What is Essential Real Estate?

It's important to note that real estate is a non-renewable resource. It is in increasing demand with limited supply. Historically real estate has proven itself to be an asset that appreciates over time. When used for rental purposes, it has the ability to provide a passive income.

"Essential Real Estate" can be defined as basic (albeit nicely renovated) living accommodations in secondary markets for the average tenant. Because this type of rental property serves an essential need, it provides stable and predictable investment performance over time.

Let's compare "Essential Real Estate" to speculative real estate investments:

Essential	Speculative
Predictable Secondary markets Impervious to market conditions Needed by everyone Located in revitalized communities No-frills, low-rise properties — no costly repairs	Volatile Primary markets At the mercy of the market Wanted by some Located in over-priced primary cities High-rise, upscale — expensive to maintain and repair (pools, hot tubs, elevators)