Hard assets are physical or tangible assets that hold value and are normally held for the long term.

In addition to tangibility, they are also visible and are considered an investable asset because of their intrinsic value.

Hard assets are non-perishable and possess intrinsic value.

They also act as a hedge against inflation, as their value changes inversely to changes in the value of soft assets and non-physical assets.

However, such an inverse relationship does not always hold true. As an investment alternative, hard assets provide security in times of uncertainty, market instability, and volatility. They retain value regardless of how far their market prices may drop.

Examples of Hard Assets;

1. Real Estate. 

2. Equipment and machinery.

3. Oil, Natural Gas and other resources. 

4. Paintings.

5. Collectibles.

Why should you invest in hard assets like real estate and rental properties?

1. Diversification; since hard assets help diversify your risk during volatile times in the market.

2. Income generation; By offering additional income streams to your portfolio and can help cushion your income during hard economic times.

3. Leverage; Having hard assets enables you to increase your line of credit if you need to expand your real estate portfolio.

4. Tangible value; since most hard assets are of physical nature, they provide a sense of stability and security.

5. Inflation hedge; Many hard assets tend to appreciate in value over time, often keeping pace with or outpacing inflation.
   
   
6. Tax advantage; Real estate ownership offers various tax advantages, including deductions for mortgage interest, property taxes, depreciation, and certain expenses related to property management. These deductions can help reduce your overall tax liability.

Real estate is generally a great investment option if you are able to apply these rules for making a successful real estate investment. It can generate ongoing passive income and can be a good long-term investment if the value increases over time. You may even use it as a part of your overall strategy to begin building wealth.