ADVANTAGES AND DISADVANTAGES OF INVESTING IN REAL ESTATE

Experts say that the best thing to do with your money is to invest it in real estate, but at the same time on the other hand many people say the opposite too. They say if you want to lose your money then real estate investment is the place. Surprisingly both of these contradictory advices are true.

Advantages and disadvantages of investing in real estate
Advantages and disadvantages of investing in real estate

The real estate investments have both advantages and disadvantages to it at the same time, and it depends on the situation, decision, and fate of each individual investor.

Advantages:

  • Noteworthy Profits:

The major advantage in investing real estate is if you find a property at a very low price it would give you a significant profit when the market is high. You can also buy some place that is in danger of foreclosure and need little repair in much less than its value; repair and renovate it, then re-sell it for a much higher price. But this can be very risky sometimes and care is needed to be taken in this kind of scheme.

  • Additional Income:

You can also invest in real estate and generate immediate profit by renting out the place. After some time the rent could be increased or if you are in need big money you can sell the place anytime and get the money.

  • Create an Heirloom:

You can leave your real estate willed to your family members after your demise. It is always a secure investment in order to take care of your family after your death, even better than keeping an insure policy because it can always generate income and profit.

Disadvantages:

  • Involvement of Big Amount of Money and Time:

This business requires a huge amount of investment and needs to be taken care of as you once own the property. It is sometimes costly to manage the re-selling and operation of your property.

  • Well-timed Management:

Real estate requires day-to-day management, at both operational and at selling strategy level. It requires a lot of time and resources.

  • Challenge of Procuring:

Investment in real estate really becomes a challenge when it comes to acquiring a variety of properties and diverse kinds of properties. But once acquired this challenge you can build a strong portfolio of your real estate investment business.

In the real estate market there is no yardstick to compare your portfolio and investments. The risk is not much possible to measure and determine in real estate investment.

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