has many advantages and disadvantages.
The Advantages of investing in real estate are;
- Nothing is more secure than investing in real estate
- It is a good way to generate cash flow and gain equity.
- Investing in real estate can get you both long term as well as short term benefits.
- Investing in real estate is the most stable form of investment.
- If there is an increase in value, your equity increases and so does the net worth.
- You might even qualify for certain tax deductions or advantages
- A moderate rate of return will ensure that you make a big profit when selling your property.
The disadvantages of investing in real estate are:
- Investing in real estate takes time, management and planning.
- It is not like a bank account that you can open and allow to work on its own.
- If you are investing in real estate and plan to rent out the property, you will have to carry out all your responsibilities towards tenants.
- You might be open to legal troubles by investing in real estate and renting the property.
- There is no guarantee of the returns.
- Investing in real estate is like a full time job
- You must make a good judgment as to when to sell - sell too early or too late and you might not make up on your investments.