Real estate is an ideal investment

3 Replies

Real estate is a low-risk and popular investment option. Real estate guarantees a source of passive income, and you can opt to use the investment as your retirement package. The value of real estate constantly increases.

Hey Dan,

I agree real estate is a great investment but I wouldn't say it's ideal. 

  • Real estate is illiquid - you can't sell it immediately for cash like you can the stock market. 
  • Real estate is immobile - if the neighborhood goes south you can't pick up the property and move it to a better area. 
  • Real estate has high transaction costs - most folks don't realize to buy or sell a property it costs about 10% of the sales price (6% commissions and 4% transaction fees).
  • Real estate is susceptible to harsh weather - during hurricanes, floods and freezes you can have significant property damage. Better have solid insurance!
  • Real estate is subject to annual property taxes - you have to pay property taxes every single year, and you have no control over the tax rates! They don't seem to be going down!

Don't get me wrong, I love real estate! But it's far from an ideal investment.  

Originally posted by @Dan Wynn :

Real estate is a low-risk and popular investment option. Real estate guarantees a source of passive income, and you can opt to use the investment as your retirement package. The value of real estate constantly increases.

 Didn't you just post this SAME POST last week, Dan? What gives?

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