Real estate Disadvantages of investing in real estate

[Zina]

Real estate price are always very high unlike other type of investment and do affect the value of the investment and make it very much difficult for you to get a prophet and it also has a low liquidity unlike other investment that can be bought and sold for a profitbut this real estate investment it takes time for it before you can be able to send it it is not what you can easily get sold because all this real estate investment must actually be prepared to own all this property for like a month and yes and it also requires management and maintenance like you paying insurance real estate taxes management fees and maintenance cost and all these fees add up quickly most especially the property site is empty for a long period of time.
Real estate investment mostly involves taking a great deal of financial and legal liability because all the disadvantages that have been listed above will add to the liability that's a real estate investor will take on when purchasing leasing financing and also maintaining a property even though this investment properties might be in a corporation there are always the risk of losing the income and profit generated by the company

 

[Immilash]

It is very known to us that everything that has advantage must have a disadvantage. This also applicable to real estate business hundred percent, real estate business has it's own advantage and disadvantage, one of the first advantage of a real estate business is you will gain lots of profits if you invest well, while it's disadvantage is that you can lost your investment and that's a huge amount. Many people start up a real estate business without minding the advantages or the disadvantage. This are the two advantage and disadvantage of a real estate business. To avoid failures you need to invest well.

 

[Deleted member 28127]

Investing in property is saving investment means the money you purchase to save your money except if it is a commercial project means you buy real estate to rent it or to rebuy it as houses or lands then saving investment is not a risky investment because when you need money you will resell it. But if it is a commercial agency then it comes to the risk because there are many competitors that are investors like you and will sell with little margin profit and then become the concurrence itself between many merchants. So it depends if it is the first or second case.

 

[Good-Guy]

Real estate could be a profitable business. However, there are various kinds of disadvantages associated with real estate business. First of all, when you invest in any property, you will basically "block" your capital. Your capital is in the form of assets and you cannot "withdraw" some cash from that fixed asset immediately just like you do when you open a bank account and deposit capital into that account, even though your bank balance is also classified as asset. This means that you will actually need to sell off your whole property in case you need money. This is the biggest disadvantage of buying a real estate property, even if you make profits selling your property.

 

[sincerem]

I don't see much disadvantages around real estate investment, even though it has some of it's disadvantage. Which is primarily issue of capital. When you have the funds, and have the basic ideas to run and manage any real estate investment you wouldn't lose out, because you know what it takes to be on top of the business. I love real estate due to how darling it is with unending benefits which you can earn until death do apart provided you keep the house standard and run annual maintenance work to keep it attractive if you're into renting of the property.

 

[Sotherefore]

It is very known to us that everything that has advantage must have a disadvantage. This also applicable to real estate business hundred percent, real estate business has it's own advantage and disadvantage, one of the first advantage of a real estate business is you will gain lots of profits if you invest well, while it's disadvantage is that you can lost your investment and that's a huge amount. Many people start up a real estate business without minding the advantages or the disadvantage. This are the two advantage and disadvantage of a real estate business. To avoid failures you need to invest well.

I know everything has their own advantage and disadvantage but I don't really see any serious disadvantage in real estate investing except for the fact that it may not really be possible for some people to start because of lack of capital, or maybe the only disadvantage I'm seeing in real estate investment is just by investing in the wrong property which can increase your risk of lost, real estate investment is not really difficult but just that you only have to do your own diligent research when investing in a land or housing.. with this you won't have any problem.

 

[eldavis]

One major disadvantage of real estate is the level of management and maintenance needed. Over time the house would depreciate and it would cost money to do some renovations and as well maintain it on a periodic basis.

 

[Alexandoy]

I have my mind on real estate even when I was still a student. For me, real estate is the safest investment because the value is always rising and if it is your home then you have the benefit of using it. When the property is for rent then you get to earn an income while waiting for the market value to increase. I really do not know if the properties in the city is still good because the market price is already very high and not affordable to me anymore. With the disadvantage it is the liquidity. When I had my lot in a suburban town and I needed money it took me 2 years before I was able to sell the lot with a good price. Invest in real estate only when you have excess money that you will not use soon.

 

[Sotherefore]

It is very known to us that everything that has advantage must have a disadvantage. This also applicable to real estate business hundred percent, real estate business has it's own advantage and disadvantage, one of the first advantage of a real estate business is you will gain lots of profits if you invest well, while it's disadvantage is that you can lost your investment and that's a huge amount. Many people start up a real estate business without minding the advantages or the disadvantage. This are the two advantage and disadvantage of a real estate business. To avoid failures you need to invest well.

To be very serious there is no serious advantage in real estate because your property is not likely to depreciate most especially if you are investing in Land, but if you're able to invest in a good location most especially the Urban settlement I don't see any risks involved in this or do you believe that the government might eventually take over your property ? Apart from this anyone that is investing in the real estate is likely to make serious profit from the business because this is not like cryptocurrency in which the value of your assets can fluctuate, when investing in real estate the most important thing you have to do is only to carry out a research on the location you are investing and you also have to make sure that every documents is in proper condition as this will help you to understand the legitimacy of the property, when all documents are incomplete it is always a wise decision for you to reconsider investing in such property because the risk of losing or the risk of problem arriving in the future may be higher, it is just for us to do a proper research on whatever asset we are investing on that is all.