Two major challenges in real estate investment

[Sotherefore]

Real estate is among one of the most profitable investment offline . There are various reasons for this and One of the most important reasons is that real estate properties is on high demand and people who could afford to invest in real estate are likely to earn high return interest from their investment. However there are some challenges in real estate investment industries that could possibly limits people not to consider it as the best way of earning.

* One of the major disadvantage of real estate investment is that it will require a huge some money to start up a reasonable investment in the real estate industries . This is something an average person may not afford , making it's a major challenges for most people..

* Another possible challenge of investing in real estate is the location limitation.
People who are living in the rural settlement may not likely be comfortable traveling all the way to invest in properties in the Urban settlement for maximum profit. As we all understand, investing in the Urban settlement is more profitable than investing in the rural areas because of high rate of development in the Urban settlement.

This is the major challenges of most people because they can't easily travel from their various locations to a location in which real estate will be a profitable Investment and Also the huge capital requirements. .. what other challenges do you see in the real estate business ?

 

[Chandana]

There is something to be added. The real estate price depending on the country's political situation also. Specially countries with social unrest and suffering from political unstable then the real estate price goes down.

 

[btaliat]

Real estate is one of the lucrative investment one can easily think of but it had its own negative sides which may even outshine the positive ones especially for a fainted heart.

The first one as the poster rightly said is the capital aspect of it. Most time, we always think real estate is easy to start but reality will always dawn on is when we later realize that it does require more than what we can really estimate sometimes. Since the land owner know that real estate investment is the hot cake now, they have found a way of increasing the prices of their lands.

Improper town planning is one of the numerous problems that faces real estate investment. I have seen some realtors that have lost their lands as a result of this. They don't even know the lands bought is closer to where government may need I'm the future for some projects. There are some house owners that have even had their houses demolished on this ground. That's why some people do preach collecting of certificate of occupancy having bought lands to secure the lands.

Finding customers is the next problem. It may not look difficult but it is especially for someone that's new into the business. We may always find it difficult to make customers because of trust issue. Many realtors waste so much on advertisment just to make sure they win confidence of prospective buyers.

 

[Mika]

You need a lot of money to invest in real estate. This is the major drawback of real estate investment. Another drawback of real estate investment requires you to hold your investment for years before you can profit. For example, if you invested $200,000 in a house, you cannot resell the house in 2-3 months and recover your investment s well s profit from your investment. You might have to wait for a couple of years to make a substantial profit. If the money you invested in the property is not yours and if it is burrowed money or a bank loan, you will not be able to hold for a long term and might end up selling the property without making profits or might even end up selling for a loss. If you are not financially capable to hold your investment for the long term or until the property price goes substantially high, real estate investment is not for you. If you do not have your own money and if you are investing in real estate through a loan, you will have to think twice before doing this because you will have to pay the loan immediately yet you will not earn profits immediately.

 

[Holicent]

No matter how you put it, real estate investing is hard. It's a big, risky investment just about every time, and it's important for any investor to understand the risks involved. Here are the major challenges that face real estate investors today:

1. Paying for it
The biggest challenge for most investors is simply having enough cash on hand to make their first purchases. There are a variety of ways that real estate investors can get the capital they need to make an initial investment, but they all come with high interest rates and sometimes high capital requirements as well. Access to capital is going to be out of reach for many investors, so this is a concern that needs to be seriously considered.

2. Finding the right property
The next major challenge is locating the right property in the first place. Most investors don't have access to massive databases of properties like some of the larger firms might have and even if they did, they wouldn't have time to sift through them and find the right deal. This means that smaller investors should take advantage of all of the tools at their disposal when looking for their next investment opportunity. That includes everything from working with a real estate agent who specializes in investments, scouring online.

 

[Ithedicious]

The fact is that so many people won't even have any problem migrating from the rural settlements to the urban settlements to invest in any favourite investment of their choice , but the most important thing is that so many people do not have money . That is the most important thing that must be put into consideration when thinking of investing in the real estate industries. If real estate industries was the type of investment that requires less amount of money like cryptocurrency , we could see that so many people could have invested their life savings heavily in the real estate industry . But unfortunately this type of investment is only for people that have enough money.

A lot of people also consider real estate business to be a risky business in the sense that a lot of scammers are taking over the real estate industry . As a result if proper care is not taken, you might even be a victim of scam which is what a lot of people have been trying to avoid.

In all the same , real estate investment offer greater advantage if anyone has opportunity to invest. Apart from the fact that it requires a huge sum of money , I consider it to be one of the safest investment.

 

[Jasz]

Real estate investment is one of the most popular investment options, as it offers a great deal of flexibility and returns.
However, there are many challenges in real estate investment. The most important thing is to invest in the right market and the right property. If you pick the right market, you will be able to get good returns on your investment. Here are some of the major challenges that investors face:

1. Market volatility

2. Lack of funds for renovation and repairs
3. Finding a tenant who will pay rent on time
4. Time lag between investment and revenue
5. Risk of vacancies
6.Lack of liquidity. The biggest problem with real estate is that it can take a long time to sell or refinance and get your money back out. That's why so many investors use leverage (borrowed money) to buy properties. The challenge is that if you have a lot of assets tied up in real estate, you may not have enough cash on hand to buy other investments when they become available.

 

[Shigobad2020]

Real estate investment is a huge business which is one of the best lucrative investment that has been existing before crypto currency and other form of investment started, it's a business that is on high demand and not just anybody can start the business .

In order to start a real estate investment business , you need to have a huge amount of money , because you need to buy hectares of land in which you need to build the house in and you need a huge and tangible amount of money to execute the project , so it means its a business form the wealthy people and not meant for the poor.
You also need to have a good location to build your estate , I mean building your estate in a busy urban environment where people are looking for acomodation will guves you an advantage of getting your estate rented out within a short period of time .