Advantages of real estate investments


Easier to understand

When you start investing, it’s a bit hard to know everything about how to make a profit (blabolig.no). Other types of investments rely on abstract concepts that are difficult to understand.



On the other hand, real estate can be understood easily because people are familiar with purchasing physical properties (https://blabolig.no/ferdighus/herskapelig/). It is easier to understand real estate investment than tough investments developed by mathematicians.

Improvable

After buying stock, you keep it for a certain period of time and then sell it for a profit. The success of the dock depends on the management of the company and cooperate success, and that is out of your control.

You are under the control of real estate investments, but you can only control things related to tenants and physical property. You can improve your investment value and make wealth only when there is good management of your real estate portfolio.

It can be finance and leveraged.

You can time purchase stocks and other assets using debt, but it can be risky, but in Real estate investment, you can purchase products using debt without any risk or problem.



Disadvantages

Requires proper maintenance and management

Once a property has been sold to an investor, it must be managed, rehabbed, and maintained (https://blabolig.no/ferdighus/moderne/). If a property remains empty for long, real estate taxes, management fees, financing payments, maintenance costs, and insurance can go up quickly.

Has higher transaction costs

Transaction cost is very low when you are purchasing shares of stock. But when purchasing real estate, the transaction cost is a bit high. Unlike other investments, real estate transaction cost affects investment value hence becomes hard to make a profit.

Has low liquidity

Real estate has low liquidity compared to other investments, which are highly liquid and can be bought and sold to make a profit.

The reason why liquidity is low in real estate investment is that properties can not be easily sold without a big loss in value.