Advantages of Real Estate Investment
The advantages of real estate investment are much like the advantages of any investment… there is an opportunity to make money, sometimes large amounts of money. Resale investors can often purchase property that needs minimal repair, fix it up, and see a significant increase in their profits for not a whole lot of money. Rental investors can make even more over time, because as long as their property is occupied they're going to be making money. Years down the road, they can also choose to sell their rental property for additional profits.
Disadvantages of Real Estate Investment
While there is a great potential to make money with real estate investment, it's not without its disadvantages. For resale investors, they may not be able to find a buyer as quickly as they'd like, or the real estate market might drop after they'd made their purchase… either scenario meaning that they aren't able to get the money out of the property that they want or in some cases not even able to get back what they put into it.
Rental investors have to deal with the people who are renting the property, as well as potential periods when no one is renting it… and are responsible by law for certain amounts of maintenance and repair even though it may be the tenant's fault that the repairs are needed.
They also have to deal with non-paying tenants, and those who are quick to threaten legal action even if it's not legitimate. Both types of investment also require payment of property taxes and other fees.
Money can be made with real estate, just make sure that you're ready for the drawbacks as well.
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