Pros & Cons of Investing in Real Estate

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R O S A N D CONS

P
Investing in real estate

PROS

Stability & Tangibility Appreciation Potential


Real estate provides a stable and Historically, real estate tends to
tangible asset, offering a sense of appreciate, presenting long-term
security. profit opportunities.

Diversification & Passive Income via


Portfolio Balance Rentals:
Investing in different property types Rental properties generate a
helps diversify your portfolio, consistent source of passive
reducing overall risks. income, contributing to financial
stability.
Tax Benefits
Real estate investors often enjoy tax
advantages, including deductions Leverage
for mortgage interest and property
expenses. Opportunities
Real estate allows for leveraging,
enabling control of significant
assets with a relatively small
investment.

CONS

Market Volatility Liquidity Challenges


Real estate markets can be Selling property may take time,
vulnerable to economic limiting the liquidity of your
fluctuations, impacting property investment.
values.

Management
Responsibilities
High Initial Costs Property management can be time-
Acquiring real estate can involve consuming and may involve
significant upfront costs, including handling tenant issues and
down payments and transaction maintenance.
fees.

Interest Rate Risks Market Sensitivity


Fluctuations in interest rates can Real estate values can be sensitive
affect financing costs, influencing to local market conditions,
the profitability of real estate impacting investment returns.
investments.

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