Pros and Cons of Real Estate Investments

Here’s 5 Advantages:

  1. High rate of return, typically better than stocks or bonds;
  2. Tax shelter (depreciation, 1031 exchanges, and capital gains exemptions);
  3. Hedge against inflation;
  4. The power of leverage: making money with OPM;
  5. Equity!

Here’s 5 Disadvantages:

  1. Illiquid (not a quick cash option);
  2. Local market risk (casualty from storms, changes in jobs or government regulations);
  3. Requires expert knowledge (contractors, engineers, attorneys, banks, realtors, title insurance);
  4. Asset management expenses, and
  5. Risks (on-site, local market, regional, national, and international.

The tv shows make real estate investing look easy and glamorous, the reality of it is – it is not easy or glamorous.

Yes, you can make good money if you do it under the right conditions and you should own real estate, especially if you are currently renting.

You’re better off building equity and taking advantage of deducting the tax interest payments from your taxable income, than paying someone else’s mortgage off (rent).

In conclusion, with a decent plan of action, using OPM, you could fund your retirement lifestyle far better than relying on interest from your own savings and depending on social security.

Go, buy some real estate!

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About iWriter

Bio: My favorite song is "My Way" by Frank Sinatra; it is a good summary of how I have strived to live my life. I've been many things, worn many hats, and have walked in many shoes. I love to listen to music for inspiration, like 80s pop/rock, 90s grunge music, urban country, Frank Sinatra, Dean Martin, Bing Crosby, Louis Armstrong, Ella Fitzgerald, Billie Holiday, Andrea Bocelli, Lara Fabian, Laura Pausini, Lana Del Rey, Ferras, Keiko Matsui, Chris Botti, Michael Buble and many contemporary Christian artists. You're likely to glean some insights into the enigma of my mind if you dare to read my work. But, ye be warned - once you are drawn into my wake, you may not be able to steer your ship out of the current. ;-) Education: AA, BS, MS, Candidate for Juris Doctor (2019)
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