Hailin asked in Business & FinanceInvesting · 11 months ago

is real estate safe if you want to invest what is the downside?

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  • Sam
    Lv 7
    11 months ago
    Favourite answer

    The downside is it goes down in value, same as any investment.

  • Edward
    Lv 7
    11 months ago

    People are the downside get a deadbeat in your apartments it’s like a nightmare to get the out.

  • 11 months ago

    Ummm... 2008.... you borrow to buy Real Estate usually, which helps on the upside but magnifies the downside.

  • 11 months ago

    Property values do vary.

    Property taxes...need to be paid.

    Lack of liquidity, takes a lot longer to sell real estate than to sell a financial instrument traded on a marketplace...

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  • 11 months ago

    There are a variety of ways to invest in real estate. The potential risks and downsides vary.

    One downside that is almost always present is that you need to pay property taxes. If the property is developed you will also need to pay insurance premiums.

    Another downside that is almost always present is that the value of the property can go down. This can be due groundwater contamination, a natural disaster, a change in local zoning laws, or simply an economic downturn in the area. It is also possible that renters (if any) or simply trespassers can damage the property.

    There is usually also some time, effort and money required to maintain property.

    I am not saying real estate cannot be very profitable. My parents twice bought land where they planned to retire. The first land they bought was taken over by the government to become part of the national part system. They made a good profit on the land from the government. The second land they bought soared in value when a developer build a ski resort about a mile away.

  • Bryce
    Lv 7
    11 months ago

    Investing in real estate is very risky, and it involves lots of money.

  • Anonymous
    11 months ago

    DO NOT FEED THE TROLL

  • Judy
    Lv 7
    11 months ago

    No, you czn lose much of your money.

  • Anonymous
    11 months ago

    "Safe" is subjective

    There are risks in any kind of investment

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