There are many investment strategies out there, so why would real estate be on the table? The reason most people invest in real estate is the long term gain.
In most cases, you make a big return over a long duration of time by paying down the mortgage. Investing in rentals is popular because the renters tend to pay off your mortgage for you. You can also look for the best real estate investment strategies archives online.
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The primary comparable medium for real estate is the stock market. Many people will argue till their tongues drag that one or the other is better.
The primary difference between the two, of course, is liquidity. When you want to sell a stock, you can do so today. The buyer does not need to have the shares inspected to make sure they are in good shape.
When considering investing in real estate, it is important to keep a few guidelines in mind. First, this is a slow and steady profit strategy. The longer you hang in, the more you will make.
Second, there are going to be good years and bad years. Valuations will go up and down, but you should come out ahead in the long run. Third, the cost of investing can eat into your profits. Keep in mind the costs of selling such as realtor commissions and transactional fees.
With any investment, it is important to consider the potential risk that everything goes to hell in a handbasket. Obviously, this can be a big problem with stocks. A high flying stock today can be a loser in a big way tomorrow.