2006-10-03 06:12:16 · 12 answers · asked by . . 1 in Business & Finance ➔ Investing
Im talking about the REAL ESTATE world of investing
2006-10-03 06:21:14 · update #1
pros of investing = gain
cons of investing = risks & pain
no pain, no gain; however, being too greedy and not disciplined might also cause you to lose all your capitals.
For REAL ESTATE investment, there are also a few additional pains/cons you need to be aware of:
1. hidden cost of investment, especially during transactions (aka "escrow"): costs to buyer when buying a property and cost to seller when selling a property. For example, it is expected that the seller would pay between 4% and 6% commission to agents to sell a property.
2. liquidity: unlike stocks/bonds, real estate investment is not 100% liquid, meaning you cannot just sell it at anytime to get your money. In bad buyer's market ,it might sometimes take month to sell your property.
3. maintenance: other investments require minimal maintenance fee; real estate investment requires periodic and at times significant investment to maintain/improve the value of the property.
2006-10-03 06:25:00 · answer #1 · answered by Novice 4 · 0⤊ 1⤋
If it have been mounted into an IRA you'll use further investments to fulfill your mannequin. The handiest drawback is the yearly cap of an IRA. In a individual account I'd do two shares a month at $three hundred. After three months you'll use next investments to fulfill your mannequin. With buck fee averaging the extra widespread you'll make investments the extra it may possibly aid your returns. With commissions despite the fact that shopping higher blocks with make it less complicated to make up the expenses.
2016-08-29 08:41:17 · answer #2 · answered by brickman 4 · 0⤊ 0⤋
Real estate investing has some risks that do not exist with stocks other financial instruments.
1.) Carrying cost - It cost money to own real estate: taxes, interest, and upkeep all eat into any profit
2.) Illiquid - Selling real estate can be difficult, and takes time. You cannot get you money out quickly
3.) government - External forces like changes in zoning or road construction can negatively affect the property value
2006-10-03 06:29:05 · answer #3 · answered by bookbyte 3 · 0⤊ 0⤋
One major con that I have seen is the envy from all of those who know you and those who no longer want anything to do with you because you are becoming successful. The more money you make and the better you do financially will result in more people who have their hand out looking for something from you. And when they realize that you did not get into investing so that you could be a philanthropist they say terrible things about you and stop being friends with you.
2006-10-03 06:22:54 · answer #4 · answered by Joe K 6 · 0⤊ 0⤋
well it all depends on what ur thinking about investing....im in the real estate investment..and its great, if you have good tenants :))
2006-10-03 06:18:23 · answer #5 · answered by ? 2 · 0⤊ 0⤋
Investing is like gambling, you hope your money does well, but you never know. You could loose everything, like Enron or Worldcom investors. Or you could be billionaires, like the people who first bought into Dell and Microsoft.
2006-10-03 06:13:59 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Future happiness at the cost of present happiness
2006-10-03 06:25:33 · answer #7 · answered by Arasan 7 · 0⤊ 0⤋
If you really have to ask that question, maybe you better stick to a savings account at a bank.
2006-10-03 09:29:43 · answer #8 · answered by etilyad 2 · 0⤊ 0⤋
losing Money,
Because
Nothing is Guaranteed.
2006-10-03 06:42:01 · answer #9 · answered by cawillms 3 · 0⤊ 0⤋
only one, a single poor desicion , and its all over.
2006-10-03 06:33:59 · answer #10 · answered by Supersnooper 2 · 0⤊ 0⤋