In our life, real estate has been the only really safe investment.
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The problem with real estate as an investment is you have to maintain it, insure it and pay taxes on it every year.
It’s not too bad if it’s your homestead because it’s better than paying rent and there are some capital gains tax advantages.
The problem with real estate as an investment is you have to maintain it, insure it and pay taxes on it every year.
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Another problem is liquidity. Selling off your assets to raise cash can be problematic.
However, if you invest in REITs they trade like stocks and are therefore very liquid. That said, if you have to sell shares during a market downturn you may take a loss. REITs also provide a predictable income stream without the hassles of dealing with delinquent renters.
I have done quite well on a total return basis with several REITs that I own.
“The problem with real estate as an investment is you have to maintain it, insure it and pay taxes on it every year.
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All true, but your income is sheltered because it can be depreciated, and there is an industry to handle everything from financing it to managing it.