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4 Reasons Why Treating Real Estate As an Investment is Wrong

There are a number of reasons to avoid treating real estate as an investment. Real estate generally requires a substantial mortgage ranging from 70 to 80% of the purchase price. This means that returns are diluted if the property does not appreciate in value. For example, if you pay $50,000 for a $300,000 rental property, you will make just under $25,000 a year. You stand to lose half of this amount.All information details Starbucks Prices

Transaction costs are extraordinarily high in real estate. Governments are required to collect a lot of money each time a property is sold, as do brokerage fees, appraisals, and legal fees.HD movies download from Movierulz Page. These costs can add up to over 10% of the value of the property, thereby making it liquid and leaving buyers with no option but to live with the property they purchased. Moreover, because transaction costs are so high, you have no control over the property’s maintenance and repair.for more updates here Picuki

Unlike most other investments, real estate is a time-consuming process. It is important to devote sufficient time to learn the neighborhood and identify problems with prospective investments. You will also need to spend time dealing with tenants and maintenance issues. Even if you hire a property manager to take care of the tenants, it still takes time. Moreover, there are risks associated with real estate, including loss of equity and taxes.All Movies Download From Afilmywap

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