What are the advantages and disadvantages of real estate investment?

1) Real estate is a durable consumer product.

Real estate is a necessary consumer goods for people's life, but it is different from ordinary consumer goods. In general, the life span of a house is more than 100 years, or at least several decades (the term of property right is 70 years). This long-term persistence provides broad time opportunities for investment profitability.

2) The property value is relatively stable.

Compared with other consumer goods, real estate has a relatively stable value. Scientific and technological progress and social development have relatively little influence on it. Unlike ordinary consumer goods, such as cars, computers, home appliances and so on. The value will only decline with the development of science and technology. Therefore, real estate has a good function of maintaining and increasing value.

3) Real estate has the potential of continuous appreciation.

Due to the scarcity and non-renewable land resources, the continuous growth of population and the improvement of residents' living standards, the demand for real estate in the whole society has been on the rise for a long time. Specifically, people always want housing and need to constantly change their living conditions. These opportunities bring predictable returns to real estate investment.

Disadvantages of real estate investment:

Generally speaking, investing in real estate requires sufficient savings. Before the houses are sold and realized, these houses need to pay costs, such as water, electricity, media or property fees, some taxes and fees for owning houses, and house maintenance fees. There is also the problem of tight cash flow after investing in real estate. If the mortgage loan cannot be paid off, you may face some conflicts or troubles.