Real estate is land, encompassing both the physical terrain and any structures on it, and involves legal rights and the economics related to ownership, use, and value. (a complicated subject) It encompasses properties such as homes, buildings, and land, serving as a foundation for housing, commerce, and investment.
Investing in real estate can offer opportunities for property value appreciation, rental income(a form of passive income), diversification, inflation protection, and potential tax benefits. Still, it comes with risks like market volatility and property management complexities. (investing in real estate is so common that there are even real estate ETFs called REITs)
Further Information
Making the right decision
If you want to learn more on this topic, read this article: Should You Rent or Buy a home?
Buying Versus Renting Case Study
Property Valuation: Factors affecting property values include: location, size, condition, and amenities.
Market Trends: Real estate markets can experience fluctuations, influenced by factors like interest rates, supply and demand, and economic conditions.
Property Management: Real estate investors can self-manage properties or hire professional property management services.
Risks: Real estate investments carry risks, including property depreciation, vacancy periods, and unexpected maintenance costs.
Due Diligence: Conduct thorough research and analysis before investing in real estate to make informed decisions.
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