Real estate comprises of property that includes land and infrastructure being built on it along with the available natural resources in the area. Be it commercial or residential it is fast becoming the most preferred option for investors. With a bright future in real estate, it has become one of the largest sectors in the country that’s employing a significant section of the society. It is no surprise that millions of people all over the world consider it one of the best options to invest their money. But is it really wise to invest in this sector?
We have 9 reasons for you, why not to invest in real estate.
An underachieving resource
Fixed deposits give somewhat equivalent returns as that of real estate investments over the same period unless the prices in real estate are enthusiastic. Sometimes the returns are smaller than what one would get out of FDs. The returns in real estate are unpredictable and uncertain.
The uncertainty of the stagnation period
For media-savvy and quick-witted investors, real estate is an easy thing. They have prior knowledge of the areas that will experience developmental resonance.
Memory and emotionally oriented class
For some people, a property is just not a piece of land they’ve got emotions attached to it. Ancestral memories, links, and memories related to birth can sometimes not allow you to emphasize on the returns that one would be getting otherwise and that goes unnoticed.
No guarantee of interchangeableness
Sometimes in urgency, it’s a buyer’s market and would not fetch you the real value of your asset. It becomes difficult to find the right buyer who would give you the right price for your property.
Real estate is fond of disputes
From encroachment to family disputes as well as litigations leads to delay in exchangeability. The asset might lose its value in the process.
Liability of maintenance
Unlike other assets and resources real estate requires high maintenance and attention. This includes taxes, maintenance charges and finding tenants.
Difficulty in following a trail
Other options of investments give you an easy way to track the development without putting in a lot of efforts.
Additions in assets may not necessarily yield better returns
Enhancements in an asset may or may not yield a better value for your property.
Managing teak estate can be time-consuming and tiring if you’re doing it on your own. If you have multiple properties, you may have to hire yourself a property manager.
By Aadil Saif
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