The Pros And Cons of Real Estate Investing

There are numerous ways you can invest money and one of these is through a Philippine real estate investment. Just like any other investment vehicle, there are advantages and disadvantages to investing in real estate. Below are some of these pros and cons.

·         Pro: Monthly cashflow. If you want an investment that has a regular monthly cashflow, then a real estate investment is good for you. Buying some condo units that can be rent will assure you of a regular monthly income with only an initial investment and some of the usual maintenance and upkeeps. The only drawback is if there are vacancies in your properties.

·         Pro: Tangible investment. One of the best things about investing in real estate is that you get a corresponding tangible property that has value no matter what happens to the market. This is in contrast to other investment markets where you do not get any tangible item except for certificates and other pieces of paper.

·         Pro: Insurance. A real estate property can be easily insured so your investment is actually insured. Again, this is different compared to other investments that are uninsurable.

·         Con: Large initial investment.  Unless you plan to buy a property and have it in mortgage, then you will need a considerable amount of money to be able to buy a real estate property. This includes other expenses associated with owning a real estate property.

·         Con: Longer return on investment. Since a real estate property requires a large initial investment, it will take a longer time before you can get a return on your investment. For some it takes many years before they start to earn any profit on their property.

·         Con: Maintenance. Although the maintenance associated with a real estate investment is easy compared to other types of businesses, it can still be difficult to take care of especially since most who invest in real estate have other businesses or day jobs.