what kind of investor should invest in real estate ? please provide details .is it an asset or liability?
Real Estate is only good if you are wanting a long term investment. To invest in real estate, it means you purchase a piece of property (house, duplex, apartment/condo, shopping complex, etc). Those who should invest are those who can pay cash and buy at less than 70% of the appraised value of the property. Real Estate value always goes up, so it's a good investment. Real Estate is an Asset if you make it one, and a liability if you let it be one...if you try to sell quickly or in desperation. Talk to a real estate investor one on one and find out more details there if your wanting to get started.
The term real estate can be taken literally. In other words, you are not investing in a piece of paper, an invention, or a concept, you are investing in a tangible item -- a piece of land or a physical brick and mortar house. For this reason, because the investment is in something tangible and considered to be long-lasting, the investment is deemed not as risky. The item is real. Now there are all sorts of complications to whether a person should invest in real estate as part of their overall portfolio. Historically, real estate has only returned to investors approximately the rate of inflation. So, if you buy a house at 100,000, in real terms, you are going to sell it for 100,000, even if it seems like it can be sold for $115,000 in 5 years, this is only a 3% gain per year which is approximately an estimate for inflation. On the other hand, stocks may return as much as 8% real return per year, so you are actually growing your money with stocks. Your real estate investment just freezes your money. However, there are reasons for some people to hold very conservative investments, so they may wish to buy real estate. Also, you may try to make money by renting out the property to someone else. They will be paying you to use your land. This can be looked upon as a stable bond investment that pays you income. Hope that helps.
