Question:

Savings instruments: Real Estate.?

does real estate require a minimum investment?in what denominations is real estate sold?are there fees for withdrawing your money early?is real estate risky or not?what is the interest rate on real estate?when is interest compounded if compounded at all?is real estate protected from inflation?what are the advantages and disadvantages or real estate?i need help with my homework!

Answer:

Yes, your down payment is your minimum investment. Usually 5% of the purchase price or more. Sold in all denominations unless you buy stock in a Real Estate Investment Trust which might have a $10,000 share price or minimum investment. No fees for withdrawing early but there are selling costs involved. Real estate is risky. Apx 5% interest rate for a buyer today. Not compounded. It is amortized. Real estate gains from inflation.

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