Buying Into Property
Many investors buy into property rather than shares when investing. The downside of having property for an investment is that it usually requires fairly high maintenance to keep its value. You don't have to paint and repair shares and stocks; you must if you have a property. On the other hand you don't have to pay a fund manager's fees when you have property.
They like the fact that is a tangible investment that can be seen, so even if shares crash overnight, they still have a solid, bricks and mortar investment. Of course real estate values can also drop dramatically, but at least a property cannot disappear off the face of the earth. And real estate values always rise again given time. Then, if the property has been leased to a tenant, there will always be some income from it, even if the value has plunged.
If the real estate investor can also do home renovations then they are quite a bit ahead of their competitors, in that they can add value to the home for a much smaller cost. Adding value means that the property can be sold more quickly for a profit, rather than waiting for property values to increase. However, property cannot be bought and sold as quickly as shares.
The downside of having property for an investment is that it usually requires fairly high maintenance to keep its value. If the real estate investor can also do home renovations then they are quite a bit ahead of their competitors, in that they can add value to the home for a much smaller cost. Adding value means that the property can be sold more quickly for a profit, rather than waiting for property values to increase. However, property cannot be bought and sold as quickly as shares. You don't have to paint and repair shares and stocks; you must if you have a property. On the other hand you don't have to pay a fund manager's fees when you have property.