Why Are We Attracted To Real Estate?
Owning real estate, whether it is your home or for investment purposes, can be a great path to wealth. Depending on the property, it can generate predictable cash flow, appreciate value, build equity, be improvable, and provide tax deductions.
Location matters for real estate, but be aware of price fluctuations in the future and the present as rezoning can change values. Stigmas can sometimes overhang areas undergoing gentrification far longer than you may want.
The real culprits were the original real estate owners who wanted to participate in the real estate deal. We needed their cooperation to move tenants and business owners out of the small buildings sitting on several lots to make room for our high-rise building.
This article is not to say that “real estate is bad” or that this asset should be avoided. Not at all. It is a cautionary tale to understanding that when you are committing money to investments, to be mindful of your risks. As a professor of business and finance with both a law degree and an MBA, I consider myself knowledgeable in these areas.