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  • Writer's pictureAJ Shepard

Roadblocks: Reasons Why People Are Not Investing in Real Estate

Updated: Jun 26, 2020

It is not surprising to find someone who is hell-bent on the idea that investment in the real estate sector is a bad idea. And while might argue with the pro and cons of investing in real estate, choosing to invest in real estate results in wealth creation. A study done by PR Newswire showed that approximately 88% of all investors had expressed interest in investing in real state. Additionally, investors agree that a portfolio with real estate is the best care they could leave to their families. This is with the fact that those of who have invested in real estate expressing an interest to reinvest into it.

However, amid the talks of benefits surrounding real estate, there are those who profess another thought; “investing in real estate is bad.” Here are some of the reasons why people are not investing in real estate

  1. Lack of knowledge: this is one of the major reasons as to why people are not yet investing in real estate. Most people go by their days unperturbed, but when reality kicks in, they do not know where to start. Additionally, the lack of knowledge about the process will end up in an overwhelming experience. Therefore, in this case, it is advisable that you get in touch with experts who will guide you as you make the right step towards your investments.

  2. Lack of time: Ken McElroy in the “ABCs of Real Estate Investing,” provides an insight into how to spot investment properties within your vicinity. While very eye-opening, it also exposes one to the danger one faces while taking too long to identify potential investment property. With limited time due to commitments to other areas of life, it is imperative that one uses any free time such as weekend as hunting days. Additionally, one should consider using other strategies such as networking, billboards, and direct mailers, among others.

  3. Lack of Capital: similarly to other types of investments, real estate also requires money. Additionally, other techniques for investing in real estate with little or no money often involves tedious processes that most people would rather not do. Additionally, it should be noted that the time the property stays idle, it becomes an extra cost. This becomes more expensive if the money was borrowed from a financial lender. The individual will have to cut into his or her other sources of income to service the mortgage used in acquiring the property.

  4. No Confidence: any investment is associated with some level of risk, and this might present some fear in taking the decision to invest in real estate. Even with all the available resources, some investors will freeze before deciding to invest in real estate. One of the remedies for this is limiting your choices, set up a threshold, and focus any property that meets the threshold

Just like any other investment, it is critical that you research and approach it from a more knowledgeable position. This ensures that you are making the right choice; that is, high yields coupled with low risk.

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