Real estate investing is the purchase, ownership, management, rental, or sale of real estate for profit or long-term wealth accumulation

. Investors can engage actively or passively in real estate transactions, with the primary goal of increasing value and generating profit through well- informed decisions and market analysis

. Methods of Real Estate Investing

• Direct Investment Direct investment includes purchasing a home, rental property, or land

• Indirect Investment Indirect investment is commonly done through real estate investment trusts (REITs)

. REITs hold portfolios of income-producing real estate

Real estate investments can include residential and commercial properties

. Residential investments include homes, townhouses, and condominiums, while commercial investments can include retail stores, office buildings, storage facilities, and warehouses

. Benefits of Real Estate Investing

• Potential for building wealth and increasing income

• Portfolio diversification

• Steady income

• Capital appreciation

• Tangible asset with a sense of security and stability

• Hedge against inflation

• Tax benefits like deductions for mortgage interest, property taxes, and depreciation (specific to European countries)

Drawbacks of Real Estate Investing

• Can be illiquid

• Requires a large initial capital outlay

• May require active management and expertise

• Subject to market risk

• High fees