Real estate downsides.

[Trexxxy]

Asides from the fact that you will be needing a huge capital investment to make huge profits from the real estate business, what other downsides or disadvantages are there to the business. I have seen a lot of people say that they can't deal with the tenants problem and that they have had bad experiences from managing just a few rooms not to talk of managing a whole property. But is this enough to be discouraged??

 

[maventiger]

Not enough to be discouraged.
If I am going to be honest with you, in my own humble opinion without being sentimental of course, without offending anyone who thinks differently from your point of view, but also by looking into this matter from a distinctive perspective, I would like to say it is not enough to be discouraged.

 

[Ralphjoe]

One of the disadvantage with real Estate Business is the issues of liquidity of estate assets. This is necessitated by the existence of emergency issues, someone might urgently need the finance that is tied down in his/her property to be able to settle it but he won't get it because it's not not easy to quickly real estate business.

 

[Kiko]

Real estate has higher transaction costs. When purchasing shares of a stock, the transaction cost for the trade is very low, often just a few dollars. But when purchasing real estate, the transaction costs are considerably higher. Unlike other types of investments, real estate transaction costs can significantly affect the value of the investment and make it more difficult to turn a profit.

 

[Adexgrace]

One thing am very sure of is that there are no business with advantages and those no have disadvantages. So if that is one of the disadvantages of real estate business then the realtor should be patience enough to understand for better still select those that will be occupied in his apartment.

 

[Sariana23]

I think the main disadvantage is not knowing the real estate world and its legal part. This is very important, when you express the problem of non-payment of tenants, with the basic knowledge about it, you can solve the problem. If you do not have the knowledge, it is good to have an advisor. There is no reason to be discouraged if your goal is success, you must take the setbacks as experiences and move on.

 

[Erik4150]

Tenants problems can be dealt with and avoided effectively by applying different measures. You should make sure a prospective tenant has a well paying job before renting to him, the tenant must also have a high credit score and good educational background. If you screen your prospective tenants well you will avoid future problems.

 

[WhiteHouse]

Liquidity in land isn't in the same class when contrasted with different choices. While you can sell your property if things go bad,this may require numerous months except if you are happy to sell it at a lower price.Which implies that you would need to sit tight for monetary prizes.

 

[Virgo25]

Real Estate Requires Management and Maintenance
Once an investor purchases a property, it must be rehabbed, maintained, and managed. Financing payments, real estate taxes, insurance, management fees, and maintenance costs can add up quickly, especially if the property sits empty for extended periods of time.

 

[Kayzzy3]

Asides from the fact that you will be needing a huge capital investment to make huge profits from the real estate business, what other downsides or disadvantages are there to the business. I have seen a lot of people say that they can't deal with the tenants problem and that they have had bad experiences from managing just a few rooms not to talk of managing a whole property. But is this enough to be discouraged??

On

Asides from the fact that you will be needing a huge capital investment to make huge profits from the real estate business, what other downsides or disadvantages are there to the business. I have seen a lot of people say that they can't deal with the tenants problem and that they have had bad experiences from managing just a few rooms not to talk of managing a whole property. But is this enough to be discouraged??

Squabble or argument are part of daily interaction be in business, family and indeed everywhere, it should not be an excuse to do business in real estate.

Nevertheless, if such arises, there are simple and legal ways to deal with them, hence before going into real estate or any business for that matter, have legal backing and employ the services of a legal practitioner to first draft a working agreement between you and your client (Tenant) and also represent you in any litigation.

 

[Sammyesx]

Every business has a downside even if it is barely significant, one of the problems is having a tenant that is unwilling to pay rent, it can be frustrating because to some extent the law is in the favour of the tenant. But it is not enough to discourage one from the business

 

[Sanusi]

For me the downside is when you fail to manage your house well for instance, the factor contributing to that is bringing in bad tenants that will not bring a total development to the house. In other words before a house owner begin to start bringing in people he or she needs to make a quality decision.

 

[Judee201]

Liquidity of estate assess,
high transaction cost,
Management and maintenance
Building a high credit score
Building trust

The highlight above are some of the downside in venturing into real estate,

 

[idhans]

Asides from the fact that you will be needing a huge capital investment to make huge profits from the real estate business, what other downsides or disadvantages are there to the business. I have seen a lot of people say that they can't deal with the tenants problem and that they have had bad experiences from managing just a few rooms not to talk of managing a whole property. But is this enough to be discouraged??

It is very true that landlords face a lot of challenges with their tenants in real estate business. The best way to solve this problem is to give the management of your real estate business to a competent law firm.

 

[Alexandoy]

You are right that the biggest issue in real estate business is the tenant or the renter. During this pandemic era our government passed a temporary law that prohibits a property owner to evict a tenant for non-payment of rental. The former law on this was 2 months of non-payment and the tenant is automatically evicted. Now there are tenants who do not pay rent for 8 to 10 months and the owner cannot do anything. This is a very unfair situation to the real estate owners.

 

[Neeta313]

Personally, I feel there are different issues that may arise when it comes to real estate. I know of someone who started, she selected her area of where she wanted to develop the houses and she couldn't continue, there was no infrastructure in that area, she just abandoned the project. Also dealing with tenants may not be easy as well, you know having to deal with different people from different backgrounds can be draining sometimes.

Post automatically merged: Feb 9, 2021

Personally, I feel there are different issues that may arise when it comes to real estate. I know of someone who started, she selected her area of where she wanted to develop the houses and she couldn't continue, there was no infrastructure in that area, she just abandoned the project. Also dealing with tenants may not be easy as well, you know having to deal with different people from different backgrounds can be draining sometimes.

 

[Akinwale701]

Asides from the fact that you will be needing a huge capital investment to make huge profits from the real estate business, what other downsides or disadvantages are there to the business. I have seen a lot of people say that they can't deal with the tenants problem and that they have had bad experiences from managing just a few rooms not to talk of managing a whole property. But is this enough to be discouraged??

there are some Problems associated with being a real estate agent...especially when you buy a property for the purpose of reselling it, you are not sure whether the person who sold the property to you he a thief or a fraudster, there are problems with clients too etc

 

[kayode10]

One of the downsides of real estate investment is that it can tie your money down. you can use your savings to build a real estate property and still no have a tenant that work will pay the property. In this case your money is being held down buy the property, what can be used to channel to all the investments that will bring money. Another downside of real estate investment is that it comes a lot of hassle before you go find the right property to invest.

 

[Mawome]

Bro there is no downsides when it touches real estate business, in fact the is issue of downsides does not arise at all, if you are a landlords and you can not manage your property why not involve your lawyer, that's just the solution to your so called discouragement.

 

[Sariana23]

Bro there is no downsides when it touches real estate business, in fact the is issue of downsides does not arise at all, if you are a landlords and you can not manage your property why not involve your lawyer, that's just the solution to your so called discouragement.

You are absolutely right @Mawome , the best way if you find yourself in any difficulty to manage a real estate business is to hire a lawyer to take the reins and successfully run the administration . Otherwise I see no downside to moving forward in the various ways in the real estate world.