10. Control

Investors have more control over real estate investments compared to stocks and bonds. As an investor, you can control the type of property you buy, how you finance it and who manages it. This allows you to tailor your investments so that they match your goals and interests. Additionally, investors have more control over their cash flow with real estate investments than other investment vehicles as rental income is predictable and can be used for multiple purposes such as retirement income, paying off debt or funding other investments.

10 Risks of Investing in Real Estate in 2024:

1. Market Risk

Real estate investments are subject to market fluctuations and can decrease in value if the market changes. Although real estate investments are typically steady and can provide a good return on investment, it is important to keep an eye on the market and be prepared for potential losses in value. It is also important to make sure that you diversify your real estate investments across different locations and types of properties.

2. Property Management Risk

Property management can be complex and time-consuming, leading to potential losses if not done properly. It can also lead to legal risks if not done in accordance with applicable laws and regulations. Property managers should be experienced professionals who understand the real estate market and have good knowledge of tenant rights and obligations. Additionally, a landlord must consider what type of insurance is needed for their investments, as well as any tax liability that may arise from owning rental property.

3. Leverage Risk

Leveraging can amplify returns but also increases risk if the real estate market changes. When borrowing money to invest in real estate, you are leveraging the investment. This can be a great way to increase returns on a real estate investment if values rise and leverage works in your favor. However, if the market takes a downturn and real estate values decline, this leverage could become a liability that puts investors at greater risk of losing their investments.