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Did you know that you can invest in real estate via your 401K? It’s not something most financial planners will recommend, but it is an option. The question is whether you should include real estate in your financial planning. Let’s look at the pros and cons of it.
Everybody Needs a Place to Live
Here’s a pro to making real estate a part of your financial portfolio. Everyone needs a place to live, so if you look at investing in property that meets the needs of the time, it’s a good investment. In today’s economy, apartments, RV parks, and low income housing could be a good financial move. High rise condos could be a disaster. Pay attention to the world around you, and invest accordingly.
The Renter From You Know Where
If you decide that you’d like to get into the rental business, beware. Renters can be expensive. After all, they don’t have a long term financial obligation to your property. In short, many people will trash a place and leave you with the bill. Therefore, personal property can be a con if you don’t have the resources to maintain it. If you decide to go with an investment group, do the research. There are plenty of con artists out there. Make sure the group you invest in has a good track record and a good understanding of the real estate market today, as well as its projection into the future.
Just know that real estate is a volatile business. You will assume risk, but if you do it right, you will also build a good nest egg.
