2. Real Estate

real estate investment, rental income, property appreciation, tax benefits, mortgage interest deductions, high capital requirement, market fluctuations, property maintenance costs, property management costs, growing neighborhoods, real estate investment trusts, REITs, lower entry barriers, property resale, steady income

Overview: Real estate investment involves purchasing property to generate income or profit through rental income or resale.

Benefits:

• Steady rental income.
• Appreciation in property value over time.
• Tax benefits like deductions on mortgage interest.

Risks:

• High initial capital required.
• Market fluctuations can affect property value.
• Maintenance and management costs.

Tips:

• Invest in growing neighborhoods or cities.
• Consider real estate investment trusts (REITs) for lower entry barriers.