I know people might have different opinions when it comes to investing in real estate, but in my opinion investing in real estate is actually good thing. The problem with investing in real estate is that you need a good Capex investment and not all have that money.
PC: Pixabay.com
I am not saying that you should buy today itself. You can invest the money in equities and then when you have yhe amount it's better to buy the real estate. Or taking loan is also a good thing. Now the problem is when you buy on loan and stay there, it is not a good financial options. But at the same time when you are buying a real estate which can give you some money in return as well as the appreciation is actually good.
In my opinion, buying now a piece of land is a great asset, even if you have to buy it on loan. I am not saying that you should take a huge loan or buy a huge land. A small land is also fine if you don't have any real estate. This is because as the population is increasing, the land will cost more and more and thus having one on your name would be a great wealth multiplier.
Now the problem is people will say that they have to retire early and thus keeping the money in real estate is not liquid. That's correct, buy again if you can keep that property for good use then you can earn monthly income which is again great to give you that passive income required for the monthly expense. And if that passive income exceeds expenses, then you are basically financially free.
Even if you don't get anything in return, keeping 20% of your portfolio in real estate gives you have advantage if the stock market goes down or if there is rough patch in the market. Real estate mainly land doesn't go down in value, yes sometimes it takes years to give you good returns but it will surely give in future.
