How do you know if Real-Estate is the right investment for you?

Many beginners often wonder whether Real-Estate is the right investment for them. While there is no litmus test to get an easy answer, it is quite subjective. It mostly comes down to each individual’s expectations and timeframe. Following is an evolving list of conventional and recent traits observed and lessons learned from seasoned investors – that hopefully provides some guardrails to help making informed decisions.

Mindset: investment in any form of Real-Estate is not a get rich fast scheme. If you are making a buying decision and expect/hope the property value to skyrocket overnight, so that you can sell it to make a fortune out of it, you may not have an investor mindset. Investing in any form of Real-Estate is more like long-term buy and hold (as opposed to day trading) strategy in high conviction/ blue chip stocks/ETFs.

If you are constantly looking up your property in Zillow or Redfin to track home price movement, please be aware your property offers way more investment benefits – besides price appreciation. Such benefits often get overlooked by novice investors.