My honest $ 0.02... it depends on a lot of factors... do you have the capital to run/start such an investment, the location, the taxes, legal ground to be covered and what it entails? e.t.c, all these factors have to be put into consideration, then again if your heart is set on such an investment, i believe nothing will stand in your way
I don't think it makes a major difference and you purchasing a slum property. But the main thing you have to take a look at is if the slum property perhaps has any issues with it and attendance then damage the property further you will be left with the repercussion of a trying to do the renovations that some property there for losing the money that you would have invested in purchasing a property in a better location.
I think investing in real estate has been a tried and tested way of profit so long as you invest in the right one. However, it requires quite a bigger amount of money to be able to invest in it compared to investing in stocks.
Any discussion about real estate in general should be discounted by its location. The claim "It's (real estate) value never decreases these days...the property values only increases" might be true for that specific area and during a specific time period. But property prices can fall, and have fallen worldwide during the great recession which for some, resulted in losses in excess of their original investment.
Property as an investment is only as good as the investor. This is why I think real estate is better than the stock market.......in a nutshell: Real estate is tangible. You can see and touch it. Stocks are not. Real estate and stocks both have values that fluctuate. Heck, you can even have stock in a real estate company, but the real estate isn't going anywhere. A bad economy can kill the real estate company, but it can't kill the real estate itself.
I agree with that Delta, property is a very good investment if the location is good. In a matter of years (let's say a decade) and depending on the location we can nearly double our investment.
