Personal Finance 1st Edition by Jack R. Kapoor

Exercise 16

1 What are the disadvantages of real estate investments?

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2 What depreciation method is used for residential real estate?

Action Application Talk to people who have invested in real estate. What are the disadvantages of owning real estate according to their experiences?

Step 1 of 2

1. Disadvantages of real estate investments include declining property values, illiquidity, lack of diversification, no tax shelter, long depreciation period, and management problems.