Disadvantages of Investment in Real Estate :
(1) Investment in real estate properties is normally substantial. Due to huge investment
in one item, the benefits of diversification of investment are not available.
(2) In real estate property, profitability is available at the cost of liquidity. Thus, liquidity is
low.
(3) The risk in the investment is more as compared to investment in banks, UTI, etc.
(4) Tax burden in the form of stamp duty, capital gains tax, etc. is heavy as and when the
property is sold out.
(5) Repairs, maintenance, etc. constitute additional expenditure and botheration to the
owner.
(6) Government rules and regulations regarding buying and selling are troublesome in
the case of real estate properties.
What are the disadvantages of Investment in Real Estate?
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