The latest pitches generally aim to eliminate the day-to-day
headaches of being a landlord, and the potential payoff can make the
concept worth considering. Investors can buy in for the price of a
single-family home or a single share of stock. But the plunge in U.S. home prices in the financial crisis should be a fresh reminder that bets on housing can sour in a hurry.
The
latest deals often don't depend on home values going up, which sets
them apart from the house-flipping strategies that cost many home buyers
dearly when the market collapsed. Yet investors could still face losses
if, for example, the economy weakens and renters can't keep up with
their payments. Those
who buy a rental property and then need their money back down the road
could also get burned.
Unlike stocks, bonds and mutual funds that can be
sold quickly, it can take months to unload a house even in a strong
market. And if prices decline, investors may lose a chunk of principal
for good. Despite the risks, investors worried about pricey
stocks and meager bond yields can be lured by the prospect of a steady
income stream and average annual returns that could range from 5% to
15%, if things go well.To know more visit our site http://allindiayellowpage.com.