Thread by @tayooye

3 myths about real estate investment.
1. Real estate investments always appreciate - NOT TRUE. Remember 2008.
2. Your home is an investment - NOT TRUE. Renting is sometimes more financially prudent.
3. Real estate is ALWAYS the most profitable investment vehicle. NOT TRUE.

Myth 1.
A. If you bought a $1m house in Detroit in 1970, it's probably worth $20k today (location dynamics).

B. Property prices in London have receded by almost 10% in 2019 (Brexit).

C. Global property lost 18% to 40% in 2008.

Real estate appreciation is not guaranteed.

Myth 2.
1. Home ownership is expensive.
2. Home ownership gives psychological comfort but is often less prudent than renting.
3. Read this article
forbes.com/sites/camiloma…

Myth 3.
1. Real estate rental investment can be a great asset class.
2. Some asset classes may outperform real estate. E.g. Stock, early stage startup investing etc.
3. The key is to conduct a robust analysis before making a decision.

Don't buy the hype, buy the research.

Real estate as an asset class is oversold by real estate agents whose livelihood comes from your continued belief that it's a foolproof asset.

It's a good option for diversification but it's just one of many good options.

I am not anti-property. I just think that the hype and myths have precipitated so many bad decisions.

Please don't rule out real estate as an asset class. Just approach it wide-eyed.