Real Estate is often maligned for
having a high barrier to entry. This complaint typically refers to the
relatively larger amount of capital that it takes to traditionally purchase a
property when compared to other types of investments. It is undeniable that a
fifteen to twenty-five percent downpayment can be a substantial amount of
money. Especially when the
median house price in the United State of America is $386,000, according to
Redfin.com. Even considering the 3.5% downpayment requirement of an FHA
mortgage, which cannot be used to purchase investment property, it is clearly
much more costly to purchase a residential property than it is to purchase
stock, bonds, or some other form of investment. The numbers are even greater
for commercial property.
