Warren Buffett doesn't invest directly in real estate, but he does invest indirectly: Podcast explains the background to this strategy.

Warren Buffett doesn't invest directly in real estate, but he does invest indirectly: Podcast explains the background to this strategy.

Crisis-proof, high-yield, something you can touch – many properties are attributed to real estate. Also that they are good investments. Tim Temp and Benjamin Heimlich explore why this classification is actually wrong and why the star investor Warren Buffett doesn't like real estate but still invests in it in a roundabout way in episode 102 of thesimply exchange-Podcasts.

TheTopic of the weekThis time it's about the interest rate break that the ECB took at the end of October.

TheNovember editionfromsimply exchangeyou can find it here.

simply exchangeYou can listen on all common podcast platforms as well as via the episode overview of DER AKTIONÄR.

Foto: BMAG

Hinweis: Die im Podcast besprochenen Aktien und Fonds stellen keine spezifischen Kauf- oder Anlageempfehlungen dar. Die Moderatoren oder der Verlag haften nicht für etwaige Verluste, die aufgrund der Umsetzung der Gedanken oder Ideen entstehen.

According to a report by www.deraktionaer.de, the article addresses the incorrect classification of real estate as good investments. Star investor Warren Buffett's negative attitude towards real estate is also mentioned, even though he invests in it indirectly.

In fact, real estate is often assumed to be safe and profitable. They are considered crisis-proof and offer a physical investment. However, the article explains that this assessment is incorrect.

Based on our own analyzes and facts, it can be concluded that real estate investments are not always profitable. The performance of real estate depends heavily on various factors, such as the economic situation, location, demand and supply. A sharp increase in property prices can lead to inflated purchase prices, which can result in lower returns or even losses.

In addition, purchasing and owning real estate requires significant financial resources. Additional costs such as maintenance, administration and taxes can significantly increase the overall cost of a property. These expenses must be taken into account when calculating the expected return.

Another factor that affects the profitability of real estate investments is the availability of credit and the level of interest. If interest rates rise, this can increase the cost of financing to purchase a property and therefore reduce the return.

In summary, real estate investments do not always provide the expected returns and can involve significant risks. It is important to conduct thorough analysis and consider current market conditions before investing.

Source: According to a report by www.deraktionaer.de.