Seven Harsh Truths About Real Estate

Don’t want your housing foray to end in tears? My advice: Never forget these seven harsh truths.

1. A house is an undiversified bet on a single piece of property
2. Real estate doesn’t always go up
3. Leverage bites when you get it wrong
4. A house is a long-term investment
5. The big money is in the rent
6. Home improvements aren’t an investment
7. Mortgage debt has to be repaid

Most of this is pure common sense. However, those whose expectations are out of sorts may be in for a surprise one day. Soon.