Our Explaination: A real estate property has two important aspects, i.e. present use and future value. If a property is useful today but does not have a potential for a reasonable appreciation in future, it may not be considered a good investment. Similarly, if a property is not profitable today but has a potential for growth in future, one has to be careful that its carrying cost (holding cost) should not eat up its future gain.

The best investment is a property that is useful and profitable today and has a potential for a considerable profit in future.

Our Explaination: Advantage with real estate is that regardless of a possible fluctuation in the market, the property is not going to vanish like it may happen in stock market. If you secure a property with potential of growth and market goes down for sometime, you should be financially stable enough to hold it for that challenging time. Most investors suffer when they get panicked and sell in buyer's market.

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Key is to buy property with either minimum carrying cost or self-sufficient to cover at least it's own expense (break even) if not making any profits for the time being.