Florida Realtor Sales Associate Practice Exam

Liquidity is often not considered an advantage of real estate investment because real estate properties are generally illiquid assets. This means that, unlike stocks or bonds that can be quickly sold on the market, converting real estate into cash typically requires a longer time frame and may involve additional costs such as agent fees, closing costs, and market fluctuations.

In contrast, equity buildup refers to the increase in ownership value over time as the mortgage is paid down and the property potentially appreciates, which is a significant advantage in real estate investing. Tax deductions, such as those for mortgage interest and property depreciation, can also provide substantial financial benefits to real estate investors. Furthermore, prestige can be gained from owning desirable properties, contributing to the overall value and allure of real estate investments. Each of these factors highlights the long-term benefits of real estate, while liquidity poses a challenge that investors must consider.