When you invest in real estate, the goal often is to putting your money to work so that it increases and creates more money for you for future use. Any profit that you make has to take into account that you will have to pay taxes on the real estate you now own, and also the cost of utilities used, amounts you spend for maintaining the property, and any required building insurance.
The income that comes from your real estate investments can come from rental income or can even come from flipping the property, which means selling it after effecting some improvements. You can also invest in real estate though trusts that are into real estate, and allow others to take the risk.
Investing in real estate can less risky than the stock market, which always has a high volatility. Most properties do deliver good returns in the long term.
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