T
he notion that real estate investment is a surefire path to wealth has been challenged by a management consultant, sparking debate among industry experts. While some argue it's not the best option, others claim it can be a great way to build long-term wealth with the right approach.

    A construction management consultant from Canada recently shared his perspective on TikTok, stating that real estate is "a terrible investment" due to its hands-on nature and potential for significant management headaches. He claims that many people underestimate the amount of work involved in managing properties, including dealing with tenants, taxes, and unexpected repairs.

    However, industry experts disagree, pointing out that while real estate may not be a completely passive investment, it can still offer attractive returns over the long term. "Real estate being a terrible investment isn't entirely wrong," says an investor at Legacy Point Group, "especially for people who expect easy, hands-off income." A real estate expert in South Florida notes that managing properties requires time, effort, and management, but these burdens can be mitigated by outsourcing property management to professionals.

    Despite the challenges, many experts agree that real estate has the potential to be a great long-term investment if approached correctly. "Real estate, if done right, is one of the best ways to build long-term wealth," says a licensed Colorado real estate agent. The key is to buy smart, run the numbers right, and manage risk effectively.

    Industry experts also highlight common pitfalls in real estate investing, such as buying the wrong property at the wrong price or underestimating ownership costs. They stress that it's essential to have a clear plan and experience before diving into real estate investments.

    While some argue that business ownership offers better returns than real estate, others point out that entrepreneurship comes with inherent risks and challenges. Real estate can indeed be a powerful tool for building generational wealth, provided it's approached with diligence and a clear understanding of the economic landscape.

    Ultimately, investment decisions should be goal-driven, taking into account individual financial goals and market conditions. As one expert notes, "It's not just about expecting passive income; it's about making informed decisions based on what your financial goals are and what's happening in the markets."