Understanding Direct Real Estate Investment Benefits

Very Easy Real Estate Investment Direct Investment

John is considering investing directly in real estate as part of his portfolio diversification strategy. He is particularly interested in understanding the key characteristics of direct real estate investment. Direct real estate investments typically involve purchasing physical properties, such as residential homes or commercial buildings.

Among the following options, which best describes a primary benefit of direct real estate investment?

Direct ownership provides a steady stream of income from rental payments.

Direct investments eliminate all risks associated with the real estate market.

Direct investments automatically appreciate in value regardless of location.

Hint

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