Benefits of Direct Real Estate Investment

Real estate investments can take various forms, and one method involves direct investment in property. In direct investment, an investor acquires ownership of a physical real estate asset, such as residential, commercial, or industrial properties. This investment strategy offers specific advantages, such as potential rental income and property appreciation.

As a CFA candidate, describe the key benefits of direct real estate investment compared to other investment vehicles. Include at least two specific benefits in your response and support your statements with clear examples.