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Advantages and Disadvantages of Passive and Active Investing

In our previous article we broke down the differences between active investing and passive investing. If you didn’t catch that primer be sure to read it here.

Passive investing may seem to be the new rage that has been around for years but maybe you are just finding out about it now. As you may have realized or learned in our previous article, many people have the wrong idea about what passive investing truly is. This mistake is costing them time and money and may even lead to feelings of burn out and disillusionment. If you know of anyone that has that feeling or if you are experiencing it yourself then you probably aren’t truly passive investing.

As you may now have a better understanding of what the true definition of passive and active investing is and what the differences are between the two, you may be wonder “what are the pros and cons of passive investing vs active investing?”

The reality is that you will be most fulfilled when you choose the strategy that works the best for you.

“And what strategy is that?” you ask.

Look at some of advantages and disadvantages we have listed down below to help you make your decision.

If you are reading this article you probably know the benefits of investing in real estate as an asset class. Given that understanding we will focus our review of negatives and positives more directly on the differences between active vs passive investing.