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Real estate investment comprises the purchasing, possession, management, rental or sale of property property for gain. The housing market, such as commercial real estate, residential real estate, industrial property and property development, can be quite explosive. Real estate values are affected by a number of factors such as location, condition, value, demand, taxes, amenities, attitude of the surrounding community, neighborhood legislation, finances and legal problems. It is extremely simple to become trapped in the hype of the real estate market when times get rough or when you are making an investment decision. Before you dive into the housing market, you have to do your study, understand the dangers involved, know what it is you are searching for and above all, know your limitations.