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    Risk in Real Estate Investment?

    By cooldude | December 28, 2013

    Real Estate InvestmentThe risk factor is synonymous with real estate business from the beginning. Risk is something which the proprietor should be ready to take regardless of anything. Real estate deals with the buying, renting and selling of land, something which not everybody is capable to handle or accustomed to handle or in the position to handle. There is various kind of risk involved with real estate investment, here are such few:

    In case of direct ownership by an individual the profits can be shared by the proprietor alone and the decisions too can be taken alone; if the profits are taken by a single person then needless to say if there is loss, which too needs to be taken care of by that individual alone. That’s where the major risk comes from. In case of properties being handled by partners there is a chance that your partner may not be so financially stable that he may be able to share the loss with you. Apart from that he may not have the managerial skills or renting skills and may be prone to bad decision making. His methods of improvement may not be in alignment to yours which makes matters even worse. Publicly traded real estate investment trusts are the ones where you blindly adhere to the company who is doing good and invest in them. The drawback of this kind of investment might be that if the company falls the entire amount of your investment might be a sheer waste.

    There are times when these real estate planners just come out to you from nowhere and offer a plan that is just 100% beneficiary to you; these are the times when you need to look out for people with the intention of conning you. Investing in foreign real estate too is a risky business as fluctuations in currency prices.

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