Real estate investment risks

Real estate income is also a high correlation with inflation. Therefore, real estate investments are made over a long period of time to provide an inflation hedge and real earnings Risks associated with investing in real estate in the future rental depreciation or general property market risk, liquidity, risk and asset lease is primarily to depreciation. There are basic factors that affect the value of a specific property:

Location - the location of the market value of a building that is mainly important as a major factor. For many years, the opportunity to invest in a property in a specific location and glamor, or destruction, can change over the holding period. For example, a town in the area is likely to improve the perception of the place, is undergoing regeneration. On the contrary, the development of a major new shopping center in a quiet, residential properties will reduce the appeal.
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