Real estate Risks in buying a real estate property

Alexandoy

VIP Contributor
Real property is a good investment if you know the proper way of buying. First is the location, should be free of floods, the environment is safe and the roads are passable. There are nice residential villages but the access road from the main road is full of shanties being the dwelling of informal settlers. There’s also the risk of having rebels in the vicinity which is a big issue here. If the property has a house then a carpenter should check for the potential repairs and the existing pests too. When it looks good then you can buy it. Expect the value to increase after 5 years.
 

Jasmine

VIP Contributor
There is risk every where. No investment is 100 percent secured. However, the truth about real estate is is is less risky compared to other investment areas, share market investment for example. The only draw back of real estate investment is you might have to wait for many tears to earn return on your investment
 

sincerem

VIP Contributor
I wouldn't go on and buy real estate property that is lacking security, good roads, lacking power supply, and low population count. I'll go for real estate property that has the aforementioned things. Those features makes an individual settles down fine, because it doesn't make sense to enter into a given location and find out that security is very poor, very poor road and entrances etc. That's why survey is very much important in order to cut off the risk, and save the money for better option than wasting it blindly.
 
D

Deleted member 28127

Guest
I wouldn't go on and buy real estate property that is lacking security, good roads, lacking power supply, and low population count. I'll go for real estate property that has the aforementioned things. Those features makes an individual settles down fine, because it doesn't make sense to enter into a given location and find out that security is very poor, very poor road and entrances etc. That's why survey is very much important in order to cut off the risk, and save the money for better option than wasting it blindly.
Sometimes the lacking power supply is due to age especially if you are speaking about an old house means the age is a factor means if you buy an old house the lacking power supply is a frequent problem because all the house needs maintenance but buying a new house with same specificities may have the same architecture and everything is at a good but the price is expensive and then comes the role if you have ready budget to pay the difference or buy a cheaper and old house but pay money at maintenance fee because some buyers don't accept that you pay the money for 6 months part or 12 months and needs a ready buyer with the full amount of money.
 

sincerem

VIP Contributor
Sometimes the lacking power supply is due to age especially if you are speaking about an old house means the age is a factor means if you buy an old house the lacking power supply is a frequent problem because all the house needs maintenance but buying a new house with same specificities may have the same architecture and everything is at a good but the price is expensive and then comes the role if you have ready budget to pay the difference or buy a cheaper and old house but pay money at maintenance fee because some buyers don't accept that you pay the money for 6 months part or 12 months and needs a ready buyer with the full amount of money.
I got your message. When it comes to new apartment and old house, their is bigger difference. The new and modernized building will have all the amenities or features that makes it attractive. Like, having power supply, conducive environment, comfortable living rooms and lounge. And the location will be around a marketable place and the purchase amount will be kinda expensive. When it comes to old houses then the reverse is the case here, and the purchase amount is low.
 

Sotherefore

VIP Contributor
To me I do not consider those things as a risk but I just consider it as something an individual really need to be careful about to avoid making mistake because it can be avoided with proper research and investigation, when investing in real estate it is always important to carry out all the necessary research about all these things before proceeding in buying and making all arrangement, lack of proper research in whatever we are doing will always result in buying and investing in the wrong project.
 

Realekom

Active member
Anyone going into real estate investment must be careful and selective, there are risk in real estate, but can be avoided if properly done.
Before purchasing any property, is adviced you go through the areas and know the condition of the environments.

Most real estate properties are situated in the swamp and mainly sold in the winter season, this is because the buyers will not notice is a swamp, but with thorough research and investigations you can escape that risk of flood during rainy season.
Another risk in real estate investment is purchasing a property in the den of thieves and criminals, they mostly end up chasing out the owner of the property which then becomes a waste of money to the buyer.
 
Top