The 6 types of risks in real estate

[Augusta]

When you go into Real estate investment, like any other investment you would be confronted with risks that you would need to be aware of so that you wouldn't be taken unawares. The potential types of risks in the real estate industry are:

Market risk: This risk is about the current price of the asset you have. Will the matket be against it or for it at a given time

Operator risk: This is a risk of the kind of operator you would be using. Can this person help you succeed with your real estate business

Location risk; As the name implies you would be having the risk of location of asset whether good or bad
.
Asset risk: This is a risk on the kind of asset you would be investing in whether a building, land etc

strategy risk: This is on the kind of strategies you would be adopting at the time to succeed

financial risk; You would be faced with financial risk which will be on the amount of money you intend to invest in the Assets

What's your thought?

 

[maywarren]

I consider that in investing in real estate are more than 6 types of risks.

 

[Suba]

Basically every business will have risks, it also applies to the real estate business, both by internal and external factors, so real estate business people must pay attention to the risks that may occur, real estate entrepreneurs must especially pay attention to maintenance costs, real estate depreciation and risks. natural disasters. In addition, entrepreneurs must also pay attention to purchasing power risk (due to inflation), Capital market risk, liquidity risk, Environmental Risk, Legislative risk, etc.