Is Real Estate Ever a Risky Investment? - GreenResidential.com Blog

Abstract

All these are great benefits that are undeniably true, but is real estate ever a risky investment? All Investments Come With Risk First, we need to acknowledge that all investments come with risk. There's no such thing as an investment with no risk. No matter how much experience you have or how carefully you plan your decisions, all your real estate investments will come with at least some risk. The questions are, how much risk is there and are you willing to tolerate it? Risks to Consider These are some of the most significant risks you'll need to consider when investing in real estate: Property depreciation. One of the biggest risks faced by new investors is the possibility of discovering hidden issues in the properties you purchase. Your Personal Risk Tolerance Keep in mind that there's another variable you should consider when calculating and thinking about risk: your own personal risk tolerance. The key to being a successful investor is understanding which risks you're willing to tolerate and which ones are too much for your strategic objectives.