Real estate is one of the most profitable ventures. It is also one of the least risky investment areas. Real estate is also one of the best passive income sources. Despite all the good things about real estate, there are also numerous disadvantages of real estate business. One of the major disadvantages is you need a lot of money for investment. Another disadvantage is related to the high risk of fraud. The real estate market lacks central regulation and is usually controlled by real estate builders, real estate companies and agents. Overpricing is one of the most common scam, therefore, you need to be very careful about investing.
Risks in Real Estate Business
- Thread starter Mika
- Start date
The biggest risk can be government seizure, in my country there are a lot of cases where a lot land was seized due to falling in what was dubbed as government territory, those that own those property bought them for $100 thousand of dollars and they have lost it without much compensation from the government.
On the other hand, there is losing value, a land can lose value if it's not developed or there are low value estates, it might make it lose value, its important to take all of these into consideration before you invest your money into the business.
On the other hand, there is losing value, a land can lose value if it's not developed or there are low value estates, it might make it lose value, its important to take all of these into consideration before you invest your money into the business.