IS INVESTING IN REAL ESTATE RISKY?
In many parts of the United States, homes are currently selling for more than their purchase price. In this situation, if a person buys a house for $100,000 and sells it for $105,000 six months later there would be a profit of $5,000. This is not a riskless investment however because there are always factors that can potentially go wrong with any decision in life. Tilbygg Kristiansand
Many people who are involved in real estate investment are unaware of the dangers of the product. Others believe that real estate is a safe investment because they see history repeating itself. There are many myths and misconceptions about investing in real estate on both sides. Totalentreprise Kristiansand
The first myth that I want to dispel is the notion that investing in real estate is riskless. It is easy to forget about certain major issues such as market fluctuations and economic downturns. Markets are always fluctuating, and real estate is no exception to this idea. In addition, the economy as a whole is changing and so there are new goods and services that will be required in the future. As the economy slows down, the demand for some things increases while demand for other things decreases. Even in what appears to be a recession-proof market such as self-storage there are still problems that need to be addressed. https://byggfirmaunhjem.no/totalentreprise-i-kristiansand/
Another misconception is that real estate is a “sure thing.” Many people have this notion because they see history repeating itself. This can be seen in the housing market, which has seen a rapid rise in prices and then a decline over the past few years. As of 2010, the median price for single-family homes was $189,500. In 2008 the price for single-family homes was $169,400. https://en.wikipedia.org/wiki/Investment
While it is true that real estate holds its value better than other investment vehicles, it is not riskless. It is also not a sure thing and can suffer greatly as a result of downturns in the economy. Real estate investing is one of the best ways to build wealth over time, but only if you do your research and know exactly what you are doing.