No investment opportunity does not come with risks. The same applies to the Real estate sector. Nobody knows this better than Kevin Bratch, his vast experience and knowledge in this industry have taught him great lessons.
Apart from the benefits that come with such investment options, even though they say in investment circles that great risks come with great rewards, investors should also be on the lookout for potential risks, which might bring about great anxiety, stress, and uncertainties in this market segment. Investors should adequately prepare in case such situations occur.
The first kind of risk understood very well by Kevin Bratch that any real estate investor should understand is known as the General Market Risk. Under this risk, investors should understand that every investment under the sun has its good and bad times as per the dictates of market forces such as inflation or interest rates. It is best to prepare on how to go about it in case the worst happens and the best thing to do is diversification of investment portfolio.
As Kevin Bratch puts it, the level of risks concerning assets normally involves the equitable distribution of risks. In terms of real estate, even in bad times, there will be considerable demand for property. Be it office spaces, or residential apartments. Liquidity risk simply means that investors should take an in-depth of the property market trends. This gives clarity on when, where, and how to invest in this segment.
Apart from this, it will also guide any investor on how to develop an exit strategy in case things become unsustainable in the long run. Credit risk is measured by the ability of the property to generate income in terms of leasing. However, even the most trustworthy tenant can end up being broke. So what happens to both the property owner and tenants in such times?
Kevin Bratch is always on call to help investors make sober decisions for their real estate ventures.
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By Kevin Bratch - Real Estate Investor
Nobody knows this better than Kevin Bratch, his vast experience and knowledge in this industry have taught him great lessons.
