Not always Profitable, Here Are Some Property Investment Risks You Need To Know

BONSERNEWS.com – The property business promises huge profits, so it attracts people to invest in property for rent or resale in the future to get the benefits.

Growth in the number of residents and new families is the main factor that makes more and more players in the property business. Even though it looks attractive, property investment also has risks.

Reporting from various sources, here are four property investment risks that you need to know about before you decide to start.

1. Lack of liquidity and money stagnate

The more liquidity goes up, the profit you get will of course also go up. However, this does not apply if the liquidity you get is not as expected.

In other words, the more liquid an investment is, the easier it is to sell or exchange it for money. Lack of liquid has become a common thing for property investors.

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For this reason, potential investors who think about the long-term impact, namely the money that has settled.

Even though this investment will be very profitable in the future, you need to know and learn about the types of property investment.

2. Large capital

Property investment is different from other investment products such as stock investment, gold investment or mutual fund investment which can be started with a small amount.
You have to spend a large amount of capital to start investing in property.

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The money spent to buy the property is relatively large, moreover land prices tend to increase every year. This also applies to property investments such as apartments that require hundreds of millions to billions of rupiah in capital.