- How Much Money Is Needed To Invest In Rental Property?
- Should A Real Estate Investor Get An Agent’s License?
- 5 Big Factors That Affect The Costs Of Renovating Your Home
- SIBOR Hike – What You Can Do With Your Current Loan
- 6 Basic Don’ts Of Real Estate Negotiation Tactics
- Will New Condo Relaunches Trigger The Great Property Sale We Have All Been Waiting For?
- 10 Proximity Amenities That Add Value To Real Estate
- How To Get Personal Loans More Easily With Good Credit
Downside Risk
Downside risk refers to the risks potential of losing money on an investment.
Losing money can refer to different things and can even carry different meanings to investors.
The most common downside risk for property investments are:
- Depreciation in value
- Vacancy
- Less rental income than expected
- Construction delay
- Misrepresentation on the part of seller
- etc
It can sometimes also referred to as downside potential when investors ponder over whether to get involved in an investment.
Downside risk is something that every investors would have to think over when buying rental property.
This is because properties that don’t perform up to expectations can often be difficult to let go at a price where the initial investment can be recouped.
0 comments