Real estate
will always have value regardless of the economy. You can suffer gains or
losses, but you will still own the property and it can still increase in value.
However, there are quick ways real estate can fail your investment, especially
if you expect it to earn you much profit in a very quick way.
1.
Project
Abandonment
It logically
follows that investing in a property near malls and amenity areas give a
property a high value. Beach vacation spots make property values improve more, despite
heavy competition. However, disasters and failed investment projects could
devalue the property even more, and if competition abandons the area, your
property will have 80% of its value stripped easily.
2.
Poor
Community Regulation
The city of
London is one of the world’s most expensive cities because of the high value
businesses that continue to flourish in the city. If city regulation decreed a
free-for-all property instalment without any standards in terms of construction
and quality of residents, a neighbourhood could level down the price of your
properties. This is the reason why suburbs normally have a lower value in
properties because of crime rate and lax governance.
3.
Disasters
Beach
vacation properties are not the only ones that could suffer from disasters,
cities could also suffer from grave disasters, and properties near amenities
are the first to be hit by property devaluement. A bigger trouble is
infestation; if city regulation fails at preventing pests from the city, it
could drag down your properties quite highly.
