Property investment – How much risk are you willing to take?
Thursday, October 8th, 2009
Property is like any form of investment, where the greater the risk you take the more potential you have to make greater profit. Ultimately how much risk you take my depend on where the money you invest has come from, and to what degree of trouble you would be in if you were to lose it!
What time scale are you working on?
The time scale you are working on will affect the level of risk you may need to take to see a positive return. Where there are many safe investments that will make a nice return over a period of 5 to 10 years, there are very few that are risk free for a period shorter than 12 months. It is my opinion that property investment should be seen as a long term strategy for profit.
Spreading Risk
One way to reduce the risk involved in an investment is to spread that risk across several different projects. If you are lacking in capital, …