Reduce your investment risk
Property, like all investments, has potential risks. At Fruitful, we take a strategic approach to risk management. This includes developing personal risk management strategies with our clients to make their money work hard at minimal risk. The major potential risks of property investment include:
- Price risk: Property prices can go down as well as up.
- Interest rate risk: Interest rates can both rise and fall.
- Property developer risk: A property developer may go out of business, or the completion of a development may be delayed (only relevant to off-plan property).
- Maintenance and upkeep risk: Properties always require maintenance and management.
- Cash flow or Rental risk: There may be periods when the property purchased may be vacant (i.e. without a tenant) or during which rents fall below expectations.
- International risk: Every country has inherent legal, political, currency and economic risks. The level of these risks varies significantly by country.
Understanding these risks and having a clear risk mitigation strategy is an essential part of any informed investment decision. We can help you minimise the risks of property investment. Contact us to find out more.