Yes, it can happen sometimes. Things change all the time and the price of a location may increase.
Can someone lose in real estate?
- Thread starter Niyi Briggs
- Start date
There is no business that does not have a two sides of business duality of lose and gain. Real estate can turn negative if the economy is in spiral fall. Secondly, it can equally be affected by government policies and natural disasters. There is no business or investment that does not have potential of growth and depreciation.
Yes, its true, but for some reason now, in my place now, properties near the sea still expensive but now the mountain area or far from the sea is really high expensive because of save tsunami zone, our city have earthquacke a lot for the past years and theres a tsunami warning if a big earthquacke happens
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Oh, I understand. I didn't know. Yes, tsunami is a big danger, so it is safer to have a property in the mountains.
Why not? You are apartment owner. You rent your apartment but you don't control good residents in it. They can make big damage. If you don't have everything covered with contract, they can go out without paying damage. If damage is bigger than you earned from rent, you losing money. If you want get back apartment in previous state, you must invest in renovation.
i agree with you @IB D real estate is really secure business, as long as we buy it in the right location, like i said earlier, properties in my city is really expensive in the mountains than in the beach area, but the price is really expensive too, people nowdays really understand the early warning system when something bad happens in my city, its not like in 2004 when Tsunami hits Aceh, Indonesia after big earthquake, that day we dont know anything about tsunami, after that our local government put early warning system on the beach, so people will know how to safe themselves
It is true thar earthquakes and tsunamis plus all other natural disasters are the risk factors associated with real estate. With that in mind, one can always check the vulnerability of a location to these disasters.
I believe that security and the availability of social amenities is what matters whenever you're trying to rent a new property.
I understand the danger of tsunamis. Tsunami is a nightmare. In my country, properties in the mountains are cheap but properties by the sea are too expensive.
Yes it is possible to also loose in real estate. Lets say for example the property it self does not loose its value within the years, it is very possible for the location it self to loose value. It could be the roads leading to the property or people not having interest to stay there, this would make renting or selling your property a little difficult and some would even price it below the original value.
We are lucky in my country because we have never experienced tsunamis. It is tragic. I hope that tsunamis will never happen again.
Yes, it is very bad experience, even the tsunami was not in my city but we felt the eartquake, after watching the effect of tsunami from TV, how bad the situasion was, after that everytime we got a big earthquake, we always prepare for the worst, people will see the sea, and after that many people move into the mountains part of my city and its make properties in mountains is expensive now
In my country, properties near the sea are too expensive but properties in the mountains are cheap.
