In the last 2 weeks, Bitcoin has been experiencing a downward trend in terms of value.
A market situation popularly referred to as Dip.
This trend is not peculiar to Bitcoin alone as it has spilled into other altcoins. For example, in the last 7 days, the Binance coin has lost about 60% of its market value compared to the month of April. In fact, the global crypto market cap decreased by over 20% in 24 hours between May 21st and 22nd.
The value of this decrease has been estimated to amount to $1.31Trillion. This means that a huge loss has been incurred by many cryptocurrency traders and investors.
How safe is real estate investment?
From 2013 till date, real estate has ranked as the top investment pick for the majority of Americans, according to Gallup’s annual Economy. Putting real estate ahead of stocks and mutual funds, savings accounts, gold, and bonds as the most preferred investment.
Although it may be the top investment pick, how safe is real estate investment? Just like any investment, real estate investing has risks.
For example, if you buy a property at a time when property demand is high, there may be a risk that you will sell it for less than the original purchase price because the value decreases with changes in the real estate market. This can cost you more money than you would make renting a property.
This means that as a real estate investor you must always be aware of these dynamics understand and follow developments in the market economy and how it works, and prepare in advance to be able to predict any downturn in the real estate market. This will help you determine whether buying an investment property at any given time is a good investment decision.
However, comparing the losses recorded in the dipping of cryptocurrency, it is safe to say that some risks are shared by every investment in an asset class and there is always demand for apartments in good and bad economies, so real estate is considered low-risk.
In our subsequent post, we will discuss other possible risks in real estate investment.
Have any thoughts, please share in our comment section below.
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