Not exact matches
Real estate has special risks, including the possible
illiquidity of underlying properties, credit risk, interest - rate fluctuations, and the impact of varied economic conditions.
But to take it a step further, I prefer equities because
real estate doesn't provide a sufficient
illiquidity premium to merit the leveraged risk and transaction cost.
There are special risks associated with an investment in
real estate, including the possible
illiquidity of underlying properties, credit risk, interest rate fluctuations and the impact of varied economic conditions.
To cite an example, the market for commercial
real estate (CRE) is generally recognized as being highly inefficient, due to its relative
illiquidity, unpredictable pricing, high transaction costs, geographical segmentation, and informational opacity.
In fact
illiquidity is the catalyst of significant wealth meltdowns seen in
real estate investors who leverage aggressively when the lending freezes up.
Yes, it's true that the
real estate transactions costs and
illiquidity can be costly for
real estate buyers, but 6 % load fees, lockup periods, 20 % hedge fund fees, and 9 % margin rates haven't stopped stock speculators either.
One of the major problems this share has is its
illiquidity — it is virtually impossible to buy a decent number of them without paying well over the odds and this is a really hard problem to solve, Hence waiting a couple of months and having a good marketing push may not do much to improve the share price — although it has improved a bit since the annual results and the AGM statement there has not been any great volume behind it and therefore no
real upward momentum.