I just did a post saying that there are risks in RE investing. Of course many people do not like to see the risks.

However not seeing the risk does not mean that there are NO risks…

There are risks like falling rents, zero appreciation, very low rental yields coupled with low appreciation, tenant not being able to pay rents, tenants not wanting to pay rent on time, tenant refusing to vacate.

There are times when a low rent in the neighbhoring flats makes the tenant call and re-negotiate rents – all these are high tension activities and can hurt the overall deal.

read on what is happening in Gurgaon

http://www.business-standard.com/article/specials/the-rent-crash-114051501019_1.html

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  1. one more risk in investing in real estate came recently to my notice. many times we found the old flats are available at good discount to its intrinsic value (i mean, the value of underlying land cost +depreciated construction cost of the flat). but recently , in surat ,in one 19 yrs.old multistoried residential building (though looking good nicely maintained) , the slab of one 7-8th floor got collapsed while replacement of floor tiles in progress, and subsequently due to its weight the lower level floor flats’s slabs also got collapsed.so one should consider such risk also.

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