{"id":32930,"date":"2022-01-04T09:57:50","date_gmt":"2022-01-04T09:57:50","guid":{"rendered":"https:\/\/adamfayed.com\/?p=32930"},"modified":"2024-05-16T07:41:02","modified_gmt":"2024-05-16T07:41:02","slug":"what-are-the-risks-in-property-investment","status":"publish","type":"post","link":"https:\/\/adamfayed.com\/es\/real-estate\/what-are-the-risks-in-property-investment\/","title":{"rendered":"What are the risks in property investment?"},"content":{"rendered":"<p>Escribo a menudo en Quora.com, donde soy el escritor m\u00e1s visto sobre temas financieros, con m\u00e1s de 422,4 millones de visitas en los \u00faltimos a\u00f1os.<\/p>\n\n\n\n<p><strong>En las respuestas que figuran a continuaci\u00f3n me he centrado en los siguientes temas y cuestiones<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What are the risks in property investment?<\/li>\n\n\n\n<li>Do the wealthy always have advantages over average people?<\/li>\n<\/ul>\n\n\n\n<p>Si quieres que responda a alguna pregunta en Quora o YouTube, o est\u00e1s buscando invertir, no dudes en<a href=\"https:\/\/adamfayed.com\/es\/#contact-me\">&nbsp;p\u00f3ngase en contacto conmigo<\/a>, correo electr\u00f3nico (advice@adamfayed.com) o utiliza la funci\u00f3n de WhatsApp que aparece a continuaci\u00f3n.<\/p>\n\n\n\n<p>Fuente de todas las respuestas: p\u00e1gina Quora de Adam Fayed.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"what-are-the-risks-in-property-investment\"><strong>What are the risks in property investment?<\/strong><\/h4>\n\n\n\n<p>One of the best videos I have seen recently was titled:&nbsp;<strong>Over 100,000 Brits just lost their whole life savings. Here&#8217;s why<\/strong><\/p>\n\n\n\n<p>For those without the time or inclination, to watch the video, he makes a basic point.<\/p>\n\n\n\n<p>There was a tragedy in the UK called the Grenfell Tower fire:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.fs.quoracdn.net\/main-qimg-134e5ef6c6abc9360a31772cbc644122-lq\" alt=\"\"><\/figure>\n\n\n\n<p>People were killed. Action was taken to reduce the risk from bad cladding, which was blamed for the disaster.<\/p>\n\n\n\n<p>There is only one issue. Many people live in housing with such cladding, even though most don\u2019t catch fire.<\/p>\n\n\n\n<p>After the new regulations came in to tackle the issue, many people can\u2019t sell their homes unless they spend 30k+ on the improvements.<\/p>\n\n\n\n<p>Let\u2019s see if there is enough uproar to ensure that the government decides to help these landlords and families.<\/p>\n\n\n\n<p>The point is, housing is an illiquid asset, which is heavily regulated to a greater extent than many other investments because of how sensitive it is.<\/p>\n\n\n\n<p>This move is the latest move in the UK, after numerous new taxes were bought in in the last ten years or so.<\/p>\n\n\n\n<p>The government wants people to save for pensions and old age, to reduce the burden on the welfare state, and they have many tax incentives to do so.<\/p>\n\n\n\n<p>Similar tax advantages don\u2019t exist for property, and higher rates of capital gains taxes have been bought in specifically for the asset.<\/p>\n\n\n\n<p>It isn\u2019t just in the UK either. In Japan, and many other locations, governments cracked down on landlords using Airbnb.<\/p>\n\n\n\n<p><strong>Other risks include<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Long-term underperformance versus other assets, especially if you buy in the wrong location.<\/li>\n\n\n\n<li>Using too much debt. The ability to leverage is one of the advantages of property, but too much can be fatal. If we see interest rates rising again in 2022, we will once again see some landlords go bust.<\/li>\n\n\n\n<li>Buying in a bad location. Location, location, location works the other way around.<\/li>\n\n\n\n<li>Hassles, and costs in terms of time. Time should be factored into any return on investment calculation.<\/li>\n\n\n\n<li>Less flexibility and freedom to change locations if a new job comes up.<\/li>\n<\/ul>\n\n\n\n<p>Property can be a good investment, for some people, at some times. It can also be cheaper than renting in some locations, especially if you stay long-term.<\/p>\n\n\n\n<p>It isn\u2019t the case that people can\u2019t lose with it though.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"why-do-the-rich-have-a-vast-advantage-over-the-poor\"><strong>Why do the rich have a vast advantage over the poor?<\/strong><\/h4>\n\n\n\n<p>That is the assumption. It isn\u2019t always as black and white though. The book below makes some excellent points.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.fs.quoracdn.net\/main-qimg-05c761a19273604860ac621ed203e126-lq\" alt=\"\"><\/figure>\n\n\n\n<p>This goes beyond money and more speaks to \u201cadvantage\u201d.<\/p>\n\n\n\n<p><strong>Consider some of these points made in the book<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>In general, smaller armies often beat bigger, stronger ones, especially if they focus on strengths such as gorilla warfare. Look at the Afghans. They did well against the US, the Soviet Union, and Alexandre the Great.<\/li>\n\n\n\n<li>People assume that small class sizes are always better. That is one reason why parents pay for private education. Numerous studies actually show that very small, or very big, class sizes, can be worse than somewhere in the middle. A class of say 18 can easily beat one of 6.<\/li>\n\n\n\n<li>Smart kids who go to Harvard, Oxford, and other top universities, are more likely to drop out if they are less intelligent than the average kid in the class, compared to a student who is at the top of a weak university. What is more, sometimes those kids who came near the top of the class at weaker universities, end up earning more. This seems to be because people compared themselves with those around them, which leads to people who are inside the one percentile of intelligence feeling stupid due to the superior abilities of classmates.<\/li>\n\n\n\n<li>Despite the last point, so many people still think we should get poorer, and ethnic minorities, into certain schools and jobs, even if that means lowering the boundaries through positive discrimination\/affirmative action. Often these well-meaning policies have the opposite effect to those intended.<\/li>\n\n\n\n<li>Many small, nibble, start-ups can beat established brands in some areas. They have the advantage of speed.<\/li>\n\n\n\n<li>In terms of wealth, there is a saying in Chinese that \u201cwealth seldom lasts three generations\u201d. Similar expressions exist in other languages. The only group of people who seem to escape this fate, apart from outliers, are those who can\u2019t directly control the wealth. For instance, royal families and some old wealth put the money in trust, so it can\u2019t all be spent or mismanaged at once.<\/li>\n\n\n\n<li>Wealthy families have certain disadvantages when dealing with offspring unless care is taken. For instance, most kids learn not to ask their parents for an expensive car at age 18, or a pony, as they know it is unaffordable. Teenagers from wealthy households won\u2019t accept the \u201cwe can\u2019t afford it\u201d line, and a broader conversation is needed. Keeping those kids motivated is also trickier.<\/li>\n<\/ol>\n\n\n\n<p>The point is, being wealthy is a big advantage compared to being very poor. However, it isn\u2019t always an advantage over being middle-income.<\/p>\n\n\n\n<p>Sometimes an inverted u-curve exists:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.fs.quoracdn.net\/main-qimg-1086daab805ed44dfc132caf0f2fd600-lq\" alt=\"\"><\/figure>\n\n\n\n<p>A simple example is this. It isn\u2019t easy to read to your kids at night or play sports with them if you are exhausted from poverty and working three jobs.<\/p>\n\n\n\n<p>It also isn\u2019t easy if you are a workaholic who has a lot of money and is in a high-pressed situation.<\/p>\n\n\n\n<p>It is actually easier for somebody who is somewhere in the middle.<\/p>\n\n\n\n<p>This is, even more, the case for the second or third-generation rich. The first generation tends to be motivated as they came from nothing. That isn\u2019t usually the case with those who come after.<\/p>\n\n\n\n<p>Basically, wealth up to a certain point opens up so many doors. It helps with security, personal freedom, your health, freeing up time, giving you more choices, etc.<\/p>\n\n\n\n<p>It usually also helps the first generation a lot, and it is much easier than being in a cycle of poverty which gets more difficult to get out of the longer you are in it.<\/p>\n\n\n\n<p>There is a reason why so many people don\u2019t want their kids to inherit much though.<\/p>\n\n\n\n<p><strong>\u00bfLe duele la indecisi\u00f3n financiera? \u00bfQuiere invertir con Adam?<\/strong><\/p>\n\n\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/become-adams-client\/\">Convi\u00e9rtase en mi cliente<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/good-match-quiz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Realice el cuestionario de elegibilidad de clientes<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">P\u00f3ngase en contacto con<\/a><\/div>\n<\/div>\n\n\n\n<p><strong>Adam es un autor reconocido internacionalmente en temas financieros, con m\u00e1s de 830 millones de respuestas en Quora, un libro muy vendido en Amazon y colaborador de Forbes.<\/strong><\/p>\n\n\n\n<p><a target=\"_blank\" href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fadamfayed.com%2Fwhy-is-it-that-rich-people-have-their-money-work-hard-for-them-but-poor-people-work-hard%2F\" rel=\"noreferrer noopener\"><\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>What are the risks in property investment?<\/p>","protected":false},"author":1,"featured_media":64629,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10166176115445471_100883565069113":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[11545],"tags":[],"class_list":["post-32930","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate"],"_links":{"self":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/32930","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/comments?post=32930"}],"version-history":[{"count":2,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/32930\/revisions"}],"predecessor-version":[{"id":86738,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/32930\/revisions\/86738"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/media\/64629"}],"wp:attachment":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/media?parent=32930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/categories?post=32930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/tags?post=32930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}