QUESTION 4

Risk is an element to be taken into consideration when investing in real estate where there is a direct relationship between the risk an investor undertake with the return he/she expects to get. Property investment has long been a favorable investment option for many in Malaysia. The number of property investors in the country has been growing for the past two decades as more people seek better financial future for themselves .Average Malaysians will look for properties such as houses (single/double-story terrace/link), apartments/condominiums, retail space, shop lots or land. There are literally a few million units of such properties in Malaysia, but not all real estate makes a good investment. There are many criteria to look at when choosing a real estate, such as location, reputation of the developer, type of property, pricing, accessibility, infrastructure and public amenities. There are also many different strategies for investors on how to choose the best property for investment. For example, some people look for yields or cash flow, while others eye capital growth potential over the long term. Like other investments, real estate does not come without risks. Return on investment is never truly guaranteed, thus understanding the types of investment risks in the market is crucial.

Based on the statements above, what are the worst risks in real estate investments did you think?