Which of the following statements about The Good, The Bad and the Ugly section of the lecture materials are TRUE:

1. One of the problems of property is that there can be a risk of a sharp fall in property prices due to the bursting of a property bubble and an associated recession. If you lose your job in the recession and are forced to sell your home after the decrease in prices, it can wipe out your equity.
2. Some of the good things about buying a home include the control over long-term living expenses and that financial leverage can magnify your return on equity if the return on the asset exceeds the interest rate on any associated loan. Some of the bad things about property include poor liquidity, high fees and lost flexibility.

Neither of the statements are true (both are false)

Only statement 1 is true

Only statement 2 is true

Both statements are true (neither are false)