Inflation. High inflation can significantly reduce the profitability of your investment. This is especially true during the construction phase, when the cost of materials and services can increase significantly
High mortgage rates. Increased lending costs negatively affect the profitability of properties and reduce liquidity
Liquidity. If a property is located in a disadvantaged area or has an inconvenient layout, this can significantly complicate its renting or selling, which will lead to the freezing of your capital.
Force majeure and legislative changes. Changes in legislation, especially those related to mortgage programs, can significantly affect demand in the real estate market. There is also always a risk of force majeure, such as natural disasters or changes in tax laws, which can lead to additional expenses.
Tax risks. Taxes on rental income, property taxes and taxes on the resale of real estate can significantly reduce your profit.