- When calculating the potential profits, keep in mind the costs involved to maintain the property/land.
- Difficult to liquidate - You can’t sell in a hurry
- Can be horrible, clunky and chunky investment due to the maintenance costs involved.
Costs to keep in mind
- Maintenance costs
- Property taxes
- Brokerage
- Insurance
Why are the property prices inflated?
- Due to cash in the system
- Real estate is a very popular dumping ground for illegal money (cash).
Risks
- Someone may capture the land if you do not monitor it
- If there is a very good crackdown on corruption, illegal money will disappear and real estate prices will sink
Sources