Property is an asset class that some retail investors understand better than others, but it brings its own risks as well as some substantial benefits.
Many investors already have exposure to property through their main residence, and commercial property is frequently a constituent of diversified portfolios. It is easy to visualise and it offers a relatively attractive and stable income stream. Perhaps most importantly, it brings diversification relative to bonds and equities. Property sector doubles cash amid industry's liquidity crisis Unfortunately, it also carries risks. Some are tangible, such as the risk of income falling, or of a property slump leading to lower capital values and yields, but one is dependent on how we inves...
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