What Are the Risks of Investing in Real Estate?

Every investment carries risk, and real estate is no exception. Common risks include market downturns, vacancies, maintenance surprises, and rising interest rates that affect financing and profitability.

In my experience, most of these risks can be managed with preparation and strategy. Buying in strong locations, maintaining cash reserves, and avoiding over-leverage are key defenses. Real estate rewards disciplined investors who plan for the long term and stay adaptable. The biggest risk isn’t owning property — it’s owning property without a plan.