Low liquidity in the real estate Business

[Ralphjoe]

Liquidity has to do with the ability to quickly convert an asset to cash, it's very important as it gives am asset trust and credibility making more and more people to want to invest in the asset.

The real estate Business has-been suffering the issue of low liquidity for ages now, it's a problem that no one has been able to solve for a long time now, believe me some people don't want to invest into real estate because of this issue, once you buy a property, all your money will be pumped into that property until you are able to sell it off, now selling it off may take quite a long time to do. Imagine you are in an urgent need of cash at that moment, it poses as a big problem to read estate Business. How can this problem be solved folks, let's reason together people.

 

[Sariana23]

You are absolutely right about the lack of liquidity of the properties. It is difficult to solve this problem, since in the sale of a home there is no specific period so far. It would be good in this case to have government or bank support, that they absorb the properties in cases of proven emergency.

 

[Highflyer]

Property has the lowest liquidity
are also deemed liquid because of their low acquisition costs, lack of complex legal arrangements and ease of transaction. Real estate is one of the most illiquid assets because it requires more capital to buy than securities or precious metals for example.Land and real estate investments are considered non-liquid assets because it can take months for a person or company to receive cash from the sale. ... While liquid assets can be easily sold for cash and have a stable market price, non-liquid assets cannot be quickly sold for cash and prices can be much more volatile.

 

[Janita]

Property has the lowest liquidity
are also deemed liquid because of their low acquisition costs, lack of complex legal arrangements and ease of transaction. Real estate is one of the most illiquid assets because it requires more capital to buy than securities or precious metals for example

 

[Shole1]

Uh this is a though one. If you know where to invest your profits will be doubled. If you have enough to buy a good house and redecorate it you can sell it for a lot, but you have to work hard to do so.
I don't think the market is so liquidised, and besdes propierty value is rasing in most cities.

 

[singlej007]

Low liquidity will continue to be a problem in the real estate business because of how the real estate market is, people don't rush to purchase property, the do there due diligence first, confirm necessary information about the property before moving ahead to buy. Mostly those procedures may take time... So low liquidity is an issue.

 

[Rimsha kanwal]

Liquidity has to do with the ability to quickly convert an asset to cash, it's very important as it gives am asset trust and credibility making more and more people to want to invest in the asset.

The real estate Business has-been suffering the issue of low liquidity for ages now, it's a problem that no one has been able to solve for a long time now, believe me some people don't want to invest into real estate because of this issue, once you buy a property, all your money will be pumped into that property until you are able to sell it off, now selling it off may take quite a long time to do. Imagine you are in an urgent need of cash at that moment, it poses as a big problem to read estate Business. How can this problem be solved folks, let's reason together people.

Property has the lowest liquidity
are also deemed liquid because of their low acquisition costs, lack of complex legal arrangements and ease of transaction. Real estate is one of the most illiquid assets because it requires more capital to buy than securities or precious metals for example.

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[Alexandoy]

Real estate is a long term investment. Unless you are into real estate business of buying to sell then investing in a lot or a house will take years before you can extract a good profit. However, the upside is that the value of real estate had never went down. Maybe it will have a lull in the industry but the value would still be rising continuously. Our home that we bought for 1.6 million is not being valued at 7 to 8 million. That's for 19 years of investment.

 

[Richard92]

Low liquidity in real estate occurs due to the the location of the real estate business, government policies, and also the kind of investors in the real estate business. Sometimes cover policies affect the funding of real estate projects negetively and may affect bank loan policies.

 

[Afrinish]

The real estate Business has-been suffering the issue of low liquidity for ages now, it's a problem that no one has been able to solve for a long time now, believe me some people don't want to invest into real estate because of this issue, once you buy a property, all your money will be pumped into that property until you are able to sell it off, now selling it off may take quite a long time to do.

 

[giddy]

The relatively low liquidity of real estate, compared to securities, can be attributed to the difficulty in its evaluation rather than lower demand. It's hard to create a system that can accurately and quickly evaluate price considering the wild variety ofproperties on the market

 

[Nurudeen]

Low liquidity is one of the biggest problems investors do have in the real estate business. If you think you fall into this category and you are sure of the property you want to put your funds into you can just seek for a loan from any finanacial Institution or even seek for governt grants of you have access to it.

 

[Adebayonle7]

Low liquidity in a real estate business means that your asset might either be in the wrong area or managed and marketed in the wrong way or with the wrong approach. Although this is not true to all areas. All areas are fruitful but development in areas differ from time to time and for areas with low development level, they will certainly take more time to convert to cash. Target areas with enough population and infrastructure. Acquiring the assets might be at a high cost but no matter how high, it can be realized at a single sale.

 

[Trexxxy]

I agree with you, this is one of the disadvantages of the real estate business, the fact that you can liquidize fast enough because of the nature of property and should people discover that you are trying to sell quickly, they might think you are desperate and want to buy far less than the actual worth of the property.

 

[Bilal0087]

Liquidity has to do with the ability to quickly convert an asset to cash, it's very important as it gives am asset trust and credibility making more and more people to want to invest in the asset.

The real estate Business has-been suffering the issue of low liquidity for ages now, it's a problem that no one has been able to solve for a long time now, believe me some people don't want to invest into real estate because of this issue, once you buy a property, all your money will be pumped into that property until you are able to sell it off, now selling it off may take quite a long time to do. Imagine you are in an urgent need of cash at that moment, it poses as a big problem to read estate Business. How can this problem be solved folks, let's reason together people.

Yes brother you a absolutely right, in the real estate business, massive investment is needed and for getting high profit you have to wait for long time ij order to avoid this situation, you should save some money from the profits to use in emergency times, and don't buy lands with your savings.

 

[Setfragil]

Liquidity is very important in every business most especially in real estate business. Converting your properties to cash when there is an urgent needs for cash is something that can happen to anyone. Some properties that were actually bought overpriced will be difficult to easily turn to cash because of the depreciating value which will make people price it far lesser than normal.

 

[Richard92]

Liquidity is very important in every business most especially in real estate business. Converting your properties to cash when there is an urgent needs for cash is something that can happen to anyone. Some properties that were actually bought overpriced will be difficult to easily turn to cash because of the depreciating value which will make people price it far lesser than normal.

there is no liquidity in the real estate business because most people do not have finance to carry out the business because it involves a lot of business and starting up and also maintenance.

 

[Ralphjoe]

Liquidity is very important in every business most especially in real estate business. Converting your properties to cash when there is an urgent needs for cash is something that can happen to anyone. Some properties that were actually bought overpriced will be difficult to easily turn to cash because of the depreciating value which will make people price it far lesser than normal.

And this is also in addition to the problem of low liquidity which meant most real estate properties are very difficult to quickly convert to cash and so will discourage a lot of people from investing in such kind of business. I know a lot of people that have put their property for sales for years now and there are no buyers for the property and this has led to them reducing the price of their property even below cost price of the property.

 

[tyrim88]

This has been a major problem in the real estate sector,and can be rightly termed a low liquid venture,this is due to the nature of the industry.houses does not easily sell like the common commodity in the market,this is due to the capital intensive nature of the investment and the investor need to have a legitimate need ton buy such property.

 

[Haveit]

Land and property is a fixed asset so it definately would be difficult to turn to cash in a short time unlike current assets which is why agents are available to make it faster and easier for land owners to sell.