In trading people sometimes say that you only lose if you sell. Meaning that if the position goes down and comes back up again and you hold through it, then you don’t lose anything, except time and liquidity. Because if you suddenly needed cash, then you would be looking to either lose some money or waiting for the price to go back up.
Things are similar also in real estate. Prices predictably move upward in the long term, so there would be no incentive to sell a property, right?
However, unlike other markets, the property has some inherent running costs which need to be paid regularly (bills, maintenance & repair, etc.). So if you end up not being able to meet those costs, then you have a problem.
Therefore when making an investment make sure you have a margin for the price change and you are still able to cash flow through tough times.
Wish you a great day. ♥ Smile & Be present! 🐝 Invest in cashflow & Real Estate ♥