Risks of Investing in REITs

Risks of investing in REITs gives potential investors an overview of the dangers of such investments. The biggest risks associated with real estate investment trusts (REITs) are over-leveraged balance sheets, market risk, declining property values and property specific pitfalls. Gain further guidance about these key risks of investing in REITs by reading below.

Like every investment, REITs come along with their own individual risk factors. The most prevalent risk factors are: Over-Leveraged Balance Sheets, Market Risk, Declining Property Values and Property-Specific Risks. REITs face key risks that are important for investors to be aware of, however these risks should not scare potential investors away. REITs also come with their fair share of advantages that other investments do not provide. REITs are a unique investment, so it is crucial for potential investors to do their research.

Source: Dividend Investor

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