The risks in property development are:
1. Insufficient own capital to fund the project.
2. Over-leverage and excessive borrowings.
3. Poor sales for various reasons - poor location, industry related reasons.
4. Cyclical downturn.
Many property projects are launched in the cyclical upturn of the industry. Soon many more jumped in the game. When the cyclical downturn comes, the weaker developers suffer.
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Monday, 27 May 2013
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