Investment in real estate plays a vital part in an investment portfolio. People tend to diversify their portfolios and real estate investment provides valuable diversification. There are certain risks associated in real estate investment. It is cash intensive, time consuming and vulnerable due to fluctuating interest rates. Investors should learn from past market scenarios and know when to make the right choices. Real estate offers direct ownership unlike other assets. Private real estate deals are popular among investors as risk of sole ownership can be avoided. Another option for investors is real estate investor trusts (REIT). REIT’s are usually publicly traded companies investing in real estate through purchasing properties. Risks include cost and tax implications and declining net asset values of REITs’ in case of rising interest rates.  To know more, please follow:

http://www.dailyfinance.com/2015/05/22/real-estate-investments-risks/