The father of my colleagues invested heavily in real estate. Immediately after he retired from his job, he invested his entire retirement benefits in real estate. And he kept expanding the business by building more houses. My co-worker usually tells me that real estate is the best investment because of less risk. It is common for him to say that he or his father will never invest in Bitcoin because it has high risk.
There was a flood in a section of my country that destroyed lives and properties. His father lost about seven blocks of flats which is all he has in life. The houses were not issued, so he is totally broke.
Lessons
- Diversify your assets. Don't invest all you have in a single asset.
- If you are investing in real estate, let your properties be in different locations. My friend's father lost all his property because they were in the same place.
- insure your assets and businesses. Insurance can help reduce the effect of a loss.
This is all very complicated and the example also does not fully cover all the positive and negative aspects of investing in real estate. The first thing you pointed out is that all the property was concentrated in one place. Even if it is within the same city it could have been distributed across different districts and that alone would have been better.
On the other hand everything depends on the capital you are able to invest. There are many investors who put huge amounts of money into real estate and the profits they get are enough for them not to even think about investing in bitcoin. That is their choice and if it works for them then why not. Diversification is very important for any investor and it seems that your friend’s father was not an experienced investor since he only started doing this after retirement. But I have nothing against investing in real estate. In my opinion it is a good investment option that can preserve value well. I also support investing in bitcoin because I understand how good this asset is and what kind of profits it can bring.