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.
It is very easy to understand those who constantly advise investing in real estate, because Robert Kiyosaki also advised this in his books. But the thing is that most of these advisers lived before the global financial mortgage crisis.
The modern world dictates that one must have comprehensive knowledge in all areas of assets in order to invest with the greatest profit and the least risk.
We can't just invest in crypto or just houses. We need to have at least 2 different assets.