I had in mind what I stated. To be successful, an investor in individual rental property either has to be lucky, or has to have the expertise to exploit inefficiencies in the real estate market to generate property alpha to compensate for the concentration risk. It is much more feasible to do that than it is for stocks, but it does take some expertise and knowledge of the local market.What did you have in mind here?
What is true is that one needs a higher return with an individual property than one would get with a broadly diversified real estate portfolio to compensate for idiosyncratic risk.
Statistics: Posted by Northern Flicker — Sun Jan 19, 2025 5:24 pm