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Questions and Answers
What is macroeconomic risk in the context of investing in property?
What is macroeconomic risk in the context of investing in property?
- Market movements and property-specific risks
- Fluctuations in property prices due to investor behavior
- Market movements and macroeconomic shocks that impact property returns (correct)
- Global economic trends and property location-specific risks
What do investors consider when evaluating macroeconomic risk?
What do investors consider when evaluating macroeconomic risk?
- Asset type and current market trends
- Leverage ratio and property management
- Market conditions and potential for recession (correct)
- Property location and historical returns
How do investors compensate for the risk of entering a recessive market?
How do investors compensate for the risk of entering a recessive market?
- By seeking higher returns for the investment (correct)
- By diversifying their property portfolio
- By reducing leverage and increasing property value
- By focusing on short-term investment deals
What happens to the value of a property if the exit cap rate increases?
What happens to the value of a property if the exit cap rate increases?
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How does a recession impact the likelihood of getting paid rent for a property?
How does a recession impact the likelihood of getting paid rent for a property?
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What impact does a market downturn have on the availability of capital to refinance loans?
What impact does a market downturn have on the availability of capital to refinance loans?
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