What two factors determine the risk of investing in property?

The risk of investing in property is significantly influenced by current market conditions and the location of the property. Current market conditions encompass various aspects, such as economic factors, supply and demand dynamics, interest rates, and overall market trends. These conditions can directly impact property values, rental income potential, and investor confidence.

The location of the property is equally crucial because it affects demand, accessibility, and desirability among potential buyers or renters. A property in a thriving neighborhood may appreciate in value more rapidly than one in a declining area. Factors such as local amenities, schools, crime rates, and economic growth in the region play a vital role as well. Thus, understanding both the present market climate and the specifics surrounding a property's location helps investors assess the potential risks and rewards of their investment.