One big concern with real estate is that properties are extremely undiversified investments that have high transaction costs, high holding costs (taxes and maintenance), and low liquidity.
The example of Amsterdam's housing prices comes to mind as an example of the risks of undiversification. Various accounts say that here has been no appreciation in house prices since 1736[1] or that it has only doubled in 350 years [2,3].
The example of Amsterdam's housing prices comes to mind as an example of the risks of undiversification. Various accounts say that here has been no appreciation in house prices since 1736[1] or that it has only doubled in 350 years [2,3].
[1] http://curiouscapitalist.blogs.time.com/2007/11/14/house_pri...
[2] http://www.finfacts.ie/irishfinancenews/article_1019261.shtm...
[3] http://papers.ssrn.com/sol3/papers.cfm?abstract_id=598