This is true of almost all investment.

( Naked Ape call me Caitlyn, Fri 11 Jun 2010, 15:58, 1 reply, 16 years ago)

Yes but you don't have to spend all your money in one or two places.
You can spread the risk a lot better with nearly every other type except maybe hedge funds.
(PsychoChomp, Fri 11 Jun 2010, 16:02, Reply)

It doesn't work like that.
one property value won't crash while another property rises, so you can't consider one property to be the equivalent of one companies' shares. One property is more like the equivalent of one stock market, so spreading shares around isn't lowering your risk compared to property, just lowering compared to putting all your money in one company.
( the mighty badger Aphrodite, on a bar stool, by your side, Fri 11 Jun 2010, 16:06, Reply)

there are local house price falls though
every time a new block of flats opens etc.
But it's not the variation in average house prices that's the biggest risk it's the flood/fire/structural problems that make properties a risky investment.
(PsychoChomp, Fri 11 Jun 2010, 16:09, Reply)