Question

Are investors underestimating the risk of immobile assets in, sometimes, highly unstable countries?

Are investors underestimating the risk of immobile assets in, sometimes, highly unstable countries?

Homework Answers

Answer #1

Well,

Immobile assets are assets which cannot be moved like land, properties etc.

Since these are not movable a investor cannot take that away to anywhere. Therefore, if that particular unstable country come in a crisis the investor is probable to lose his asset.

There are lots of unstable countries in the world where future of that country cannot be predicted because they may be still facing wars, goons attacks and highly volatile market and currencies. So investments by a citizen or a foriegn investor in an immobile assets will be very risky.

For example) in Syria wars are happening this century also so no one can predict the future and investments in such market conditions is highly risky.

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