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Liquidity of Real Estate and What You Should Consider

Visit our Website It is very important for an investor to consider expected yield and liquidity before investing in a real estate asset (land, buildings and estates). Any asset that can be ex-changed for money has a certain level of liquidity. During your ownership of real estate, the yield (rent) creates revenue and cash flow. However, your ability to sell your real estate at a reasonable price and in a timely manner is determined by liquidity. So what is liquidity? Liquidity describes the ease at which an asset or security can be quickly bought or sold in the market without affecting the asset’s price. Money or cash is considered the most liquid asset because of the ease of exchanging it for other goods or services, while real estate, securities, fine art and collectibles are all relatively illiquid. Typical order of asset liquidity are currency, securities (stocks, bonds and treasury bills),Precious metals (Gold, Silver, Palladium, platinum etc.), real estate and A...