Top 5 Reasons · Episode 006
You can own something valuable and still not be able to realise it when you need to.
Liquidity is easy to overlook — it doesn’t show up until you need to convert the asset back into cash.
1. Not every buyer wants every property.
A specific property narrows the pool to buyers who can afford it and see it as the right fit.
2. The price of owning property is sometimes paid when you need to sell it.
With time, you can wait for the right buyer — without it, your options change.
Liquidity has a value precisely because time has a value.
3. What it’s worth isn’t always what you can realise.
A valuation reflects what an asset is worth under a given set of assumptions. Realising it requires an actual transaction — and the two don’t always match.
4. Liquidity can disappear for everyone at once.
When market conditions change, buyers can become more cautious and financing can tighten.
The asset hasn’t necessarily changed. The number of people willing and able to buy it may have.
5. How much liquidity you need depends on you.
A long investment horizon can make illiquidity easier to accept. A shorter one can make it more consequential. Liquidity is not only a property characteristic. It’s an investor requirement.
An asset doesn’t need to be liquid. It needs to be liquid enough for you.
The real question isn’t whether you can sell — it’s whether you can sell on your terms, within your timeframe.
Our advice: consider liquidity before you commit, alongside the decisions that shape your investment.
The return you see is only part of the investment. The ability to realise it matters too.
If this question applies to your own situation, we are happy to talk it through. Start a conversation
The episode as published
