In this case, I describe how an apparently attractive residential investment turned into a long-term lesson about legal status and irreversible risk. Despite strong rental income and a functional apartment, the asset’s legal classification prevented insurance, bank financing, and future resale flexibility. Months of effort revealed that changing the status was legally impossible due to structural planning requirements. This case highlights how liquidity vanishes silently, why higher yields often hide risk premiums, and why first-time investors are especially vulnerable to assuming that documentation can always be fixed later.
When “I’ll Fix It Later” Becomes Permanent
Case example$14.90
This case explores how buying a property with the wrong legal status can quietly destroy liquidity, financing options, and exit flexibility. What looks like a cheap residential investment can become a permanent structural risk. A firsthand account of why legal classification matters more than appearance, yield, or optimism.
