Real Estate Portfolio Diversification: Don't Put All Your Eggs in One Market

If all your properties are in one city, you're exposed to local risk. A factory closure, a new zoning law, or a market downturn affects everything at once. Portfolios spread across 2-3 markets show 25% less volatility.

The Formula

Diversification isn't just about geography. Consider: property type (single family, duplex, apartment), tenant type (family, professional, student), and price range.

Real-World Example

Start your second market by researching cities within 2-3 hours drive. You want to be able to visit. Look for: population growth, job diversity, landlord-friendly regulations, and cap rates above your current market. In Canada, consider expanding from Montreal to Ottawa, or Toronto to Hamilton. In the US, Midwest cities offer higher yields than coastal markets.

The Bottom Line

Mozongi REMA's geographic allocation charts show exactly where your money is invested by country and city. You'll see concentration risks at a glance.