Investing money can be done in many ways. Simply saving in these times of low interest rates does little to help, also investing in the stock market involves high risk. If you are looking for a good, interesting and reliable way to invest your money, you will undoubtedly have heard of investing in real estate by now, and with good reason!
Investing in real estate is seen by financial experts as the alternative to buying shares on the stock exchange. That partly has to do with the added value of the property in which you invest. You can more or less assume that the property you put your money in will increase in value over the years.
However, the first dilemma of investing is to obtain the necessary capital first. For the average investor, capital is translated to “savings” accumulated over the years. However, the decision to use the savings or part of it is not easy. In addition to the difficulty of collecting these funds, the investor may not have the opportunity to create similar savings in the future if he loses them. So, what is the solution? New technology could have innovative solutions to this dilemma! For example, you can enter the Arab top casino 888 to learn about profitable casino games from which you can get considerable profits to use in your various investment activities.
Investing in Real Estate = Investing in a Prime Location
Real estate is a product with a large market. Therefore, the value of this product depends on many factors. You may think that the space is the most prominent of these factors, but this is not true at all, as the property’s location is the main factor in its pricing.
Below we have outlined the most important standards that determine the value of a property when selling or renting it:
· In the vicinity of public transport (bus, metro or train) and shopping centres;
· Near or in the centre of major cities;
· Close to (international) companies, (European) institutions and/or school campuses;
· Successfully investing in real estate to rent out to expats in prime locations;
· Surrounded by cosy squares and picturesque alleys, with cafes and restaurants;
· Within walking distance of beautiful parks and/or historical monuments.
After following the above factors, you must raise the quality of the property’s interior, which is a strong asset when renting or selling the property.
· The high-quality and modern (investment) apartments with trendy interiors for investors who want to invest in real estate that is profitable;
· Creative and stylish architecture that offers lasting added value for the future;
· Finished with carefully chosen, sustainable and innovative materials.
What Are the Target Customers?
· Investors, who want to invest in real estate that is safe and profitable;
· Intermediates or seniors, who are looking for a comfortable, safe and adapted home, with a terrace within walking distance;
· Newly working singles who decide to live with a friend to keep costs down;
· Couples who want to live innovatively according to the latest trends and want to taste the bustling city life;
· Expats or international business people, who wish to live comfortably close to their work in a foreign country
· Students who want to live and study comfortably close to their student campus or school.
The housing market in major cities consists primarily of tenants. Therefore, the capitals and big cities are the ideal locations to invest in real estate if you are looking for an investment apartment.
Investing in real estate also means that you become (co-)owner of a property. You can rent out your share and generate income that way. And please note: these are incomes that will continue to run forever. After all, renters pay you their monthly charges. You can then use that money again to pay off the mortgage, for example. Or, if you have big plans, invest further in other real estates.
Compare that to buying shares on the stock market. You only get profits when you buy a stock at a low price and then sell it when its price surges. However, the opposite is possible as the stock value may decrease. Furthermore, do you make money during the period between buying and selling? Of course not! Your money will remain frozen in the stock until you sell it to another company or investor. So, you can’t invest further. Therefore, investing in real estate is also an excellent way to spread your wealth. You also run less risk as a result.
Returns of Investing In Real Estate
You will understand from the examples above that an investment in real estate guarantees an excellent return. In addition, it is less sensitive to inflation. This is because stones are a hard asset. When inflation rises, hard assets generally rise with it. The value, therefore, remains at least the same or even generates more profits.
Compare that with the return you get when you put your money in a savings account for a longer period. Again, you cannot do anything with your money in the meantime, such as further investments. In addition, it is highly questionable whether the return in the form of interest outweighs inflation. Is your money in a savings account really worth more? That is almost certain when investing in real estate.
Last but not least: interest rates are currently historically low, making entry more attractive than ever. So whether you are a professional investor, junior or senior, newly working single, couple: now is the time to invest in real estate! Anyone can do it, but a few do.