Planning the future is thinking about the best ways to invest money. Security, liquidity, return … you need to analyze every detail well before making a decision on where to apply. Historically, real estate is one of the most traditional forms of investment. It is the type of business made for those who want to avoid headaches due to fluctuations in the financial market without giving up profit.
Do you want to understand more about this type of investment? Continue reading our post and discover 10 reasons to invest in real estate.
1 – IT IS A SAFE INVESTMENT
Aligning investments with the level of risk is a strategy widely used by investors who seek to minimize financial losses. At this point, we have high-risk investments and low-risk investments.
Investment in the real estate market is considered to be one of the safest types. This is because, when buying an apartment, commercial room, or house for sale in Abbotsford BC, you are acquiring a physical asset (can be seen and touched), which tends to appreciate over time and also cannot be easily stolen or taken, as it happens with goods like cars or jewelry.
Notice: in all the activities of our life, there is always a property involved: a place to live, to work, to exercise, to do the shopping of the month … What does that mean? That even in a period of crisis, there will always be a demand for real estate. This is a type of investment that is immune to bank failures and sudden falls in the financial market, which cannot be frozen by the government, such as savings. Investment in real estate in undoubtedly the historically most stable form of investment, and is among the least risky investments available on the market.
2 – INCREASE IN EQUITY
Safe and durable investments are all about building an equity. Companies and people who invest in asset formation have real estate as one of their priority investment lines.
3 – RESISTANCE TO TIME
Real estate is durable goods. Its use occurs over the years, lasting for generations. Houses and apartments can become a source of income for your children. Whether on sale, rental or even to avoid rent. In other words: if you decide to keep the apartment for life, leave it as a legacy to your children. When they receive it, they have the same chance to use the property and pass it on to the next generation.
4 – POTENTIAL SOURCE OF INCOME
Investing in real estate allows you to generate passive income – a kind of salary that does not depend on your effort. And as much as many people strive to buy a property, we know that several will not succeed. For this reason, there will always be a demand for a good property to rent – a demand that rarely decreases, even in times of crisis.
5 – GOOD CHANGES IN RENTABILITY
Whoever invests in real estate, does not look for any property in any location. And good properties in good locations usually bring good profitability. When choosing something in an area with high appreciation rates, the tendency is that, over time, the value of that asset will increase steadily and significantly – without having to worry about market fluctuations.
6 – VALUATION POTENTIAL
Real estate investments give better results in the medium and long term. In more or less time, the property will appreciate. Depending on the macroeconomic context of the moment, the degree of appreciation may be higher or lower.
7 – LIQUIDITY
It is reassuring to know that your assets are liquid and can eventually be easily sold and turned into cash. To do this, always look for properties that have relevant differentials for residents – and that is usually more valued in the market.
8- LEAVE RENTAL
Does the cost of housing consume an important part of your earnings? This uncomfortable situation affects not only financial life but all aspects of the daily life of those who live on rent. The payment of the rent is a terrible investment since the money only temporarily resolves the issue of living and never returns to the tenant.
9 – DIVERSIFICATION
Having a diversified investment portfolio reduces investor risks. In this sense, having a part of the money allocated to real estate is interesting even for those who prefer to invest in the stock exchange – either directly, buying a property or condo in Abbotsford BC, or indirectly, through real estate funds.
10 – INFLATION PROTECTION
The INCC (National Civil Construction Index) is a kind of price inflation index for the civil construction sector. He is the indexer responsible for the readjustments in the installments of the purchase of an apartment, in the value of rents, and other payments and transactions in the real estate market. Those who invest in real estate directly protect the purchasing power of their money.
We are suspicious to speak, but whoever is considering making any type of investment, needs to consider investing in real estate. With attention and good research, you will find good opportunities for differentiated properties, good locations and with excellent liquidity.
We are suspicious to speak, but whoever is considering making any type of investment, needs to consider investing in real estate. With attention and good research, you will find good opportunities for differentiated properties, good locations, and excellent liquidity.