The economic crisis generated by the pandemic and the increase in inflation has left many markets in terrible conditions, with industries on the verge of closure, such as entertainment and tourism; at the same time, other markets have had to reinvent themselves to remain attractive to potential investors. In this scenario, many people think that continuing to invest or starting to do so is crazy, but although some sectors have weakened a lot and some have remained, others have been strengthened.
The real estate sector is one of the markets that remained the strongest in the face of the pandemic. In this article, we will review the main reasons why the real estate sector continues to be an attractive market for investment.
6 Reasons to Invest in Real Estate
Below you will find the reasons that we consider most important to start or continue investing in a sector as large and important as the real estate market.
Inflation
The main benefit of this type of investment in decentralized finance (DeFi) is that the capital destined for these investments generates more money for the investor. This fact is more attractive than saving money in the bank since, in addition to having a very low return, our capital is at the mercy of the “invisible tax of inflation. This means that if we save money while the price of products rises due to inflation, our capital will be worth less because we can buy fewer things with it.
In this scenario, investing capital in real estate ensures a return higher than that offered by banks and higher than the level of inflation in most countries, so the capital invested, far from decreasing or maintaining, increases in favor of the investor, thus giving rise to future investments.
Low risk
The economic crisis generated by the pandemic and the increase in inflation has left many markets in terrible conditions. Unlike other markets such as the stock market or the futures market, investing in the real estate sector does not require such extensive knowledge as the aforementioned sectors. It does not imply a rapid variation in investment prices.
Until now, the risk of investing in real estate had been low even though it was an investment with a considerable amount of capital, a risk that has now decreased even more thanks to models such as Reental, which considerably reduce the amount needed to invest while maintaining the profitability of real estate.
Appreciation
A low risk is also related to a medium- or long-term investment, which is the case with an investment in real estate. In the medium- to long-term, the effect of real estate appreciation intervenes, which leads to an increase in the value of a property based on various factors.
Thanks to this effect, it is very likely that the value of the property in which you have invested will gradually increase over the next few years.
stable income flow
As we have mentioned, it is a very stable market, which implies that the dividends received from investments in real estate have the characteristic of being stable, unless you decide to expand your investment, which would multiply your monthly income.
a large and rising sector
The real estate sector in Spain is large, accounting for even more than 10% of the Spanish GDP. In addition to its large size, this market is constantly moving and growing, affected by the population pyramid and the need for new tenants.
weapon against weak coins
To find ups and downs and variations in investment prices, it is not necessary to look at the stock market; in local currencies, it is also possible to see large variations that negatively affect the price of products at the national level. In this sense, real estate investment directly combats the depreciation of local currencies, which tend to be weaker than the euro and the dollar.
Most appraisals are made in euros or dollars, so your capital investment will be safe. But the euro or the dollar are only the second in this difference with local currencies since cryptocurrencies facilitate access to investment for everyone, which implies that the dividends received will be in cryptocurrencies with a value greater than the local currency of the country in which the investment was made.
Inflation is the “invisible tax” that decreases the value of all your saved capital.
Conclusion
The economic crisis generated by the pandemic and the increase in inflation has left many markets in terrible conditions, but those are perfect moments in which to make a quality investment with low associated risks, such as an investment in the real estate sector. Thanks to this, the invested capital will be sure to keep up with inflation and will generate even more money that facilitates a new way of earning an income or even ensures a stable and full retirement.
Would you like to make an investment in real estate with a high return and a low associated risk? Do not hesitate to take a look at our available properties, and if you have any questions, do not hesitate to contact us; we are at your disposal.
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