Investment in real estate – income or insurance of our funds?

Inevitably, there comes a time when each of us starts to consider the best way to invest our funds, seeking to preserve our money with the lowest possible risk and the best possible return. While investing in cryptocurrency and stocks has gained popularity in recent years, when it comes to long-term investments, the most common choice is putting funds into real estate. We dare say that this is perhaps the best and most tested method of investment. Studies indicate that the largest percentage of ready investors turn to real estate because the purchase there is a one-time affair, and especially in developing areas, the risk of property value falling is significantly less.

This is because, although prices in the real estate market vary, it can be said to be relatively stable and very rarely would there be sharp changes. This provides the necessary assurance that the risks of losing our funds are significantly lower, and the potential benefits – much more.

Before we proceed, perhaps it’s good to ask ourselves exactly how would investing in real estate be beneficial to us? On one hand, this is a suitable option for establishing additional or even primary income—if it turns into a business. Whether you plan to rent the property out or resell it after some time when its price has risen, this is definitely a very good opportunity for a passive income generated from your own funds.

On the other hand, investing in real estate can be seen as insurance for your funds. In this way, you will protect yourself against potential negative consequences of changes in the economy, such as inflation, which essentially devalues your money. Conversely, a property is an asset whose actual value will not change, regardless of how much its price fluctuates. However, it is important to mention that the previous statement is valid only under conditions of urbanization because the more the population in villages or smaller towns decreases, the more the value of properties there falls, which in turn cannot guarantee the preservation of your funds.

In addition, there are some factors that have a significant impact on the property value, and whether its price will potentially increase. In other words, merely buying a property is not enough to be sure that the investment will be worthwhile. That’s why at Idea Buildings we always strive to offer properties with optimal characteristics – good location, high-quality materials, and functionality, so we not only earn the trust of our clients but also ensure that their funds are invested in the right place!