5 reasons why investing in real estate is synonymous with success

Posted On Tuesday, 28 December 2021 20:21

The economic effects of the coronavirus pandemic have turned the real estate market upside down. 

Thus, in a sector in which renting has been so strong, the possibility of investing in the purchase of housing has burst in with great dynamism. 

The new circumstances and some of the characteristics of these operations make them very attractive in the short and medium term.

In a context in which the intention to buy has equaled the intention to rent, we have carried out an analysis by virtue of which it extracts five reasons why it believes that, at this time, investing in real estate can be a good operation.

If most real estate deals are too big for your pocket, you can also consider investing in real estate crowdfunding. This is usually the best option for small investors.

  1. 1. Seize the moment

Given that some landlords are starting to divest themselves of their landlords in view of the coming economic crisis and with the aim of obtaining, it may be a good time to find opportunities at a good price. 

A point to value here is to obtain, if possible, housing in consolidated areas and where demand is stable, since it makes it possible to recover the investment through renting, which is still on the rise (although with its first drops in the big cities).

  1. 2. Housing never fails

The eternal nature of housing, which is an essential asset and therefore always has a market, makes it a kind of safe haven. 

Even in times like the present, there are always reasons to buy a home: priority is now given to satisfying needs that the pandemic has shown were not being met, both in first and second homes.

  1. 3. The influence of new construction

The supply of housing is also recovering, and a good proof of this is the increase in new construction, which provides an extra attraction for future buyers: they adapt more easily to the new needs that have arisen in recent months.

  1. 4. Riding the wave of demand

After the confinement and the arrival of the new normality, the real estate market has been, little by little, recovering. 

This has led to an increase in demand, which can be translated into real possibilities for sale-and-leaseback, as interest seems to be starting to settle.

  1. 5. A 'safe' profitability

The real estate market, according to our study, has moments of depression, but it always returns to a point where it provides a certain profitability in housing investment. 

Thus, just as profitability increased in the years following the toughest part of the 2008 crisis, it is expected that, sooner or later, home purchases will soon pay off.

  1. 6. Conclusions

Also the current commercial sector offers very interesting investment opportunities, mainly focused on the generation of income, since they provide stability and solidity to the company that decides to invest in them. This investment can be applied to all types of real estate, regardless of their size, whether they are buildings, commercial premises, hotels, supermarkets, etc.

All of them are considered to be profitable real estate and can generate great income for investors.

Nowadays, investing in profitable real estate is more stable, reliable and beneficial than any other current form of investment, since the profitability offered by banks is minuscule and investing in the stock market without excellent knowledge can cause volatility due to spontaneous ups and downs in a market of uncertainty.

That is why we want to highlight the value of investing in profitable real estate, especially if we take into account that many of these properties are empty, in very good locations and at a very affordable price.

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