What are the advantages of investing in real estate in 2019?
Are there any advantages in investing in the real estate market in 2019? At first sight, real estate investment can look like a risky investment, however, for your consideration, we can show you some investment platforms as well as some of the advantages of it.
1. Real estate price increase
Due to the increase in the property’s prices in the Euro Zone and the European Union, the profitability perspectives in the real estate market has been increasingly strengthened.
A study was made by INE – Instituto Nacional de Estatística, in the first trimester of 2018, the house prices increased by about 12,2% (the biggest increase in the last 8 years). This growth not only exists in the acquisition of real estate but also in the level of the lease, so it can be concluded that this is a great time to invest in the real estate market in Portugal.
2. Financial products Investment
Do you want to invest your money efficiently in order to have a good saving account? Think of real estate investment, the typical long-term deposits that are already used do not have the desired return and many times it is almost nil. If you want to save money in the future, reconsider if that is the best option for you because the interest rates are increasingly lower.
3. Different ways to invest
You have multiple ways to invest your money:
- Real Estate investment funds: this kind of investment requires a necessary time to gain a financial return, but it is dedicated specially for the ones who don’t want to think about tenants or property sales. You have a passive participation in the whole process. (consult all laws relating to this subject here).
- Real estate crowdfunding: this is an alternative to bank financing that does not require high- and high-risk investments. This option starts to stir in the Portuguese real estate market and tends to grow in the coming years. In Portugal, there are two platforms - Housers and Crowd Portugal – and in each one of them, you can consult all the investments types.
- Traditional real estate: investing in a property on your own is a riskier investment, however, you can count on qualified help from real estate agents, who will guide you in the best way, for a safe and auspicious business. To stay abreast of all advantages to have a real estate agent by your side, please check this article.
4. Real estate investment viability
The assets applied in the area of real estate, at the moment are very viable. By investing your money in a property, you are investing in something physical and visible that you have the ability to control, depending on the state of the market. This sector, unlike the well-known stock exchange (which can lower the value of its shares in a quick and unexpected way), is currently at high tide and is not expected to slow down overnight, giving you the opportunity to consider the best investment time.
Take into consideration the geographical areas to invest – this is important to guarantee a healthy financial application. Large urban centres like Lisbon and Oporto or touristic areas like the Algarve are a winning investment. So, once you have chosen the area where you want to invest, think about whether you want to build something from scratch or invest in something already built. (for more clarifications about this subject, check this article.)
The trend for investment in the real estate sector is in a great performance and will always be a good sector to invest your money unlike the actions of the stock market, where you invest in something physical that you can receive a profit or simply the initial investment.