Recently, the financial world showed the risk of investing in stocks and funds. On the other hand, safer traditional savings account brings almost nothing. Shortly you have to pay more tax on their investment income. Even in times of economic and financial crisis, real estate investment is still more profitable. The value of your investment capital increases over long-term ownership and in itself can give you income. Which will result in financial security and peace of mind?
Investing in real estate has a higher yield than interest rate of savings account
The interest rate on your savings account is not very high, and depending on the economic situation sometimes inflation will exceed a fixed term return. One of the best ways to stretch your savings is to purchase an investment property. With a good buy, you will see an increase in capital value and rental income fill your bank account. On the average, the annual yield of a property is 7 to 8 percent in the long term.
Investing in properties creates additional income with rent
Investing in real estate is like hitting two birds with one stone. Your property investment is increasing its long-term value and because it can enjoy a fixed monthly rental.
Real estate is a safer investment than the stock market
The share prices fluctuate drastically, and the financial sector regularly comes up with a range of new investment products and complex systems with uncertain or minimal returns. People who don’t want to worry about their investment choose to secure their future with investment properties. Clearly, this type of investment has lower yield compared to more volatile and high-risk investment, but after acquiring two properties or more, you will see its capital increase because of rental income and the value of investment property increases long-term.
Real estate is more secure and has better interest than pension and insurance funds
Retirement and insurance funds are solid investments, except during a financial crisis! History taught us that retirement and insurance funds are not always immune to the global financial crisis. Would you like to leave some capital to your loved ones? Then you better choose to invest in properties.