5 reasons to invest in real estate
The investment market is challenging in our reality. We are not entirely sure where to invest (or not) our money. What are the risks and why should we be cautious – these are just two of the dilemmas that can make decision-making difficult. Therefore, to help you understand why and what you should invest in real estate, we have decided to analyze in this article 5 relevant reasons.
Investing in real estate is not an easy task, but over time, it almost never loses its value; instead, it significantly appreciates.
- It is one of the most stable investments available
Compared to the currency or cryptocurrency markets, luxury cars, or luxury products, the real estate market is one of the most resilient. Let’s look back at the evolution of apartment offers available on the market. As you can see, the brief periods of stagnation only lasted a few months at the beginning of the pandemic and during the start of the war in the neighboring country. Otherwise, the real estate market has shown an upward price trend. The complex process of obtaining construction permits in Chișinău, the rising cost of construction materials, labor expenses, inflation, reduced construction work volume, decreased number of newly developed housing units – all these indicators suggest that property prices will not decrease. Consequently, investing in real estate becomes not only stable but also secure, even if there is a period of price correction in the real estate market at the moment.
- The added value of a real estate property is continuously increasing
If you want to acquire a property, for example, from the number of offers for houses for sale, then you should know that they will only continue to increase in value over time. The formula is simple here – in the case of houses on land, not only the dwelling becomes more expensive, but also the land itself, and when infrastructure develops nearby (such as a supermarket, store, restaurant, café, pharmacy, school, kindergarten, fitness club, etc.), the added value of the investment in this property keeps growing.
- The real estate property can be used for various purposes
The difference between a property and any other asset is that the former can be used for any purpose. Whether you live there with your family, rent it out, or convert it into a business location, you have the possibility of getting your invested money back and having a source of regular passive income.
- The real estate property can serve as collateral for further investment
If you have a business in which you want to invest, you can use the real estate property as collateral, which ensures easier access to a loan. In case the space is rented out, the rental income can additionally serve as a guaranteed source for the bank to ensure loan repayments.
- You have a secure future
In the Republic of Moldova, the certainty of tomorrow is a relatively unclear term, and acquiring a real estate property can serve as a guarantee for your pension or old age, a guarantee that is not affected by inflation, theft, or other risks.
Do you want to buy a house or an apartment, but don’t know where to start? Choose to collaborate with an international agency, a global leader in real estate. RE/MAX helps you find the right property for a secure investment!
