A major misconception about investing in real estate is that it is automatically always safe. Investing in real estate has the reputation of being a good choice by default. It is 'safe' to put your money into a physical building. This is true in principle, but it requires some nuance. Investing in real estate is safe when you take a number of things into account.
In this article we will do our utmost to bring you fully up to date. This will enable you to actually invest in real estate safely. Without taking unnecessary risks and making things more difficult for yourself than necessary.
What to look out for when investing in real estate safely?
In principle, investing in real estate is a good choice. Certainly now that there has been high inflation for some time, saving money does not yield much. In fact, in many cases, people lose money doing this. At the same time, the stock market is quite unstable. Especially in times of crisis, it is difficult to put your money in a safe way. Investing in real estate has historically been a good choice. People simply always need somewhere to live. But as said, this requires some nuance. We highlight this in a number of points:
- Choosing certain markets: A first point of attention is to choose certain markets. As a whole, the real estate sector is a fairly secure market. However, within this sector itself, you still have considerable differences between different markets. Take, for example, the difference between metropolitan areas and the countryside. One obvious development is that house prices in metropolitan areas are rising rapidly. Faster than in almost any other area. Your choice to invest in real estate in a big city is then soon a lot safer than real estate in less crowded areas. Chances are that after a while you will make more returns.
- Compare prices: In addition, there are great differences between specific buildings and projects. That is why comparing prices is such a good idea. Why, for example, is one piece of real estate more expensive than another? Are you really getting value for money? Comparing prices in an orderly way creates a lot of overview. For example, via a portal site such as Immoweb or Zimmo. You will soon be able to distinguish the good options from the lesser ones. In practice, a good choice can very well save you several thousand euros. In the end, that is good for everyone.
- Working with reliable parties: Do you want to invest in real estate in a safe way? Then make sure that you only work with reliable parties. For example, research the experiences that different investors have with certain parties. Or make enquiries with specialists in the field. It is possible to discover within a relatively short time whether a party is reliable or not. Given that some investors have been swindled out of thousands of euros, this is certainly worthwhile. It will give you a much safer feeling about any investment you ultimately decide to make.
- Diversify: Finally, there is always risk involved in investing in real estate. However small it may be in practice. That is why it is useful to diversify as much as possible. By spreading the risk, the chance of a major setback is minimal. One way of diversifying is by investing in different properties in different sectors and areas. Even if there is an unexpected depreciation in value in one area, you will not suffer greatly from this. The other investments then provide a nice profit. Looking for a property investment? Read more about it here how to find a property investment.
Keep these points in mind one by one to invest safely in real estate. Especially with the traditional way of investing in real estate, these points apply.
On the other hand, there is also a new, innovative way of investing in real estate. As this is considered extra safe, we will pay specific attention to it here.
The safest way to invest in real estate
The safest way to invest in real estate is in many ways Invest in Immotokens. But what does it mean exactly? And why is it so safe?
With Immotokens, it is also possible for you to become a property owner within minutes. This has everything to do with the rise of blockchain technology. This makes it possible to create digital versions of real estate, tokens. These digital versions then serve as proof of ownership of (part of) real estate. Since digital versions can be divided into several parts, we work with Immotokens.
With just €50, you are able to purchase an Immotoken, which makes you part owner of real estate. Just like a real estate owner, you will receive rent and your property will probably be worth a lot more after a while. Moreover, your investment does not have to remain at €50. You invest as much as you feel comfortable with.
Why Immotokens are extra safe
Now you may wonder why this is so safe. To answer that, let's revisit the earlier argument about diversification. It became clear that this is the way to spread risk. For example, by investing in different properties in different areas. With Immotokens, this is easier than ever!
It is very easy to ensure diversification in your real estate portfolio. Simply choose Immotokens from different properties. There is no need to invest thousands of euros or take out huge loans. As I said, with just a few €50s you can diversify your risk into multiple forms of real estate.
So do you think this form of investment is very attractive? Especially because it is such a safe way of investing in real estate? Then discover now the investment opportunities and experience how you can become a full-fledged property owner in just a few minutes!
