Investing in real estate

When investing in real estate, one quickly thinks of an apartment by the sea or a vacation home abroad. But, of course, the investment offer is much broader than that.

Investing in real estate is a popular choice because of its stability and potential long-term returns. Real estate investments offer a tangible and valuable asset, allowing investors to benefit from both capital appreciation and rental income. Real estate market behavior often exhibits a slower and less volatile pattern compared to other asset classes, making it attractive to investors seeking stability.

In addition, people who invest in real estate benefit from tax advantages such as depreciation and mortgage interest deductions. Generating passive income through rental income is another motive behind real estate investment, as it can provide a steady stream of income. In addition, real estate offers diversification opportunities for investors who want to diversify their portfolio and not be completely dependent on stock market fluctuations.

The growing population and increasing demand for housing also contribute to the attractiveness of real estate investing. For many, real estate is a tangible and understandable form of investment, making it accessible to both experienced investors and beginners. In short, investing in real estate combines stability, potential returns and diversification, making it an attractive choice within the investment world.

'Investment real estate remains particularly value stable'

Inflation in recent decades has never been as high as it is today. Nevertheless, within the current economic context, investing in real estate as a form of investment still remains very interesting. 'Real estate remains one of the most inflation-proof investments,' explains Wouter Dekemel of Alides REIM.

Property offerings in Investment property

Below is an overview of the range of real estate on offer in Investment Real Estate at home and abroad.

The full real estate offerings at Immowatchers can be found here.

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Why invest in real estate?

People invest in investment real estate for a variety of reasons because of the many benefits it can provide. Here are some of the reasons why people choose to invest in real estate:

Capital Growth

Real estate investments have the potential to increase in value over time. As demand for real estate increases, prices can rise, allowing investors to realize capital growth. This can lead to profits when the property is sold at a later date.

Passive income

Real estate can provide a stable source of passive income. By renting out a property, the investor receives rental income on a regular basis. This income can be used to cover the cost of the investment and even generate a profit.

Diversification

Real estate can be a valuable addition to a diversified investment portfolio. It offers a different category of investment than, say, stocks or bonds, allowing for a better spread of risk. In addition, within the real estate investment category there are also different forms: residential real estate, commercial real estate, student rooms, vacation homes, second homes, hotel real estate, operating real estate, investing in parking lots, ...

Inflation Resilience

Real estate is often seen as a "store of value" that can help fight inflation. During times of inflation, real estate investments tend to increase in value, helping investors maintain their purchasing power.

Here are the 4 reasons why real estate is considered inflation proof: Why is real estate inflation proof?

Leverage or leverage

An interesting aspect of real estate investing is leverage. Leverage is an important concept in real estate investing and refers to the use of outside capital, such as a mortgage or bullet loan, to finance a larger investment than what you could do with equity alone. This allows investors to buy a larger property with relatively small equity. As the value of the property increases, the investor can sell the property and pay off the mortgage, making a significant profit. If, in addition, the repayment of your loan is lower than the rental income you receive, again we speak of positive leverage.

Tax benefits

In many countries, there are tax benefits associated with real estate investments. These include mortgage interest deductions, depreciation on the property and opportunities to offset expenses against rental income. These benefits can increase the net return on the investment.

Conclusion - Investing in real estate

However, it is important to note that real estate investments also carry risks, such as market fluctuations, maintenance costs, vacancy rates and legal issues. It is therefore essential to conduct thorough due diligence and seek expert advice before deciding to invest in real estate.

Also read about the different types of investment real estate.

Relevant articles on investing in real estate

Below is a listing of articles on real estate investing.