Properties have always been an attractive investment, especially in Spain as a popular second-home country, and it looks like the trend is continuing after times of crisis.
Following the pandemic, we can see a monthly increase in sales. There has been a year-on-year growth of sales and mortgages which indicates that the residential sector continues to position itself as an interesting area for investment, even after times of uncertainty.
Here are the four main reasons why the real estate market remains to be one of the safest assets.
1 – A realiable investment
Some investments can fluctuate widely in value however real estate tends to increase in value steadily over time. This makes it an ideal investment for those looking to get the most out of their money over a longer period of time. Real estate is a stable investment as, regardless of what happens in other sectors, people always need somewhere to live, giving investors long-term confidence in their investments.
2 – Tax benefits
There are various tax benefits offered by an investment in real estate which makes real estate a preferable investment over other options, particularly those who are looking to maximise their tax liability.
3 – Potential for high returns
As pereviously mentioned, the real estate investment trend is that investments tend to increase in value over time. However, it is worth mentioning that this does not happen automatically and it is important to have a knowledge of the market and know what you are investing in. Also, the awareness of the time it will take for your investment to increase in value is key to avoid disappointment when investing in real estate as well as being willing to invest enough money into your property to make your investment worthwhile.
4 – Real estate investments can be made your own
Investing in real estate is different to investing in stocks as you are buying something that you can see. There are different factors that affect the value of a real estate investment including location and supply & demand which do not tend to change as dramatically as stock prices making real estate investments more reliable and giving you more control over your investment.