Buying real estate as a capital investment serves to rent out the estate to generate profits through rental income. Both commercial properties and private properties such as condominiums or houses are suitable for this.

Real estate is a popular investment with real value. This rise in popularity can be attributed in particular to two reasons: the current low on the interest rate market and the upward trend on the real estate market.

If you visit Real Vantage at https://www.realvantage.co/, you will find very solid choices for real estate investment with fractional ownership of the property, fully managed global property handling and quality investment grade deals, as known as co-investing. You can create an account and search for all kinds of real estate investment options.

According to your choices, you can deposit the relevant amount and then start the investment process. At the time of your investment, an investment manager will be your guide. For proper tracking of your investment, you can receive updates as well.

Best Interests Rates and Best Level of Services

The low interest rates make investment property attractive in two ways. On the one hand, it enables better conditions when taking out real estate loans. As a result, more people are able to afford property.

At the same time, other asset classes, such as government and corporate bonds, are becoming less attractive due to falling yields. Due to the lack of alternative investments and in search of the highest possible return, investors are also increasingly investing their assets in real estate.

  • In addition, current developments, such as urbanization and rural exodus, suggest that the prices for investment properties will rise in the future in fast-growing cities. According to this trend, properties in these locations will then become long-term, lucrative investments.
  • Whether you invest in a single-family house, a semi-detached house or an apartment building, the decision depends on the sum of the investment that is made as well as your personal preferences and expectations.
  • The investor also has the choice between an existing property or a plot of land on which a property of their own choice can be built automatically.

What are investment properties?

Investment real estate is one of the oldest and most well-known investment opportunities. Investors who invest their capital in real estate are speculating on long-term growth in value. They want to protect their assets against inflation and generate long-term cash flow in the form of rental income.

The cash flow is used to repay a loan taken out, to make necessary investments in the property, or it is available as so-called free cash flow. As in other asset classes, there are riskier and less risky investment opportunities in real estate.

To assess the risks, various factors are considered, such as the purchase price-rent ratio (also called factor), the condition of the property, the macro and micro location, where the property is located and possible scenarios for how it could be used in the future.

Since there are sometimes significant differences from region to region, even within a location, it is not possible to make a general statement as to what is a risky or a less risky property.