Why invest in real estate? 6 reasons to invest in real estate

The economic crisis generated by the pandemic together with the increase in Inflation has left many markets in terrible condition, with industries on the verge of closure such as those of entertainment and tourism, at the same time, other markets have had to reinvent themselves to remain attractive to potential investors.

In this scenario there are a lot of people who think that Keep investing or starting to do it is crazy, but although there have been sectors that have weakened a lot and some that have remained, there are other sectors that have been strengthened.

One of the strongest markets that remained in the face of the pandemic blizzard is real estate or real estate sector.

In this article we are going to review the main reasons why the real estate sector remains an attractive market for reversal, and we will also see the figure it takes Reental as a real estate investment platform within this ecosystem.

The real estate sector accounts for 10.5% of Spanish GDP.

6 Reasons to Invest in Real Estate

Below you will find the reasons that we consider to be the most key to starting or continuing to invest in a sector as large and important as the real estate market.

Inflation

The main benefit of this type of investment in decentralized finance (DeFi) is that the capital allocated to these investments is generating more money for the investor. This fact is more attractive than saving money in the bank, since in addition to having a profitability Very low, our capital is at the mercy of the “invisible tax” Inflation. This means that if we simply save capital while the price of products rises due to inflation, our capital It will be worth less, because we can buy less things with it.

In this scenario, invest capital in real estate Assure a higher profitability to that offered by banks and higher than the level of inflation in most countries, so that the capital invested far from decreasing or maintaining, raises in favor of the investor, thus giving rise to future investments.

Low risk

Another of the great benefits of this sector is the low risk What does your investment entail, unlike other markets such as the stock market or the futures market, investing in the real estate sector does not require as extensive knowledge as the sectors mentioned above, nor does it involve a quick variation in prices of investments.

Until now, the risk of investing in real estate had been low, even though it was an investment with a significant amount of capital, a risk that has now lessened even more so thanks to models like the one from Reental, which considerably reduces the amount needed for invest while maintaining the profitability of real estate.

Appreciation

A low risk also relates to an investment to medium/long term, which is the case of investment in real estate. In this medium/long term, the effect of real estate appraisal, which leads to an increase in the value of a property based on various factors.

Thanks to this effect, it is very likely that the worth of the property in which you have invested Increase gradually over the next few years.

Stable revenue stream

As we have mentioned, this is a very steady, which implies that the dividends received from investments in real estate have the characteristic of being stable, unless you decide to expand your investment, which would multiply your monthly income.

Large and growing sector

The real estate sector in Spain is large, assuming even more than a 10% on the Spanish GDP. In addition to its large size, it is a market in constant movement and growth, affected by population pyramids and the needs of new tenants.

Weapon against weak currencies

To find ups and downs in investment prices, it is not necessary to look at the stock market, at local currencies It is also possible to see large variations that affect negatively at the price of products at the national level. In this sense, real estate investment directly combats depreciation of local currencies, which tend to be weaker than the euro and the dollar.

Taking into account that most appraisals are made in euros or dollars, you reversal Of capital will be secure. But the euro or the dollar are only number two in this difference with local currencies, since Cryptocurrencies facilitate access to investment to everyone, which implies that the dividends received will be in cryptocurrency, with a value greater than the local currency of the country in which the investment was made.

Inflation is the “invisible tax” that lowers the value of all your saved capital.

Invest in Reental

In addition to all the reasons we have presented to you, Reental unifies all the reasons to invest in the real estate sector and even facilitates some of these to achieve democratize to the maximum investment in this sector.

Initial investment: The minimum investment of 99€ What we offer is far from the large investments that have always been necessary to buy a flat or a house in the Spanish real estate sector.

Liquidity: Thanks to the liquidity pool What does it offer Reental any investor can make their investment liquid without having to wait to find tenants or sell the house, very common barriers in traditional real estate investment.

Decentralization: Due to digitalization, investment in our properties can be made from anywhere in the world regardless of the location of the property or the investor.

Cryptocurrencies: As mentioned in this same article, investment in our properties can be made in Cryptocurrencies, which implies that the capital obtained through the real estate of Reental is not subject to the decisions taken by the State on depreciation of a local currency, so that the full value of dividends of the investor will not be under the control of any State or Government. This aspect can be very interesting for countries with a high level of inflation such as Venezuela or Argentina.

Conclusion

At the beginning of the post, we commented on the fear that people have to invest in times of recession or crisis, but those are perfect times in which to make a quality investment and with low risks associates such as an investment in the real estate sector. Thanks to this, the capital invested will be safe from inflation and will generate even more money to facilitate a new path of income or even ensure a stable and full retirement.

Would you like to make an investment in real estate With a great returns and a low associated risk? Do not hesitate to take a look at our available properties, and if you have any questions do not hesitate to contact us, we are at your complete disposal.

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