5 reasons why real estate is the safest long-term investment

In the long term, real estate is a good store of value for invested funds. Despite the fact that they are often seen as a conservative type of investment, there are more and more investors who add real estate to their portfolios as they look for more stable sectors, especially in uncertain times.

The price of real estate has been rising steadily for a long time, which is why a large part of investors have become fond of these assets. Especially last year, the increase in real estate prices in the Czech Republic was noticeable. Research shows that even in unstable times, when the world is shaken by the war in Ukraine and the effects of the pandemic are fading, investment realities, unlike stocks or cryptocurrencies, are still at their peak.

Look at how these asset classes have reacted to the changing macroclimate in the past.

But why have the world's investors become so fond of real estate and are holding their assets even during the crisis?

Real estate is almost risk-free compared to stocks

Risk is something that every investor wants to avoid in uncertain times. Real estate offers the prestige of stability and resilience in the market, often even during a crisis. Consider whether your portfolio is sufficiently balanced and if you want to enrich it with more conservative assets, we recommend that you explore the real estate market.

Fabulous returns in the long run

Even though inflation is rising rapidly, your real estate income also increases as your rent increases, regardless of whether you own the property directly or use our Investown platform for simplicity. In addition, recently, the demand for purchase has continued to grow and real estate yields have been bringing high returns in the long term. While buying a house is usually harder for many of us than buying a stock or bond, it pays off as an investment in the long run, especially when you're a fan of safer investments.

Regular monthly profit

One of the biggest benefits of investing on the Investown platform is a regular monthly profit. Once you expand your portfolio to include real estate, you don't have to follow the day-to-day market events and reactions to world events as you would in the case of stocks, for example. Real estate investments ensure a stable and regular monthly income, and with the rise in real estate prices, more profitable investment opportunities will emerge.

Better portfolio diversification

According to this year's data, half of Czechs invest, and investors then focus on one type of asset that they find suitable. Better diversification makes your portfolio more stable and reduces the risk you take when one type of asset falls.

Diversification is an essential part of a strategy that no investor can do without and is the key to long-term investment success. As soon as the value of one asset falls, your finances can protect another asset and you will not lose all possible income at the same time.

The real estate market is accessible to all

To be a successful investor in the world of stocks and cryptocurrencies, this is often preceded by an education in the industry. At the same time, almost anyone with initial capital can become a real estate investor, because the field requires almost no preliminary knowledge.

Stopping investing in times of crisis is the worst thing you can do. Your investment steps always need to be thought through, but that does not mean waiting for what will happen to the market. Invest regularly and stick to your long-term strategy and you're halfway to success.

Is investing in real estate something you'd like to embark on, but are discouraged by the amount of paperwork and a demanding mortgage? Try Investown – investing in real estate online and without stress.

Despite the worsening outlook for the leading economies and the forecasts mentioned above, there is likely to be a further rise in interest rates and hence in household and corporate debt.

Bitcoin has lost about 74% in less than a year. Ethereum, the second largest, is in a similar position. This cryptocurrency traded for nearly $4,900 last November, and is currently priced around $1,250.

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