In many regions, residential property prices have risen sharply in no time at all. The low mortgage rates have increased demand enormously. Especially in the metropolitan cities and their surrounding areas, real estate prices have experienced several times (sometimes even double-digit percentage growth) in recent years.
More investors are asking whether it makes any sense to invest in real estate
In view of this development, more and more investors are asking whether it makes any sense to invest in real estate. This question can be clarified in the context of a blog post but only conditionally, you could write whole books. There are countless points that speak for both as well as against real estate purchases.
The market environment is still considered attractive
In general, however, the market environment is still considered attractive. Although house prices may have picked up, they should not be the only basis for decision-making. Finally, there is the European Central Bank, which has been flooding the market with cheap money for years and is likely to continue to do so. The consequence is simple: the US states reduce their debts by favoring inflation. Who hoards his savings in the account, the inflation will not be able to compensate.
Real estate, on the other hand, offers excellent inflation protection. If the price rises, rents are not excluded. At the same time, the buildings themselves are gaining in value – in general, it is therefore advisable to hedge one’s own assets at least proportionately with real estate.
Be possible to acquire shares in real estate funds
Of course, it would also be possible to acquire shares in real estate funds. However, these cases have recently caused investors greater difficulties, in some cases funds were blocked and, in addition, many funds suffered considerable losses. In addition, these are ultimately money investments that pose additional risks. Who is the owner of the property? What is the name of the property?