3 main advantages of property investment
Double money appreciation: rising property value and yield from rent
- Property value rises in time. In contrast to money in a bank account, where it becomes subject to inflation and it loses value.
- The property produces a regular rental income.
Low risk: perfect ratio of return on investment and investment risks
Slumps in the property market are much less common than in stock or commodity markets. Even in the biggest crises people must live somewhere, while they get rid of commodities. You can invest in commodities, of course, and maybe get higher yield, however, the risk is also significantly higher and you might lose all capital. According to the yield/security ratio property investment is the best investment.
Liquidity: property can be easily sold
Properties are places for living in the first place; this fact brings a very constant and stable demand. Therefore, it is no problem to convert your property into money when needed.
Comparison between investment in properties and other possibilities
|Without the influence of inflation||With the influence of inflation|
|Saving accounts||0,2 % p. a.||–1,8 % p. a.|
|Pension scheme||1,5 % p. a.||–0,5 % p. a.|
|Property investment via Bohemian Estates||9,7 % p. a.||7,7 % p. a.|