We all want to protect our money, not just from inflation. Investing in real estate is one way, but what's the reality behind it?
Many investors perceive investing in real estate as safer than investing in stocks. However, upon closer analysis, investing in stocks might be safer and even more efficient.
If considering buying real estate as an investment, it's crucial to have a clear investment plan and set aside something for unexpected situations. The notion that all tenants will pay rent on time, maintain cleanliness, and no additional costs or fees will arise does not always align with reality.
What are the disadvantages of investing in real estate that people often overlook?
An alternative could be investing in global real estate funds. Instead of betting on one property, they hold portfolios of hundreds of properties (commercial, residential, recreational) worldwide. They play an important role in our clients' portfolios, reducing overall value fluctuations and representing so-called alternative investments.
If you still want to buy real estate, when is the best time? Investment in physical real estate might be suitable when you have sufficient own capital, low-interest rates, and real estate forms a smaller portion of your overall wealth.
Real estate undoubtedly has a place in a client's portfolio. However, I recommend to my clients that real estate investment should not exceed 30% of their total wealth.
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