Real estate investments are an increasingly striking market for its growth, appreciation and economic stability. While there are many instruments to grow money, this is a modality that has been gaining ground thanks to the benefits it offers. Two of the most important are its reliability and stability.

More and more investors from different Latin American countries are choosing to buy properties in the United States. Especially in the southern part of the state of Florida. What are the reasons? We will tell you next.

Real estate investments: the reasons for their stability

Why does real estate represent a good market to invest your money? These are the reasons that have made it a stable and secure instrument:

Generate greater liquidity

Quality real estate projects, with good amenities and located in highly demanded areas, are sold more easily. In other words, they are an asset that can be quickly converted into cash. However, if it is not sold, it can be used as a family residence.

On the other hand, if the investor is interested in renting, he can also obtain an excellent profit from his real estate investments. Especially if the property is located in important tourist destinations or with a high level of immigration, such as, for example, Miami and South Florida. There are different types of rental: temporary, vacation, by room ( Airbnb type) and as a permanent home.

Many investors prefer to put their capital in the financial market rather than in the real estate market. However, analyzing its movements, the latter offers a more regular return over time and has a lower risk.

Real estate can generate sustained profits in the short, medium and long term, something that might not happen in financial investments. These are subject to the fluctuations of the stock market, which are also high risk. Thus, investors are more likely to lose money.

Finally, the real estate market is much less frenetic than the stock market. You can take the time you need to analyze different proposals and acquire the property that suits you best. On the contrary, the stock market involves making impulsive decisions and on the fly. Although, in certain periods of time, profitability has behaved similarly in both sectors, the truth is that the stock market presents a much greater variability (Diario Financiero, 2021).

They increase their capital gain

Property investing has a unique characteristic: appreciation. It means that real estate tends to increase in value over time. This depends on several factors, although the most important is the location.

Property values in a given area tend to increase in parallel with its greater urban infrastructure and housing demand. Consequently, real estate investments also offer greater stability for the future. Over the years, you will see the value of your investment increase.

Real estate investments protect against inflation

When there are generalized price increases in an economy, real estate also raises its cost both in its value and in the sale price and the rental price. Thus, if you own a property, you will receive higher income. This means that real estate helps protect you from inflation and prevents this phenomenon from causing you to lose money.

It is an important point to consider, given that, at the moment, the United States is going through an inflationary phenomenon. In May it stood at 8.6%, the highest rate in the last four decades (Infobae, 2022). In this way, families are being forced to spend more on housing.

It’s a wider market

The range of clients in real estate investments is quite wide. It can be buyers or people interested in renting, both permanent and vacation. Among these can be families, individuals and even companies that need offices or commercial premises. In addition, the real estate market includes everything from mansions and luxury projects on exclusive islands (The Real Deal, 2022) to small apartments in the heart of the city.

Thus, real estate offers greater potential to do convenient business and consolidate your capital, giving way to true financial freedom. Also, the more demand there is, the more competitiveness of your investment will increase and the price will increase. Are you looking to increase your income? Consider making real estate investments. Real estate represents an excellent business opportunity to increase your wealth. Not to mention that you can enjoy a comprehensive service that accompanies you at every moment of your investment.

References

Financial Journal. 2021. Profitability and real estate investment. Retrieved from https://www.df.cl/opinion/columnistas/rentabilidad-e-inversion-inmobiliaria

Infobae. 2022. The Federal Reserve decided to raise the interest rate by 75 basis points to contain inflation in the United States. https://www.infobae.com/america/eeuu/2022/06/15/por-primera-vez-desde-1994-la-fed-aumentara-75-puntos-basicos-la-tasa-de-interes-para-contener-la-inflacion-en-eeuu/

The Real Deal. 2022. Heinrich von Hanau launches sales of Fisher Island single-family homes with average price of $33M. Retrieved from

https://therealdeal.com/miami/2022/06/14/heinrich-von-hanau-launches-sales-of-fisher-island-single-family-homes-with-average-price-of-33m/