Why real estate is a smart and reliable investment

Director of the international luxury real estate agency Mercury Group Ltd Irina Alazova talks about the benefits of investing in real estate.

Well-chosen objects allow investors to receive predictable returns, portfolio diversification and independence. And this is not all the benefits.

Cash flow is the net income from real estate investments after mortgage payments and operating expenses. A key advantage of real estate investments is their ability to generate cash flow.

In many cases, cash flow only increases over time as you pay off your mortgage and grow your capital.

Investors in real estate earn money from rental income and profits received from the resale of a property, taking into account the increase in its market value.

I note that we are talking about investing in initially highly liquid objects. Only high-quality and carefully selected properties can guarantee growing income from property management, resale and rent.

Investing in real estate increases your diversification, which can act as a cushion in times of economic uncertainty. While stocks are subject to the slightest fluctuations in the economy,

And many cryptocurrencies turn out to be soap bubbles, investment properties in your portfolio can still rise in value, protecting against losses incurred by other investments.

Investing in real estate is considered a hedge against inflation. An increase in the price of goods and services always leads to an increase in the cost of housing and rent.

Therefore, investment property can provide you with a growing monthly income while protecting you financially when the value of everything else is rising as well.

The main purpose of investing in real estate is to increase capital. It's simple: when you sell real estate that has risen in value, you increase your capital.

But once again, the main thing is to invest in the right real estate, which will grow in value.

Owning investment property also offers non-financial benefits. Real estate investors are their own bosses. This is an ideal income option for those who are tired of working for bosses and depending on their decisions.

By giving real estate to the management of a real estate agency, you will not be tied to a location and will be able to receive a stable income in any part of the world.