Property investments: the biggest savings for your capital
Property investments or real estate is getting strength between priorities among different investor profiles. Classic investments in shares and funds are walking on a tightrope. You only have to look on the profitability rate that produces no benefit, as well as being dominated by taxes. This context has favored the reason to study other types of savings, since they are not demanded anymore.
In the last few years, the financial outlook has showed us different answers to those who are ready to invest, with the certainty and rapidity of having a high profitability. The new trend which is totally controlling the market is the investment in real estate. This type of investments holds a high profitability, even in times of economic crisis.
Why should I invest in real estate?
First of all, its value increases as time passes, that is to say, in the long term. This will produce a future profitability. Furthermore, there is a chance to get a short-term profitability: the rent of those properties (generating periodic fixed income). In other words, it is a <<2×1>>, high profitability and financial tranquility.
Moreover, this modality owns different patterns than traditional investment, since the biggest difference is the investment volume. On one hand, there is a need of a high initial injection of capital in property investment, although there also exists other options to invest in active properties from limited capitals. On the other hand, there is no need to pay out this capital in traditional investments.
Improving quality of life
Investing in properties is also a synonym of saving in life. We often bother about those bad periods which economy goes through, or even retirement pensions which do not cover our basic needs. Therefore, this type of investment will help to avoid problems and worries about future.
The fiscal panorama is another of the strong points of this modality. These types of assets are only taxed on the cadastral income (within your property) and its rental income is excluded, so it provides a fiscal stability as differential value.
In conclusion, property investment is almost controlling the market and more and more are leaping into this type of operations. High profitability, periodic income and fiscal stability are the three pillars on which this type of investment is based.
Finally, if you are interested and you want to know more about these types of investments, you can contact us through our web page. Projects, different investment models, typologies… Whatever your doubt is, we will be delighted to solve it.
Juan Micó, Director of iberohomes.com, API Associate No. 132
