Real Estate

What is Real Estate?

The term “real estate” refers to land and the permanent attachments to that land, such as residential, industrial, and commercial properties.

Real estate assets generate earnings in two ways: through appreciation (selling an asset at a higher price than it was bought) and rental income.

What real estate assets can you invest in?

You can invest in a range of real estate assets, including:

  • Flat blocks
  • Retail centres
  • Offices
  • Warehouses

Why invest in real estate?

Investing in real estate is profitable for the following reasons:

A Diverse Portfolio

Solely investing in shares and bonds leaves you vulnerable to market fluctuations. However, real estate rarely follows the movements of other markets. Therefore, investing in real estate lessens the risk of your entire portfolio plummeting due to unfavourable stock market trends.

Inflation Hedging

Real estate value and rent prices tend to increase with inflation. Therefore, investing in real estate protects investors from losing portfolio value due to inflation.

Reliable Income

Regular earnings from rental properties are sustainable and predictable sources of income. Tenants and companies tend to sign contracts to rent real estate for months or years, which provides dependable earnings for investors. Additionally, good real estate investments offer a more profitable regular income than dividends from shares.