5 reasons why real estate is the safest long-term investment

In the long run, real estate is a good custodian of the value of invested funds. Although they are often seen as a conservative type of investment, there is an increasing number of investors who are adding reality to their portfolio as they look to more stable sectors, especially in uncertain times.

The price of real estate has been steadily rising for a long time, which is why a large part of investors liked these assets. In the past year, the increase in real estate prices in the Czech Republic was especially noticeable. Research shows that even in an unstable time, when the war in Ukraine is shaking the world and the effects of the pandemic are fading, investment realities are still at their peak, unlike stocks or cryptocurrencies.

See how asset classes have responded to changing macroclimates in the past.

But why are the world's reality investors so fond of and holding on to their assets even during the crisis?
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Real estate is almost risk-free compared to equities

Risk is something that every investor wants to avoid in uncertain times. Realities offer the prestige of stability and resilience in the market often even during a crisis. Consider whether your portfolio is sufficiently balanced, and in case you want to enrich it with more conservative assets, we recommend that you explore the real estate market.
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Fabulous returns in the long run

Even though inflation is rising rapidly, your real estate revenues also increase as rents gradually increase, regardless of whether you own the property outright or use our Investown platform to simplify. In addition, recently, the demand for purchase continues to grow, and real estate yields thus bring a high return in the long term. Buying a house is usually harder for many of us than buying a stock or a bond, but it pays off in the long run, especially if you're a fan of safer investments.
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Regular monthly profit

One of the biggest benefits of investing on the Investown platform is regular monthly profit. Once you expand your portfolio to include real estate, you don't have to keep track of day-to-day market events and reactions to events in the world the way you would with stocks, for example. Real estate investments provide a stable and regular monthly income, and as house prices rise, other, more lucrative investment opportunities will emerge.
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Better portfolio diversification

According to this year's data Half of Czechs are investing, investors then concentrate on one type of asset that they find appropriate. Better diversification makes your portfolio more stable and reduces the risk you take if one type of asset goes down.

Diversification is an essential part of a strategy that no investor can do without and is key to long-term investment success. As soon as the value of one asset falls, your finances can protect another asset and you will not lose all possible income in one moment.
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The real estate market is accessible to everyone

To be a successful investor in the world of stocks and cryptocurrencies, this is often preceded by an education in the field. At the same time, almost anyone with start-up capital can become a real estate investor, since the field requires almost no prior knowledge.

Stopping investing in a time of crisis is the worst thing you can do. Your investment steps should always be well thought out, but that doesn't mean waiting to see what will happen to the market. Invest regularly and stick to your long-term strategy, and you're halfway to success.

Is investing in real estate something you'd like to venture into, but are you deterred by the amount of paperwork and a demanding mortgage? Try Investown — investing in real estate online and stress-free.