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Why invest in a Real Estate Property?

February 14, 2020by Winstonfield

Real estate is one of the most renowned long-term type of investment alongside bonds, cash and stocks.

When real estate investments are well planned, developed and strategically placed are classified as low risk investments.

Entrepreneurs choose this type of investment in order to capitalize their portfolio assets and increase portfolio value.  

On the other hand, with this type of investment, entrepreneurs have more options compared to the  other type of investment (stock, bonds etc.), because, at any given time, they can rent, renovate, refinance or sell the property, or even change its use to commercial etc.   

So, what are the advantages of this type of investment?

Why entrepreneurs choose to include real estate investments in their portfolio?

These are two major questions that entrepreneurs have in mind when they are in the process of forming or restructuring their asset portfolio.

Some of the reasons that make real estate property investments a solid option of investment are: 

Properties will always be in Demand

Properties are built because there is an equivalent demand in a country, city, area or location. The population is constantly increasing, which means the demand of residential units is increasing as well.  Therefore, investors who have commercial or residential properties in their possession may benefit from this tendency and collect their investment return via renting or selling.     

Passive income Generation.

The investment in real estate properties may generate rental income. When investors choose wisely the location and building infrastructure, they minimize risk, secure a constant cash flow through rental yield and future capital appreciation. Usually, this type of investors initiates asset portfolios with several rental residential units that provide them with a continuous flow of income.   

Return on Investment (ROI)

Investors may earn constant returns on their real estate investments, through rental yields.  When a well-planned strategy is in place, the investors may enjoy high returns due to positive leverage and equity growth.   

Low risk investment with an increased stability factor

Compared to the other types of investments i.e. stocks, bonds, mutual funds etc., real estate investments are considered as safe tangible assets that are not liable to stock market’s short-term fluctuations. For that reason, financial consultants always recommend this type of investment and they suggest to their clients to add real estate property investments in their asset portfolios, so as to spread the risk and have a stable source of income.

Real estate values always recover through time

Historical data and real estate market researches across the globe, have proven that the real estate market always recovers after an economic recession and prices are back on track after some time. This is one of the main reasons why investors prefer to have in their portfolio this type of assets and investments.  

Real estate properties are renewable

One of the biggest and most appealing advantages of a real estate property is that it is renewable.  Real estate properties are tangible assets with a physical substance; therefore, owners can enhance the value of their property with renovation or by adding feature and fittings and many more.  

Real Estate properties are depreciable

Depreciation is a non-cash expense that reduces the value of tangible fixed assets over its useful lifetime, because of aging, obsolescence etc.  When assets are owned by companies, this expense is deductible and allows the real estate investors to have larger cash flow and lower taxable income.    

Winstonfield Residences is one of those unique opportunities that investors should look into. 

The location of the property is one of the best in Limassol, the infrastructure is excellent with top notch quality materials, fixture and fittings.  

As a result, besides their acquisition of high – end luxury apartments, investing in Winstonfield Residences, will get investors a profitable liquidation exit strategy if they wish to, with a capital appreciation estimated between 5% – 8%. 

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