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With interest rates low and markets showing signs of volatility, many investors are looking to real estate as a stable way to help safeguard their money. The world’s property market hit a record high in 2014 of $13.6 trillion, with countries like the UK and America experiencing record real estate values in a number of cities. At the same time, the rise of online investment via crowdfunding has sparked new interest in real estate from countries outside of the usual investment destinations; Latin America, for example, is seeing a new wave of foreign investors putting money into cities in countries such as Brazil and Argentina – Forbes have even identified Latin America as a new hotspot for property investment.
It is the current consensus that real estate might be this year’s best bet for investment. A recent survey of over 600 professional investors conducted by Colliers Global Investor Outlook 2016 showed that more than half of them are looking to increase their investments in property this year, with only 11% thinking of decreasing.
What real estate provides over other forms of investment is more stability in the form of a tangible asset – the physical bricks and mortar. Stocks and shares fluctuate daily, the control of which is mostly out of the hands of investors; meanwhile, investing for equity in start-ups is far too reliant on the success or failure of the individuals involved in that business – and as we all know, people can be unreliable. Property, on the other hand, is not subject to these same variables. Real estate provides a safe harbour for your money, offering more security in turbulent times.
Real estate also offers longevity, something that is extremely valuable in a market prone to volatility. It is the kind of investment that needs to be left to grow over time in order to gather returns and provide long-term gains. Combine this with the relatively low-risk nature of property and you have a solid platform to amass capital.
In terms of the state of the market right now, the current rise in foreclosures means that more people are now looking to rent, opening up opportunities for investing in properties to receive rental income, as well as longer term capital gains. Interest rates are also low right now, making property an even more attractive investment.
Current technology and advancements in online Crowdfunding are also making property a more attractive option for both traditional investors and a new wave of property investors. The internet has provided a means for everyone to invest in real estate with the advent of Real Estate Crowdfunding and has created a whole new market. People can now use online platforms to put smaller amounts of money into properties on the other side of the world, something that was impossible in the real estate market of the past. This means that even those with more modest sums of money can invest in a safe place, and thus increase their potential for returns on the investment.
So now that real estate is more accessible than ever, why not invest yourself? Go to the Bricksave website to browse our property portfolio.
by Bricksave CEO Tom de Lucy
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Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.