Residential real estate as an investment: Attractive return opportunities and stable performance
The “Residential” asset class includes residential properties such as single-family homes, multi-family homes and apartments. It is considered one of the most traditional and at the same time most stable asset classes in the area of real estate investments. Residential properties have proven to be a valuable investment in the past and their prices have risen steadily over the years. This is primarily due to the high demand for housing, which is favored by the growing population and urbanization.
Advantages of residential real estate as an investment:
Steady value development:
Residential properties have proven to be a valuable investment in the past and their prices have risen steadily over the years. This is primarily due to the high demand for housing, which is favored by the growing population and urbanization.
Regular income:
Residential real estate offers investors the opportunity to earn regular income through rental income. This rental income can be an important source of passive income and help finance the property.
Inflation protection:
Rental income can be adjusted to inflation, which protects the value of the residential property investment over time.
Diversification:
Residential real estate can help diversify an investor's portfolio and reduce risk.
Investment in tangible assets:
Residential real estate represents an investment in tangible assets and is therefore less susceptible to price fluctuations on the stock markets.