Right now, putting your capital in a savings account is (very) unprofitable. Therefore, real estate investment represents an attractive alternative solution, especially when interest rates are low.
Here are the 7 good reasons to invest your capital in real estate.
- Attractive risk-adjusted return
A net return on equity of at least 6%*, this is what Imvesters currently offers on its platform. Real estate thus demonstrates an attractive yield from rental income. The income is net of fees and charges (however, taxes still need to be deducted).
In the current context and considering the performance or risks of other asset classes, investors have an interesting investment with real estate. With Imvesters, income is distributed monthly, allowing for a regular supplementary income.
Total performance (rental income + price evolution) of income properties in Switzerland - Diversify your assets
Real estate is an excellent way to diversify your assets. It first offers a risk-adjusted return profile superior to any other asset class. It is also weakly correlated with other asset classes (stocks and bonds), thus allowing you to diversify your investments while reducing the risk (volatility) of your overall portfolio. - An investment suited to multiple objectives
Whether to benefit from supplementary income, diversify your investment portfolio, pass on assets to your heirs, invest your savings, or build a tailored real estate portfolio, real estate investment (and specifically crowdfunding) offers many advantages that adapt to each individual’s asset needs. - Investment security
Real estate has intrinsic value. A property is tangible and concrete. Such an investment is also reassuring because its time horizon allows you to pass on your assets to your heirs and meets a universal and essential need: housing. - Provides a steady income stream
Rental income paid by tenants provides an additional income stream for the investor. The income is net of charges; only taxes remain to be paid. - Potential gain upon resale
In addition to the rental income paid monthly by tenants, an investment in an income property also benefits from potential capital gains upon resale. This is explained by the natural evolution of real estate market prices.
Price evolution of income properties in Switzerland - Make your money work with a “turnkey” solution
The money works on its own since the property is already rented. Management is delegated to a property management company, so this investment naturally generates income. This income can help supplement your retirement or finance an investment in another project or property. Everyone can thus create their own real estate portfolio with a “turnkey” solution.
Key Takeaways
Real estate is an attractive investment that until now was reserved for a certain elite.
Thanks to real estate crowdfunding, income real estate has become accessible starting from CHF 20,000.
