8 reasons to invest in real estate in Portugal!
1. It is a solid asset
It is a tangible asset, made of cement and brick, that can be used and inhabited.
2. Rental profitability
It is an asset that receives rental income adjusted by indices specified in the contract. In addition, the value of the property appreciates over time.
3. Protection against inflation:
Protection against inflation in real estate, whether originating from the relationship between housing demand and GDP. As the economy expands, causing an increase in rental prices, the demand for real estate increases and, consequently, its value.
4. Diversification
Having your money invested in different investment formats brings balance, often a higher overall return, and, above all, reduced risk. It's like the old saying: "don't put all your eggs in one basket."
5. Leverage
It's like the expression "money makes money" says: having money allows you to make investments that can bring interesting returns. Investing in real estate is something that brings interesting returns, but often requires a lot of capital. However, specifically in the case of real estate, it is possible to obtain financing with very low interest rates and use the bank's money to your advantage. This is a possibility that does not exist in many other types of investment.
The summary of this item is "purchase a property and profit from the bank's money."
A formula used for this investment around the world is:
Rental income – financing expenses = return.
This way, you will be increasing your assets at a very low cost.
Note: this is only possible at certain times in the real estate market.
6. Tax benefits
In some circumstances, you can deduct financing interest from your income tax, depreciate the property, and save on other tax benefits depending on the area of purchase.
7. Reliable returns
Real estate, unlike stocks and bonds, has historically been much less volatile and provides more consistent returns, even during difficult economic times.
8. Control and ease of investment
It is a very profitable investment that requires less knowledge than the capital market and running your own business.
Are you looking to buy property in Portugal? Click here and talk to me about your investment!
