How to Invest Smart Against Inflation in 2022?

If you have noticed that your grocery bills have increased since the last time, even if you are buying the same items, then you are experiencing an inflation surge in your country. 

Prices continue to go up, but the worst part is we don’t know when they will stop, making us financially unstable and vulnerable. 

But we are sharing some advice with you on how to invest smartly against inflation in the modern day to avoid any big hits to your wallet when spending. 

Consider Investing in Real Estate

Investors in real estate tend to benefit from a natural hedge against rising prices. It is because leases tend to reset higher periodically. With the rising prices, housing stays in short supply, and wages keep increasing, which makes housing still affordable. 

With the upward trend in e-commerce too, the need for more storage and warehouses tends to increase. And remote-work migration is creating more opportunities. You can invest through private markets or Publicly Traded Real Estate Investment Trusts. 

Apart from that, you can also rely on equities, especially the cyclical ones, to ensure capital appreciation for further investment into real estate. 

Equities tend to do pretty well during inflation as corporate earnings are strong. Corporations with pricing power in materials or industrials experience robust revenue growth.

Also, focus on avoiding excess cash and consider borrowing. It is because 80 percent of assets in Long-Term Capital Market Assumptions have a higher rate of expected returns than inflation. 

You need to defend your purchasing power and avoid excess cash by investing it in a portfolio suitable to your goals and the time horizon. 

Bowring can be a good option in such a scenario because interest rates are still low compared to inflation. A mortgage can be a pretty simple way to take advantage of a roaring housing market. 

But you have to be careful because rising inflation also influences real estate investments. And the reason is that your money is losing its purchasing power. But it does help the real estate investors in the long run because you are putting your money in the game. 

If you’re a residential property owner and it is not generating any cash flow for you, you are a lazy equity property owner. But if you own a rental property that is generating cash flow, then it’s an asset, and you are a real estate investor. 

With inflation, real estate value increases, and so do the rents. Moreover, your debt is getting cheaper due to the decreasing value of money with the inflation rise.  

Do a Good Research & Focus on Asset Classes for Protection Against Inflation

Your money won’t be able to buy the same values of goods after ten years that it can buy today. This occurs due to inflation, which can result from increased raw materials, wages, etc. 

There are different ways to hedge against inflation. 

  • You can invest in different asset classes, and gold is at the top. Gold has always been considered a hedge against inflation, and many people consider it to be an alternative currency, especially in countries where the currency is losing its value. 
  • Commodities are another option, and it is a broad category. It includes precious metals, grain, oil, electricity, orange juice, beef, gas, emissions, foreign currencies, and various other financial instruments. You can invest in these commodities using exchange-traded funds.
  • You can also look to develop a 60-40 stock-bond portfolio as it is considered to be safe. Hence, you can invest in Dimensional DFA Global Allocation (DGSIX) if you don’t want to manage it on your own. 
  • Real Estate Investment Trusts or REITs are another good option as these companies operate or own income-producing real estate and pay out dividends to their investors. 
  • Investing in stocks of the S&P 500 also has an advantage in the long run. These are the businesses that gain from inflation and need less capital. 
  • Going for real estate income is another good option as you rent out a property that you own. 

It’s a Good Time to Buy Some Good Stocks at a Very Low Price

You have to be careful with stocks because they can serve pretty well as a hedge in the long run but suffer in the short run with inflation spikes. But if you are new to the trading world, it’s pretty easy to get started. 

You will only have to open an account on a trading or brokerage platform and choose from many online brokers with zero commission trading.

Look for the best options with the widest trading choices, high-quality customer support, and better technological resources. Here are some of the best options for you to consider:


There are various choices you can make to protect yourself from inflations. You can go the trusty old real estate route or invest in different commodities or stocks. 

You can also use the inflation period to assess the overall performance of your assets and investments. But keep in mind not to make any dramatic changes based on current inflation, especially if you are a long-term investor. 

Metaverse NFT/Metaverse Real Estate

Metaverse real estate refers to a virtual real estate or an NFT (non-fungible token) asset in the digital world. It is a virtual space in the metaverse that represents a scarce and limited piece of virtual land and that is there in the metaverse. 

You can purchase this virtual real estate using your cryptocurrency. So, it means it is an effective way to manage your cryptoportfolio. In this article, we are going to discuss this matter in more detail to find out what it is all about, so keep reading. 

What is Metaverse NFT?

Of course, the metaverse is an immersive but shared virtual world where avatars represent players and they can interact with one another. They can construct or develop various experiences, and create different in-world objects or even landscapes. In other words, you can use these NFTs to buy and sell different digital things using cryptocurrency and manage your cryptoportfolio

Metaverse NFTs are non-fungible tokens or digital assets that cannot be replaced with anything else. For instance, bitcoin is fungible, because you can trade wine bitcoin for another and you will have the same thing. But how about a unique trading card, that thing is an NFT or non-fungible token. 

After the trade, you will have to replace it with another card, which is not similar. So that card is an NFT. So is a virtual clip-art of rocks or some kind of a virtual painting that you have created, and it can be digital space within the metaverse. 

But How Does It All Work? 

At the top level, most of these NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency just like Litecoin, Dogecoin, or Bitcoin. Blockchain supports all these currencies and many others. Different blockchains can implement their own NFT versions. 

But what is it all worth? As NFTs can be anything that is digital, a lot of hype is to sell digital art and space using tech. Copies of these NFTs can be downloaded but the original rights remain with the owner or creator. 

If you have a really cool-looking digital art or an awesome-looking sticker then you can sell it as an NFT. The items you can sell as digital art are something that you cannot sell anywhere else. As a buyer, you can really support an artist by appreciating his/her work. 

NFTs and Real Estate

In recent times the real estate industry has really shown that it can use NFTs pretty well. As these NFTs are associated with digital things. But there is a game where players can sell and buy digital land in the Virtual real estate market and it’s called Decentralnd. 

These properties are bought and sold as NFTs. You will get a deed that shows your ownership proof. And you can buy and sell this piece of virtual land using cryptocurrency (Mana Coin). 

But Etherland is a new NFT project that incorporates real-world properties and links them with NFTs. So you have a unique property, and you can NFT it using the Ethereum block, a pretty secure cryptocurrency.  

Top Metaverse NFTs

Here is a list of top metaverse NFT projects that are completed or are in the works,

  1. Beeple or Mark Winklemann’s digital artwork called the Everydays: the First 5000 Days went for USD 69.3 million in 2021. 
  2. There is another Beeple piece called the Crossroad, a 10-second video showing animated pedestrians walking past a Donald Trump figure that went for USD 6.6 million in March 2021. 
  3. Curio Cards is a set of 30 unique cards that went as a part of Ethereum Blockchain and sold for USD 1.2 million.
  4. Within a game, you can buy or sell pieces of land as NFTs. These pieces are controlled by the users and not the game developers. 
  5. You can also buy and sell game artifacts as NFTs. 
  6. Various games have virtual worlds in them. Games like Decentraland, Star Atlas, Sandbox, Somnium Space, CrytpoVoxels allow you to purchase virtual lands as NFTs. in 2021, a virtual plot of 16 acres in Decentrland went for USD 913,228.
  7. You can benefit from it as a musical artist as you tokenize your work and then publish it. Moreover, artists use NFTs during the pandemic to recuperate from their income losses. In February 2021, 3LAU sold the 33-NFT collection for USD 11.7 million to commemorate the third anniversary of his Ultraviolet album. 
  8. In March 2021, Kings of Leon released their new album, When You See Yourself, in NFTfor USD 2 million in sales. Other musicians that have used NFTs include Lil Pump, Shepard Fairey with Mike Dean, and Eminem. 
  9. In May 2018, 20th Century Fox paired with Atome Tokens to release Deadpool 2 digital posters as NFTs. 
  10. In March 2021, Claude Lanzmann: Spectres of the Shoah by Adam Benzine was the first documentary to be NFT-auctioned. 

Final Thoughts

Metaverse NFTs are quickly becoming real digital assets, and people are pretty serious about buying these assets. It means if you are a creator, you can pounce upon this opportunity and really hit some good numbers in your cryptocurrency efforts. It is a pretty effective way to manage your cryptoportfolio too.

Real Estate the Business That Can Make You a Millionaire IN 2021

There are no shortcuts to making money or getting rich quickly from real estate, but you can build wealth slowly and steadily by investing wisely. You would know that there are many ways to get rich, but real estate is one of the best ways to build wealth. However, making money in real estate requires advice, systems, and proper determination.

Investing in real estate stands out as a proven approach to making money, but like any other business, it carries some risks. When done right, real estate can be a great resource for building wealth if you take the time to educate yourself on the process and the best ways to make big profits.

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This article is written for beginners who want to make money in real estate.


Is there one formula for success?

Many websites promise “the ultimate formula for success in the real estate business!” But does it really exist? Can everyone fulfill their dream of a million-dollar business in the same way? If this formula really existed, we would certainly all be very rich. But even if real estate is still considered one of the best investment opportunities today, there are still some risks here.

In addition, a certain amount of luck always plays a role when investing in real estate. The market is constantly changing and the time is not always right for such a system. Only those who are aware of the risks and make wise investment decisions at the right time can really benefit from the real estate business. With the tips of our city real estate agents and a bit of luck, your chances of big money are not bad at all.


Make money by renting

One of the most common methods is to make a profit by renting out real estate. So you buy a property and then rent it out.

Housing is in great demand and the real estate market is booming. Many people are therefore looking for an apartment or a house to rent, which increases their chances of making money here.

The situation of the real estate market differs depending on the region, which is why it can be advantageous to keep an eye on the market and take a closer look at the conditions for landlords in your desired city.


Appreciate and benefit from real estate

Various television series show how it is done and make it look very simple: Buy a house or apartment for cheap money, renovate it and sell it on at an increased value. This method of making money has proven itself in the real estate industry, but is it really as simple as it seems at first glance?

When a rundown property is upgraded and modernized, a good deal of money can be made for selling property. In order to be successful, however, you should consider the following:

  • Get a relatively cheap property in a good location
  • Make a detailed plan of capital and time
  • Note the costs involved in real estate trading
  • Let the renovation effort be assessed


Equity crowdfunding

A new, but already fairly established method of investment is the so-called crowd investing. With the help of platforms, small amounts of money are made available by many different private investors, with which larger projects, such as the purchase of a property, can then be implemented. Even small amounts can be invested here. This method is so attractive because it guarantees a relatively broad profit margin for you as an investor due to the relatively high-interest rates.


Smart investments

Not every investment brings the same amount of profit, because many different factors are often important here. In addition, the real estate market is constantly developing, which is why there is always a certain basic risk when investing in real estate.

To increase your chances of success in real estate investment, here are some things to keep in mind:

  • The timing must be right
  • Always keep an eye on market developments
  • Buy real estate in thriving cities


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Tips for expensive investments

Even if you make wise decisions and choose the properties for investments wisely, buying a property can exceed your own funds. Because even if you get a loan from a bank for financing, you often have to raise a certain amount of equity, which usually does not include little money. The more equity you can raise, the cheaper the bank loan will usually be for you.

So if you are having difficulties financing a property, the following tips may be helpful for you:

  • Reduce your living expenses
  • Put any leftover money aside
  • Find a roommate or subtenant to pay off the mortgage


Real estate trap

Although real estate is a profitable investment opportunity in many cases, there are some risks that you should be aware of. Overall, such a large investment should always be well thought out and planned so as not to let mistakes arise that could cause financial damage for you.

Our city real estate agents have listed some possible risks of a real estate investment here:

  • Tax changes affect your real estate business
  • An inadequate examination will lead you to dishonest tenants
  • When selling a house after a short time, additional costs and taxes are usually incurred
  • Due to private financial uncertainties, you will have to resell your property after a short period of time and only receive a fraction of the possible price
  • Undetected defects in the property lead to financial losses for you
  • Falling demand would gradually lead to falling property prices
  • An unfavorable location can keep prospects away
  • Rising interest rates could be a problem

If you become aware of the possible risks before investing in real estate and include them in your planning, you can promote the success of your investment. Some of the risks also result in opportunities for you as a property owner, which you can use for yourself if you are always informed about the latest developments and adapt your strategy accordingly.  To do this, it can be an advantage to seek help from an experienced real estate expert.

The worst type of Real estate investment

When we talk about a real estate investment, we are necessarily referring to the generation of profitability, the same that implies the relationship between the benefits provided by a certain operation and the investment or effort that has been made, which is usually expressed in percentages.

Any experienced real estate investor knows that not all properties are the same to invest in. Thus, homes that could be perfect to have as a main residence may be unprofitable to rent and cause the owner to lose money. We present a list of things to avoid if you are thinking of buying a home as an investment.

1. Not all properties generate rental income

It is not advisable to invest in second homes or land if you are looking for a return through rental. Some bet on this type of property with the expectation of a rise in value, but there is an opportunity cost that must always be valued. Depositing that money in this type of investment means setting aside other income for having the money stopped, so before buying and waiting for the price to rise, you have to estimate how much money would have been earned if the money had been in the bank, in stocks and/or bonds

2. Any exploitation of real estate can generate losses

If you buy a property of high value, a house on the beach, or a home to rent for vacations you should do well the numbers and costs of said acquisition if you are looking to have a recurring income every year. Buying and operating a rental home generates various expenses that we may not compensate with the rent. Therefore, it is advisable to buy houses as an investment that are profitable from minute one and provide us with income quickly, that is, you have to buy houses at moderate prices and not necessarily in prime areas with overpricing

3. Co-invest with other investors

Properties owned by several people have become popular in several countries. They are a way to diversify a portfolio without having to deal with the hassle of owning and managing properties, but few people have made substantial money from them for the costs and commissions that come with

4. Act as a private promoter

Promoting and developing a real estate project on land is a very high-risk business, ranging from legal, construction, and price, among others. These investments are best made by people with high net worth and experience who may run the risk that they will never see their money again.

5. Condo-hotels, multi-property, and other types of strange investments

Buying a hotel room and leaving it to the manager to manage it or the dreaded timeshares are investments in which there is no ability to predict cash flows, rental income, or the future value of what we buy. In addition, when we want to divest they are difficult to resell

6. Invest abroad

You can buy houses in Canada, the United States, or London because they are powerful real estate markets. But you must always take into account currency risk. That is, if you buy a home in dollars, even if the home goes up, you can have losses if the dollar goes down. In addition, the different laws and risks make them investments in which you have to be very prudent.

Property never loses its value and it is easy to start investing with relatively small capital without the need for a bank loan. However, it is necessary to approach real estate agencies that offer you the greatest legal certainty and have experience in taking care of your investment.

These same real estate companies must have growth plans and information on the investments to be made in the area.

This option presents high profitability, especially due to the expansion of the city towards the north.

If you want support on this method of diversifying your portfolio, consider seeking specialized advice that offers you the best dividends on your investment. However, if your intention is to invest in the long term to achieve a monthly income in the form of rent, or if you intend to reform the house or the apartment to sell it at a higher price, be very careful with the numbers you make. Evaluate well the pros and cons of your investment in real estate before jumping into the pool.  

Real estate investing 101

This guide is very important on your journey as a real estate investor. Without a clear understanding of the principles found in this section, you run a greater risk of failure. In fact, if you only remember the information presented in one chapter of this book, we hope this is it. Let this be your first step toward a successful future in real estate investing.

In this article, we will cover the following topics:

  • The importance of training in real estate investment.
  • Real estate and math concepts
  • Mentors, gurus and our investments.
  • Overcome fear
  • Paralysis by analysis
Real estate

Real estate investing is not a get-rich-quick way. Just like any solid construction needs a solid foundation, the same is true when it comes to your financial education – a solid foundation is the key to a lasting business.

This guide, while not exhaustive on all aspects of real estate investing, will help build that foundation. We created it to serve as a first step in your real estate education, and as an introduction to the possibilities that exist within real estate investing. Below you will find a list of sources that provide education in real estate investment; be sure to consider each one before taking each step, as what works for some people may not work for others.

Sources of training in real estate investment

Books: Books are essential to obtain a real estate training and can be the utmost extensive learning technique for investors. In each of the major bookstores you will find a complete section on economics and investing, and some books dedicated specifically to real estate investing. Chances are that if there is a way to earn money through real estate a book has been written about it. However, if reading books is not within your preferences, there are other ways.

Online / Blogs: Blogs can be an incredible source of information. There are fantastic blogs written on every topic you can think of. The blog is written by people who manage or make a living from their real estate investments and it is certainly worth reviewing and learning from them. In it our expert collaborators share their best advice and suggestions.

Coach or mentor: perhaps the most powerful way to obtain a good training in any field of study is through a mentor, a person with whom to share doubts and who guides us along the learning path, and the same happens with real estate investments. While there are dozens of professional coaches or mentors who charge outrageous amounts for their advice, there are also plenty of potential mentors who will charge you as little as a cup of coffee to chat about real estate investing. Learning from those who have reached your goals before you is one of the most important steps you can take in your financial education.

People generally enjoy sharing what they know, and the most seasoned real estate investors are no different. By introducing yourself to an investor they know in the same area of ​​operation, you will have the opportunity to learn from someone who knows your market and can ultimately become a future partner.

Now, why is it difficult to find a good real estate investment coach or mentor? Most self-proclaimed professionals are not in the business of real estate investing, but of coaching. That is, their income does not come from real estate investments but from the sales of their courses, and therefore they are not true experts in the field. And on the other hand, most real estate investors who are successful with their investments will not spend their time teaching or training others, unless they really enjoy this activity.

Real estate mathematics: basic concepts.

It is not necessary to learn to make derivatives or have a degree in mathematics to understand the necessary calculations applicable in real estate investing. In fact, most of the math you’ll need was seen in high school. This section will quickly tackle some of the basic concepts and mathematical formulas that you will need in your real estate investment career.


An income is simply the amount of money you make from a property. This concept is perhaps the simplest of all: simply add the amount you receive from the rent collected and any additional charges that apply.

For example, you own a rental home. This property is rented for € 700, and the tenant also pays € 50 for the use of the garage.

Real estate

His total income was € 750.

Income may also include late fees, supplies (if you pay and pass them on to the tenant), laundry and cleaning (especially on short-term leases), and any other additional amounts you receive.


Simplifying to the maximum we will say that expenses are simply the things that cost you money. For example, if the home mortgage loan is € 500 per month, the community fees of € 50 per month, the IBI (Real Estate Tax) and the insurance of € 25 each, then the total of your expenses It is € 600 per month. We’ll break down the mortgage payment into principal and interest later, but for now let’s keep things simple.

Cash Flow.

Cash flow is the amount of money we have left at the end of each month after all expenses have been paid. To determine the cash flow you simply have to subtract the payments made from the amounts collected. Continuing with the previous example:

€ 750 collected.

€ 600 paid.

The cash flow for this example property is € 150 per month. Let’s look at some more mathematical concept.

Profitability or return on investment.

The profitability or return on investment (also known as ROI – return on investment) is a way of measuring the money you receive in relation to the money initially invested.

For example, if you invested € 1,000 and have earned € 100 after one year, you will have obtained a return on investment of 10% per year. In the same way, if you invested in the purchase of a property € 40,000 and have obtained € 3,200 during the year, the return on your investment will be 8%.

The formula to calculate the return on your investment is as follows:

ROI = (V1 – V0) / (V0)

Where V1 is the value of your investment at the end of the period (for example at the end of the year) and V0 is the initial value invested.

These concepts present the foundations on which the analysis of real estate opportunities and the other indicators of real estate investment is based.

Paralysis by analysis. It’s easy to get stuck in so-called paralysis by analysis. An endless situation of research, planning, evaluation of opportunities, more research, opportunities … In other words, it is reading books without implementing what you have learned, reading blogs without participating in any way and meeting investors without interacting with them. Analysis paralysis is usually caused by a fear that something is wrong.

It’s easy to convince yourself that you don’t know as much as you should, which can prevent you from taking action. But remember, you don’t need to know all the real estate buying techniques and you don’t need to become an expert on all investment possibilities. Focus on one investment area, become an expert in it, and then move on to another technique or strategy. We will cover the different real estate investment niches in the next chapter of this guide.

If you feel like you’re not completely ready to go, you probably never will unless you take action. Even after acquiring a good number of properties, it is normal to be uncertain about any aspect of the investment. However, this position will force you to learn the answers to those questions and to muster the strength to keep going.

When you are afraid it is much easier to spend time and money buying another course or reading about new real estate investments than to dive in and take action. Educate yourself, create your investment plan and take action. As you do, your confidence will increase and you will soon begin to feel good about this activity. You will start to feel like a real estate investor!


Starting your real estate investment career with a solid foundation is vital to your success. There are many different ways to learn and grow as an investor, so choose a path and start learning.

The next chapter will help you continue your education by teaching your business basics, including real estate niches and common strategies. Once you learn this, you are ready to start planning your real estate investment business.

How to analyze a rental property – Deal or not?

It is not enough to start buying real estate and think that only that will make you a successful investor. The big secret to being a successful investor is in planning, when defining your strategies for making investments and managing them. Here are some essential tips that will help you on your journey!

Make a consortium to invest in the type of property desired

When opting for a consortium to acquire your property, you will join a group of other consortium members who have the same purpose as yours: to buy a property. Thereafter, all members will pay monthly the installments, which, when combined, allow a pre-established number of participants to be drawn each month.

With plans with several options of values ​​and terms, it is possible to opt for a consortium model that really fits in your pocket. For this reason, the number of people choosing this model grows more and more, after all, having a consortium document in hand is an excellent resource for people who want to invest their money in a property, avoiding spending it with something that will give a good return.

In addition to the monthly draw, you can offer bids, including making use of your FGTS, to further increase the chances of being awarded. Remember that you can also use your consortium credit to renovate, build, and buy land, a beach house and much more. The truth is that the consortium will boost your purchasing capacity, allowing you to realize your dream that previously seemed impossible.

rental property

Understand the best moment of the real estate market in the region

It is important to understand the market in the region in which you want to invest in order to know the most appropriate moment. To do so, assess the potential of the site based on your purposes for investing, above all, in the medium and long term. Research security, growth and other developments that are located on site. Many people building is usually a good sign.

However, multiple units on sale for a long time can be a problem. A shopping center, for example, must be easily accessible to people. A residence needs to offer conditions to live in comfort and safety, with easy access to transportation, shops, markets and leisure and cultural options.

Have a financial reserve

Some expenses will come up and you have to be prepared. So, have a good financial reserve for these expenses. The cost of the Final Deed of Purchase and Sale (when the payment is made with own resources) and the ITBI (Tax on Transmission of Real Estate) and deed fee paid to the bank responsible for financing, for example, are your responsibility, in addition to , of course, of the notary expenses of the Property Registry.

After this stage of fees and bureaucracies, remember that there are still costs with the purchase of furniture, moving services, decorative objects and much more. Knowing all of this, do everything to save on day-to-day expenses to add a good reserve and have a good planning for each stage of the business, because, by doing this, you can be sure that you will not be caught off guard, having , thus, a rewarding and frustrating shopping experience.

Check the documentation of the desired property / land

There are situations where the owner of the property, or even someone else, tries to sell an asset that cannot be sold. In such cases, the business may be canceled by a judge, and the buyer is the one who is at a loss.

rental property

In order to avoid a huge problem like this, it is important to check the complete documentation of the property and require negative certificates. To have more security in the process, you can also go to the Real Estate Registry Office to request the registration of the property with a certificate of encumbrance.

Observe the location of the property

When someone intends to rent or buy a property, one of the first factors that person will analyze is the location. If the property is well located, the owner gets better values ​​for it. Therefore, when analyzing a property as an investment, the tip is to check if it is in an attractive region. Thus, you reduce the chances of making a bad deal.

Do not invest on impulse / excitement

An investor will take great risks of suffering losses by allowing his decision to be influenced by impulse, excitement and emotional aspects. Therefore, in order not to make mistakes, it is necessary to evaluate each business with enough time and in a technical and logical way. Evaluate all the positives and negatives of the property before deciding.

Remembering that this tip is valid for any negotiation, be it selling or buying. It is essential to make rational decisions, especially in periods of great economic fluctuations.

An investment in real estate is an extremely secure financial investment. In addition, it provides years of happiness, fun and countless memories that will last a lifetime. Do a good planning, research, understand the market demands and know how to prepare yourself by investing in the right opportunities that allow you to reach bigger and bigger flights.

For you to be successful on this journey, you need to be aware that it will take a lot of dedication and study to know how to invest in real estate. That way, you will have the confidence that your decisions will be right and that you will have chances to earn good gains.

So, do you also consider that the consortium is the best way to help build your personal assets by investing in real estate? So, get in touch with us, take all your doubts and conquer your financial tranquility!

A Comparison of Real Estate Investments vs Stocks

Real estate

Real estate is something you can physically touch and feel – it is a tangible asset, and therefore, for many investors, it feels more real. For many decades, this investment has generated consistent wealth and long-term appreciation for millions of people. Depending on the location of your real estate, you can enjoy considerable returns on your investment.

There are two main types of real estate: commercial and residential. While there are other types (mobile home parks, shopping malls, apartment buildings, office buildings, storefronts, and single-family homes), they generally fall into those two categories. However, making money in real estate is not easy. Some people take the “return from home” route, looking for distressed properties, restoring them, and selling them for a profit at a higher market value. Others are looking for properties that can be rented to generate a steady income.

In general, a down payment of up to 20 percent of the purchase price can be made, with the remainder being financed through a mortgage.

Advantages of investing in real estate

There are many positive benefits to investing in real estate, including depreciation (amortization of the wear and tear of a commercial property), tax deductions, and finally, you can sell the property through what is known as a 1031 exchange, and you won’t have to pay. Capital gains taxes, as long as you invest the money in a similar type of property.

Disadvantages of investing in real estate

Like all investments, the real estate sector also has its drawbacks. Most importantly, the investment is illiquid. When you invest in a property, you generally cannot sell it right away. In many cases, you may need to hold the property for several years to realize its true earning potential. Plus, the closing cost can add up to thousands of dollars and include taxes, commissions, and fees.

Also, real estate prices tend to fluctuate. While long-term prices generally rise, there are times when prices can go down or remain stable. If you have borrowed too much against the property, you may have trouble making a payment on a property that is worth less money than the amount borrowed.

Finally, it is often difficult to diversify if investing in real estate. However, diversification is possible in real estate, as long as you are not concentrated in the same community and have a variety of different types of property. That said, there is an additional way that you can diversify into real estate through real estate investment trusts (reits), under which you can buy a trust that is invested in a large portfolio of real estate and will offer you a dividend as a shareholder. However, in general, stocks offer more diversification because you can own many different industries and areas throughout the economy.

A good compromise when deciding between investing in the stock market and investing in real estate can be owning a REIT, which combines some of the benefits of stocks with some of the benefits of real estate.


Using the s & p 500 as a benchmark to illustrate the performance of stocks, the stock market has had an average annual rate of return of 10.31 percent between 1970 and 2016. It is important to use this figure as a benchmark only. For the performance of US stocks as there are several other major indices globally.

With a share, you receive ownership of a company. When times are good, you will benefit. In challenging economic times, you may see a decrease in funds as company profits plummet. Taking a long-term approach and being balanced in many areas can help build your net worth at a much higher rate, compared to real estate.

As with real estate, equity financing allows you to use margin as leverage to increase the total number of shares you own. The downside is that if the stock’s position falls, you could have what’s known as a margin call. This is where the equity, relative to the amount borrowed, has fallen below a certain level and money must be added to your account for that amount to rise again. If you don’t, the brokerage company can sell the shares to get back the amount borrowed.

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The advantage of stocks

Stocks are very liquid, fast and easy to sell. They are also flexible and can even be reassigned to a retirement account, tax-free, until you start withdrawing money. Additionally, many stocks can do considerably better than real estate in one year. Due to the volatility of some stocks, it is not unusual to see companies that have an average growth of 20 percent or even 50 percent in one year.

The downsides of stocks

Stocks can be very volatile, especially when the economy or business is facing challenges. Furthermore, stocks are often emotional investments, and your decisions within the market can often be irrational. Ultimately, bankruptcy is always in the back of the active investor’s mind, as it should be, as your investment will dissolve in this case.

5 tips for your 1st investment

The first time around is always a difficult process to manage, and especially when it comes to money with the first investment. Therefore, to earn money and get a return on savings, you have to take into account some tips. Perhaps it will not develop as originally planned and the effect will be the opposite: losses will surface. Lack of knowledge of the markets and financial products, lack of learning and no experience in operations are the causes that can make you lose money on a first investment. To avoid this, this article shows the keys so that the first investment is not traumatic and can be channeled with the best results.

First investment, the most difficult

If investing is always a complicated process, and with a certain propensity to risk, it is much more so for those who do not have experience in this kind of operations and decide to make their first investment. Lack of learning and inexperience can play tricks on them and lead to money losses.

But novice investors can follow guidelines that limit the negative effects of the first investment. The key is to cement an adequate strategy to expand, even slightly, your personal assets. To achieve this, it is necessary to abide by criteria based on prudence, especially avoiding all kinds of sophisticated products or those that require minimal learning. It is preferable to set a modest goal, but one that can actually be achieved.


Tip 1: invest only part of the savings

You should never invest all the available capital, nor a very large part of it. Depositing between 20% and 40% will be enough for the first operation. Not surprisingly, there will be time to expand the investment, as the experience accumulates and the first positive results are detected. As a consequence of this strategy, the possible losses of money will be less and there will be more opportunities for the trend to change radically.

Tip 2: invest in popular products

Inexperienced savers should not, even remotely, invest their savings in banking products that they do not know, and even less in sophisticated designs of which they do not master their mechanics. They should be limited to those already known, at least in theory, and those who know how it works. This is the best formula to avoid making mistakes that could make them lose part of their contributions and, above all, so that the losses are less intense.

Tip 3: look for a guaranteed return

While they continue with their learning to generate greater return on their capital, first-time investors will have no choice but to opt for products that guarantee a return, no matter how small. Their options go through equities, through the securities that pay their shareholders with dividends (earning up to 6% every year) and continue with fixed-term deposits, or even mixed funds, which allow to improve the margins of return on savings.

Tip 4: get advice the right way

If they are not in a position to channel savings, either due to ignorance or because they have never operated with most financial products, inexperienced investors will have to demand the help of their bank. Certainly, they will have professionals who will be in charge of protecting this process, determining which designs are the most convenient at all times, as well as under what conditions to underwrite them, depending on the available capital and the level of risk that it can tolerate.

Tip 5: do not be influenced by other people’s opinions

Siren songs about what they can earn in one or another banking product will surely reach their ears, and these can come from people or opinions of not much confidence. In order not to make an excessively serious mistake, it will be necessary to avoid them, at least while the first operations are developed. They can lead to irreparable mistakes, from which your checking account balance is seriously affected.

What you should take into account before making your first real estate investment

  • Look for projects at presale prices, this ensures even more profitability when it comes to long-term sale.
  • Make sure the property papers are in order. You know, check that the property has no outstanding mortgages or liens.
  • It is important not to invest everything in the same market.
  • If you invest in something that is under construction, see how reliable the construction company is and how sure it is that the work is completed in a timely manner.
  • Beware of areas without capital gains. If you have doubts about this, read: How do I increase the equity in my house?
  • Also check what’s up with the green areas near your future home or apartment; the lighting, the services you will have access to (telephone, cable television, internet).

If you have money saved and want to make a smart investment, real estate is a good option. In fact, even if you do not have enough money to pay for a house and you must access a mortgage loan, it is still a good alternative because you can pay the monthly bill with the money that you would otherwise allocate for rent.

Do not think about it so much, investment in housing is a solid and profitable business due to its high demand, so it is the opportunity you have been waiting for to improve your finances and your quality of life.

See more “Forex trading – Fast & Effective Way to Get Rich

Why we should invest in real estate?

Have you ever wondered why when we talk about investing in real estate we always use the phrase secure your future?

Of course, at a glance we can understand that real estate investment is a safer way to grow our money and one of the easiest if we take into account that not all of us know how the stock market works.

In addition, acquiring a property, even when you do not plan to inhabit it, can be more beneficial than leaving your money saved in the bank , especially if you acquire one that is located in an area whose capital gains foresees a considerable increase.

However, To buy real estate can sound a bit scary and more when we do not have experience in the field: legal procedures, long payment terms, even the fear of not wanting to be tied to a place where we do not know if we are eventually going to stay.

Why Invest in Real Estate?

It is very likely that when we think about investment in 2021, technology and applications come to mind. The stock market and stocks, which for many years have been the epitome of what we consider to be an investment, has shown that they are not always very safe options, and that profits can quickly turn into losses.

Also, speaking through risks and probabilities makes people end up fearing these issues or trusting people who risk their money and savings, worsening their situation and ending up being the victim of fraud and scams.

That is why many millennials, while still interested in investing in issues that involve technology and those causes that help create a better world (such as renewable energy and the environment), are increasingly beginning to look into more “traditional” options like real estate.

Sure, investing in real estate has been one of the safest and most profitable strategies for investors for some time. But for some millennials, investing in real estate may not seem like an investment at all, especially because of the long waiting time that increases the capital gain – and therefore your money.

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Investing in real estate makes your savings grow

Saving is one of the ways that workers try to prepare for retirement. With the odds that this is no longer an option for millennials – saving has become the great hope in the face of uncertainty.

However, not all of us know how to save. For example, there are those who consider that having their pig at home is safer than doing it in front of a bank. Distrust of these institutions makes many consider saving their money without the possibility of making it grow.

On the other hand, those who decide to take their savings to the bank are also not very likely to see it grow. At least not as we would like.


To begin with, investing in real estate can be seen as a kind of insurance against inflation, especially when we take into account that it is in the face of inflation that real estate prices increase during this period. In addition, we must consider that fixed mortgages maintain the same rate, so that even when prices rise, your debt may not do so – in case you plan to acquire a loan with the bank.

So acquiring a property can bring you more benefits than simply saving your money, since the chances of your money being devalued are more dangerous for your money than for your properties.

Diversify your investments

As we discussed at the beginning, real estate is attracting the attention of those young people who are wanting to buy a secure pass for their future. There are those who are investing in super specialization to obtain higher paying jobs. Others are guided by their interests and passions and end up creating apps or supporting companies that combine technology and the search for a better future.

However, one of the tips that you should always consider when investing is to diversify your investments. Try to acquire diverse properties, from lots to residential houses or apartments for rent and vacation.

Invest in real estate as an expert

One of the secrets of savvy investors is that they never stop learning. Yes, there are many who fear real estate investing because they think they need to know everything from the beginning or be a doctor of exact science or something like that.

The reality is that you don’t need to be Sheldon Cooper to understand that to invest in real estate you need to go into the market and know what the possibilities and the probabilities are. Remember that time plays a very important role, especially when you have the opportunity to find real estate developments in pre-sale or in areas that are projected with an increase in capital gains.

And not to mention the amenities and vertical developments. More and more investors are betting on real estate developments that appeal to the quality of life of those who wish to live in them, especially if they are close to schools or residential areas.

Top 10 suburbs for buying investing real estate in US in 2021

Real estate has gained more spotlight in the last year – either because people started spending more time indoors, or because inflation in the sector scared both those who build and those who rent. The low-interest rates aroused the interest of those looking for a property to live in and the appreciation of the properties caught the attention of those thinking about investing in 2021.

Real estate remains an attractive asset class for investors looking to have steady cash flow and capital growth through rentals.

Real estate investing generates numerous benefits ranging from stability to property appreciation thanks to optimal market dynamics and allows investors to fully offset the expenses associated with servicing their mortgage through their monthly income from rental.

Although investing in real estate is considered a smart move in terms of profitability, it is not necessary to be an expert in the real estate market, but it does require analysis to know which the best cities to invest in, why, are and whether the property value increases at a faster or slower rate depends on the location. The best cities to invest in real estate in the United States have 3 things in common: jobs, population growth, and good prices in the real estate market. In this guide, we show you the best cities in which it is convenient to buy a house in the USA and the advantages of each one.

These are the top 10 suburbs in the United States to invest in real estate where investors say they will buy properties in 2021.

1.  New York City

The Big Apple is among the 10 best cities in the United States to invest in. According to a survey conducted by a real estate company, it found that 24% of respondents ranked New York as their top place to invest in real estate in 2020 while 16% rated it as their second option.

2. Boston

Considered the capital of the economic and cultural center of Massachusetts. It stands out among the best cities to invest in, it has important institutions dedicated to scientific, electronic, medical, and economic research, among others.

3. Houston, Texas

With a growing economy, Houston is one of the best cities to invest in real estate. It is the fourth biggest suburb in the US and a worldwide business center, it is also the entrance to Latin America. With reasonable accommodation options, high quality of life, and at a low cost.

4. Orlando, Florida

It is considered one of the best cities to buy Miami Florida real estate right now. With low-priced homes as well as interest, investors will get a good deal buying in Orlando.

Rents are high, making Orlando even more attractive to investors. Rental homes are an excellent investment option.

5.  Atlanta, Georgia

A perfect place to invest in real estate, which makes this city a buyer’s market. It is home to a dozen Fortune 500 companies including Coca-Cola and Home Depot.

6.  Seattle, Washington

Seattle has always been an ideal city to buy a property and still is. As the economy recovers; this city shows no signs of slowing down.

Large companies like Amazon, Microsoft, and Boeing are in Seattle. Many young people flock to this city to work in these big companies and the city is moving from suburban to urban and there is no sign that growth is going to slow down.

7. Dallas, Texas

It represents one of the fastest-growing cities; Dallas is one of the best cities in the United States to invest in real estate. With homes priced below 12% of their true value, it is a good time to buy in Texas.

With the technology industry on the rise. Dallas is the ideal place for people seeking long-term financial stability.

8.  Washington dc

It is the capital of the United States, as it is the seat of the political power of the most powerful country in the world, it is a city that offers the best conditions to live, study, and work. This is why it is an excellent place to invest in real estate.

Washington DC is considered an important option for real estate investments in 2016.

9. North Carolina

The city is among the ten best to invest in real estate and a job stability that helps the growth of the real estate market. A low foreclosure rate and strong commercial real estate opportunities. Real estate investors feel safe in this city, as it is always going to be on the rise.

10. San Francisco

Considered by many to be one of the most beautiful cities in the world, San Francisco was voted one of the best cities to invest in real estate in 2016. One of the cities with the best quality of life in the United States.