1. What to invest?
The most profitable form of investment according to Poles[1]:
1. Real Estate - 44.9% of Poles believe it is the most profitable form of investment,
2. Gold - shows 13.4% of respondents,
3. Investment funds – selected by .5,1% of respondents.
Let's look at the numbers
For properties let's choose as an indicator price change of agricultural land in the years 1992-2011
Please note that even in times of crisis, land prices do not fall
Source: ANR
Cena za 1 ha ziemi rolnej - Price per 1 ha of agricultural land
The prices of gold in 1993-2012. As you can see, the prices of gold dynamically reacts to the economic situation in the world.
Source: http://uncja.com/wykres_zlotopln.0.19930101.0.0.html
Ceny 1 uncji złota w PLN od 1993-01-01 do teraz (4971 notowań) - Prices per ounce of gold in PLN from 1993-01-01 to now (4971 quotations)
For investment funds based on instruments quoted on the stock exchange the index, which can be seen also on the space such a long period is a WIG. You surely remember what happened with funds during the falls on WSE
Source: Bankier.pl
So the old saying that the land never loses its value is always up to date.
Property prices are based on the economic turbulence better than gold or instruments traded on the Stock Exchange.
Of course it is true that ongold and securities in a short period of time, you can earn a lot, but you have to accept a high level of risk. You can, in fact, earn a lot of money,but on the other hand you can loose a lot, too.
Over the past four years the value of gold has increased by several hundred percent, the digits are impresive., You can here more and more opinions that the sudden increase is the speculative bubble and the situation can be reverse quite rapidly.
The recent crisis has painfully demonstrated that investing in the stock market is loaded with considerable risk Stock indices lost value after several tens of percent.
Investing in real estate is the most reliable form of reinvesting cash.
There are other arguments that back investment in real estate:
1. You can select a form of investment, which can get you multiple rate of return on capital after a long period of time, or invest in a property for rent and have source of stable and regular income.
2. Buying a property can be partially or fully funded by bank loans, which increases investors capability.
3. The supply of real estate is limited. You cannot artificially multiply the amount of land available for sale. This ensures market stability.
4. There will always be demand for land, smaller or larger. It is not possible for people to live without property.
5. Real estate is tangible. There is no virtual record on the account. It does not disappear.
6. Owner has 100% control over the property. No actions will be taken without your knowledge or consent.
7. The investor has an influence on the value of the property. You can make your own decisions and reap the benefits. An example can be change of use of land,house renovating, altering rent amount, renting land, for example, for advertising purposes. There are many possibilities.
8. Inthe real estate market, nothing happens suddenly. Investors are not surprised with the day-to-day stressful fluctuations in the value of their assets. As it is commonly said "They sleep peacefully".
If you are encouraged to get acquainted with the possibilities of investing in real estate, we invite you to contact us.
We also invite you to read the other articles on our site.