What real estate investors need to know in times of crisis

Fears and uncertainties plague the world. Sit down, take a deep breath and, thinking of a nicer tomorrow, let us calm the rippled waters. It's never so bad that we don't find a solution. We bring you some tips and information on how to carefreely arrange yourself in the time of pandemic-war.

Impact of the crisis on the market

The difficult period is behind us and even more difficult is ahead. Today, more often than ever, we ask where to store our finances to keep them safe. Rising inflation is almost certain, the economy has been plunged into crisis, and the outlook is unpredictable. In the stock and cryptocurrency markets, we recognize the word volatility to the last letter, and savings accounts promise insurance only up to CZK 2,500,000.

So where to go with the savings saved? How to store money so that it does not lose value and at the same time is secured in full?

Security in real estate

While the market power of fiat currencies is falling, stocks and bonds are falling, and cryptocurrencies resemble a weather forecast rather than a traceable asset, real estate remains a fixed haven. Due to the invasion of Ukraine, the demand for housing is increasing, and real estate prices will rise in the long run. It is therefore a very stable, conservative and certain solution for depositing funds.

The Golden Rule of Investing

We consider portfolio diversification to be the golden investor rule. We believe that every good investor has divided finances in several assets. Even within Investown, we are trying to enable better diversification thanks to properties located throughout the Czech Republic, various types of projects from apartment buildings to commercial real estate, appreciation from 7% per year and various investment periods from 12 to 60 months.

We are fully aware that not everyone can afford to own a property or even manage a property 100 km away, especially at a time of sharp rise in fuel prices. We believe that thanks to the effort to bring the possibility of investing in real estate closer to everyone, we can thin the ever-opening scissors of social strata.

Nothing to wait for

Somehow it was and somehow it will be. We have survived the pandemic and, with faith in a better tomorrow, we have heard the news of the invasion of Ukraine. Therefore, it is not advisable to wait for a better time. It is important to hedge at any time. It makes no sense to just watch market movements from a distance in the hope of better deals. On the contrary, it is very likely that good investment opportunities will quickly disappear, if you do not seize them immediately, in the portfolios of other investors.

Don't panic

Do you already have your investment strategy? Do not panic and stick to certainties. With us, you do not have to deal with lengthy paperwork or property management. We offer simple and worry-free investing without the need for daily market monitoring. If you do not understand stocks, bonds, cryptocurrencies and investing is your Spanish village, there is nothing easier than to choose real estate and wait for monthly profits.

5 reasons why real estate

  • The investment in the property is covered in full thanks to the pledge on the property.
  • In times of crisis, everyone still needs a roof over their heads.
  • In the long run, real estate prices are rising according to history.
  • As inflation increases, so do rental prices.
  • The investment has low volatility, is stable and low risk.

Despite the worsening outlook for the leading economies and the forecasts mentioned above, there is likely to be a further rise in interest rates and hence in household and corporate debt.

Bitcoin has lost about 74% in less than a year. Ethereum, the second largest, is in a similar position. This cryptocurrency traded for nearly $4,900 last November, and is currently priced around $1,250.

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