Is it worth investing in real estate?

The year 2025 is fast approaching, and with it come investors' concerns about housing prices and the projected increase in property values. In this article, we will discuss both the advantages and disadvantages of investing in real estate, as well as compare this form of capital investment with investing in gold. Is it worth investing in real estate, or is it better to invest in precious metals? Read on to learn more and make an informed investment decision.

Apartment prices in 2024: what are investors concerned about?

The year 2024 has raised many questions about housing prices and potential investment risks. Investors are wondering whether it is worth investing capital in real estate in the face of changing market conditions. Among the main concerns are:

• Interest rate increases – higher interest rates may affect the creditworthiness of potential buyers, which in turn may reduce demand for real estate.
• Changes in regulations – new legal regulations may affect investment costs and the profitability of renting apartments.
• Risk of recession – a global economic slowdown may affect property values and market stability.

Despite these challenges, many experts believe that investing in real estate can still be profitable. However, it is crucial to have a thorough understanding of the market and current trends. Investors should pay attention to location, building quality, and potential changes in the legal and economic environment. It is also worth considering diversifying your investment portfolio to minimize risk. What does this mean? First and foremost, it means securing your assets using various assets, not only real estate, but also gold!

What is the projected increase in real estate prices for 2025?

Forecasts for 2025 indicate a significant increase in real estate prices. Experts predict that the real estate market will continue to grow dynamically, which is the result of several key factors. First of all, low interest rates and growing interest in real estate investments mean that demand for apartments and houses is constantly growing. As a result, real estate prices may increase by as much as several or even more than ten percent over the next year!

It is also worth noting demographic changes and urbanization, which have a significant impact on the real estate market. More and more people are deciding to move to larger cities in search of better living and working conditions. This, in turn, leads to an increase in demand for apartments in city centers, which further drives up prices. Investors who decide to purchase real estate in 2024 and 2025 can certainly count on attractive returns in the future.

Advantages of investing in real estate

Investing in real estate is one of the safest forms of capital investment. Real estate tends to appreciate in value over the long term, making it an attractive option for those seeking stable, long-term investments. The increase in real estate value is often higher than inflation, which means that the value of such an investment grows faster than the cost of living.

Passive income is another benefit of investing in real estate. Renting out a property can generate regular income that can be used to cover mortgage costs and even generate profits. Real-life examples show that many investors have achieved financial independence through wise property management.

Investing in real estate also allows wealthy investors seeking new forms of protection for their accumulated capital to effectively diversify their investment portfolios. Owning different types of assets, such as gold bars, gold bullion coins, gold numismatic coins, stocks, bonds, and real estate, can minimize risk and increase potential returns. Real estate is less susceptible to sudden market fluctuations compared to other forms of investment, making it a safe choice for cautious investors. However, this does not mean that this way of investing money is without risk and disadvantages!

Disadvantages of investing in real estate

Investing in real estate, while it may seem attractive, has certain disadvantages that are worth considering before making a decision. First of all, the initial costs are usually very high. Purchasing real estate requires significant financial outlays, which means that not everyone can afford it. In addition, maintaining real estate involves regular expenses for maintenance and repairs. You also need to remember about the need to devote your own time, considerable stress, and taxes! Certainly, investing in real estate is not a way of investing capital for people who do not have sufficient knowledge or even skills—unlike, for example, gold, which anyone can invest in!

Another important aspect of investing in real estate is market risk. The value of apartments, houses, or land can fluctuate significantly depending on the economic situation, which can lead to financial losses. In addition, lack of liquidity is another problem—selling real estate can take a long time, which means that it is not always possible to quickly recover the invested funds. The main disadvantages therefore include:

• high initial costs,
• regular maintenance expenses,
• market risk,
• lack of liquidity.

Property management, which can be time-consuming, should also not be forgotten. Owners have to devote a lot of time to managing rentals, resolving issues with tenants, and maintaining the technical condition of the building. All this means that investing in real estate requires not only money, but also a lot of commitment and patience.

Is it worth investing in gold instead of real estate?

Investing in gold and real estate are two popular ways to secure capital. Gold has been considered a safe haven for centuries, especially in times of economic crisis. Real estate, on the other hand, offers stable rental income and potential long-term appreciation. But which of these two investment methods is more profitable?

1. Stability and security. Gold is often seen as a safe investment because its value is not directly linked to financial markets and the US dollar exchange rate. In times of crisis, when the value of stocks and bonds falls, the price of gold usually rises. Real estate also offers a certain level of stability, but it is more vulnerable to market fluctuations and local economic conditions.
2. Passive income. Investing in real estate can generate regular rental income, which is a big plus for many investors. Gold does not generate passive income—its value is based solely on price increases—but it also does not involve additional costs, which is the case with apartments, houses, and land.
3. Increase in value. Real estate has the potential for significant appreciation over the long term, especially in developing locations. Gold can also increase in value, but its growth is usually less dynamic and more predictable. However, this is an advantage—gold bars and bullion coins guarantee steady growth in value with very little investment risk. Gold is more liquid and easier to store.

In summary, the choice between investing in gold and real estate depends on individual preferences and investment goals. Gold offers security and stability, while real estate can provide regular income and potentially greater appreciation. It is important to carefully analyze your needs and risks before making an investment decision.