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Real estate: a tangible asset with a long horizon

Real estate: a tangible asset with a long horizon

Ravi Morton, 03.27.2025

What does the direction include?
Real estate is apartments, houses, commercial premises, land plots and other objects that can be acquired. They are used in different ways: someone retains capital in them, someone passes, someone acquires for themselves with the calculation for the future.

Why is this format interesting?

This is one of the most understandable and tangible methods of investing. For centuries, people have kept value in homes and land. At the same time, such an asset does not disappear, is not lost in numbers and does not directly depend on fluctuations in the stock market.

What are the approaches?

  • Buying an apartment/house with an eye for a long time - for subsequent use or as a family asset.
  • Commercial real estate - offices, warehouses, shops that can be taken or used in business.
  • Suburban areas - Sometimes they are purchased in areas where infrastructure development is expected.
  • Participation in real estate funds (Reit) - If you do not want to directly own the object, but is interested in participating in this sector through the fund.

What is important to consider?

  • Location - One of the main factors. The development of the district, transport, infrastructure greatly affect value.
  • The condition of the object - Does it require repairs, what maintenance costs, how liquid it is.
  • Legal purity - It is important to carefully check the documents, especially when buying secondary real estate.
  • Budget planning - It is necessary to take into account additional costs: taxes, registration, maintenance.

The pluses of the direction:

  • The object remains physically accessible and understandable
  • Long -term stability
  • Can be used for different purposes - personal, family, business
  • Suitable for those who appreciate the material side

Cons that should be understood:

  • Low flexibility - quickly “get out” from the object may not be easy
  • More starting capital is required than in other directions
  • You need to consider the cost of maintenance
  • Prices can fluctuate depending on the market, region and demand

Where to start?

  • It is clear to understand why you are an object: for life, preserving funds, transfer in the future.
  • To study the market - not to rush, watch the dynamics of prices, developers, offers in different areas.
  • Consult with independent specialists: lawyers, realtors, architects (if necessary).
  • Weigh all the pros and risks before making a decision.

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Linda Brown

The content is always so well-researched.

David Brown

This blog is a must-read for investors.

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