Will my first home still hold its value?

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We can agree that everyone wants to put their savings in a safe place, and most importantly, to make them grow. Yes, it seems that the ideal place to invest money is real estate. However, another question arises – what kind of real estate can you invest in, and which one is better, and which ones are not worth it?

Let us try to answer this question.

To start with, we can choose land plots. It is profitable to buy land plots and a house only in that case if you are ready to freeze your funds for a certain period of time. That means you can make a profit only after a certain period of time when the price of land will increase, and this happens only after the active construction of houses begins next to you, gas, electricity, and other communications are carried out. In other words, if you are looking for a quick profit, land plots will not be an option for you.

It seems that buying a house will be almost the same as buying the land. If you are looking for a place to live just for yourself, then yes, a home will be the perfect place to live. However, if you are looking just for real estate that can be bought and resold at a higher price in a short time, then we should pick something more suitable, and that does not take long.

Real estate will stay the most profitable asset to save money. But, the pandemic, quarantine, currency surges, in addition to cheap mortgages, have significantly affected demand, supply, and prices in both the primary and secondary real estate markets.

The fact is that housing prices are more “slow” so to speak, they do not immediately react to what is happening, so it is impossible to talk about whether they will retain their value with accuracy.

So the ideal investment for the preservation of value will be exactly the purchase of an apartment, a one-room apartment, or a house.

In addition, it should be remembered that it is necessary to buy an apartment at the stage of building a house; otherwise, you can use this purchase only for renting it out to tenants, which is not good. Indeed, during the construction of apartment buildings, the prices for apartments differ significantly if we compare them after the house is commissioned. There are times when buyers win almost as much as they invested.

In summary, if you take into factor the environment around your land, and not just its size and cost, you stand to gain a large increase in the value of your land.

Written by Bader Albader, market researcher.