Why are there still investors in "brick"?
We reveal the reasons why people continue to invest in bricks and mortar after the economic crisis and the real estate bubble.
Many people call Monapart because they want to buy a flat to "invest" and "then rent it out". Before I started working in the real estate sector, I thought that real estate investors were people with a lot of money who had a lot of wealth. Over time, however, I have come to realise that they also many "normal" people prefer to transform their savings into brick rather than "leaving them to perform little or nothing on a bench". or play in other investment leagues, such as the stock market, art, business or musical instruments (to give examples of a very diverse nature).
Why are there still so many investors in "bricks and mortar" after all that has happened? Here are some answers to this question:
* It is easy to understandYou buy a flat, you rent it and that brings you a little money every month. On the other hand, who understands the stock market, who understood the banks' preferred shares?
* It has low barriers to entryAnyone can buy a property, provided they have the money, of course. On the other hand, to trade on the stock market, you will probably need the services of a broker or a banker, characters that many people find somewhat repulsive.
* It is an investment with potential residual useIf, after investing your savings in a small flat, your life goes wrong (you lose your job, your partner leaves you, or you decide to break up with everything), you can always move into the flat. Of course, if you put it in the stock market, maybe they would let you live on the stairs of the "Borsa de Barcelona" on Passeig de Gracia, which is a Premium Location.
* Can be playedYes, yes, it sounds silly but it is not. Our money will cease to be a number in a bank account and will materialise in a pile of bricks, a parquet floor, some taps, some cupboards. That is reassuring.
* DIY (Do It Yourself)Investing in a home is trendy! You choose the flat, you can choose the tenant, you can manage it. Do you really understand anything of what your banker tells you when he "advises" you on which "structured fund" of investment is best for you?
* No need for training: You don't need to take a course or read the economics section of Expansion. Chupao.
* RelaxOnce you have chosen, bought and rented your little flat, you can relax. In the meantime, your smart colleague who invested in the stock market on the advice of a "trusted broker", is shaking every day when he buys the newspaper.
Despite these explanations, there are five common mistakes in the approach of "amateur" retail investors. But that is another topic I will cover in my next post!
