Investing in real estate, smarter than a savings account?

13/05/2022

We have known it for some time: a savings account nowadays yields virtually nothing. Negative interest rates combined with inflation can even make you lose money by saving. Would you still like to invest your money wisely and make a certain profit? Then investing in real estate is advisable, and more specifically in homes for rent. Immowi explains.

Anyone who invests in real estate and subsequently rents out the property will first and foremost have an additional source of income. It is assumed that you can rent out your purchased property at a slightly higher price than your loan, so that you can receive a minimum amount of extra income. With a savings account, on the other hand, you often see the amount in your account unchanged. Due to inflation, in some cases that account is even shrinking!

A real estate investment, on the other hand, is a good protection against inflation. The value of real estate has only increased in recent years. Real estate prices always fluctuate with price increases. That means that when inflation rises, this can also have a positive effect on your property investment. 

But these price increases also mean a more expensive market to buy your real estate. So investors have to dig deeper and deeper into their pockets. The corona crisis has also had an impact on this. Read more about it here.

Investing in real estate vs. investing in shares

Don’t feel like leaving your money in your savings account and want to invest in shares? Of course you can! However, it is an art to keep an eye on the stock market and to anticipate a very unpredictable market. Consequently, investing in shares carries a much greater risk. 

Investing in shares does not only require a financial effort as investing in real estate does. Because your knowledge of the stock market must be so extensive that you can make the right investment, it also requires a large investment in time. Time to read up on the investment and time to continuously follow it up. A real estate investment has a concrete, physical value and requires less precise follow-up work.

You can also borrow money for a real estate investment

To be able to invest in real estate, you do not need to have the full amount for the asking price on your account. Only a certain percentage is needed to take out a loan from the bank for the remaining amount. You pay off that loan over time. But beware: the cost of this depends very much on the interest rates at which you can borrow at the time.

If you want to sell your real estate investment again, you can. With the right asking price, you pay off your earlier loan and you can even make some profit. After all, real estate undoubtedly increases in value.

When you want to invest in shares, you will not get a loan from the bank or the state. This is because investing here is too risky for the lender and consequently there is also great doubt about the ability to repay the loan in time.

Want to know more about real estate and the latest trends in the market? Then browse through our blogs.

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Immowi Assistance

There is often an invisible wall between marketing and sales. Companies invest in marketing campaigns to generate leads, but do not take the right actions to turn those leads into customers. To remedy this shortcoming, the strategic online lead generator Immowi is adding a new extension: Immowi Assistance. Until now, we delivered high quality leads thanks to online marketing, but with Immowi Assistance we significantly increase the chance of these leads actually becoming customers. Thanks to this approach, companies that do business with us know how to convert their leads and have a platform where the leads are offered on a silver platter, ready to be converted into valuable customers.
Extremely result-oriented
We could make it easy on ourselves and be happy with just bringing in high-quality leads. But it’s frustrating when your hard work doesn’t follow through. Immowi’s great strength has always been that we are very results-oriented. Many marketers have a reputation for selling hot air, because they can’t substantiate their returns. We did that right from the start, and that’s why we were able to grow from one to more than 10 full-time employees in a very short period of time.
With MyImmowi we just go one step further than what classic lead generators do. We go to the point where a lead becomes a valuable prospect. We help our customers convert their leads into customers.
Entrepreneurial mindset always in mind
MyImmowi builds the bridge between marketing and sales. We Make it as easy as possible for the client to contact the lead. You have to keep them warm. If you let a few days or even weeks pass between the moment a lead shows interest in your product and the moment you contact that lead, you will lose him. Then your success ratio will remain low. So, we try to immediately set an appointment in the diaries of our clients’ salespeople. You have to strike while the iron is hot.
Letting sales people do what they do best
Sales people like to sell, but they thoroughly hate administration. They keep track of their leads, their appointments and their deals in Excel, or even with pen and paper. They only keep track of their own prospects. Many companies do not have a sales pipeline. So, you risk sending a quotation to a customer after a successful meeting, but ultimately missing the customer because you forgot to follow up on the quotation. You’re almost done, but because of the lack of a decent digital process you miss out on a customer – and therefore also on turnover.
We pick the low-hanging fruit for our customers. We automate the entire process from lead to customer, and put it into one clear dashboard. This way, as a business manager, you can follow everything from A to Z. How many leads does a campaign produce? How many of those leads drop out along the way? How many become customers? What stage is each lead in? The personnel cost of sales people is very high in many companies. If sales people do not lose time calling leads and recording appointments – which we do – they can focus on what they are really good at. And that is still selling, closing deals.
Measuring ROI to the euro
We bring marketing and sales under one roof. That way, you can make your campaigns much more effective. Imagine that your campaigns for one brand on Facebook and on Google both generate 10 leads, but that 8 of those 10 Facebook leads become customers and only 2 of those 10 Google leads. If you’re purely marketing, you won’t get that information and so you’ll continue to put the same amount of effort into Facebook and Google.
If you also include the sales part and you do get that information, then you can turn the right buttons, redirect your budgets and generate much more turnover.