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Hi everyone, in this post I'll be talking about one of my future investment strategies. Of course I will always keep investing in the stock market and maybe in crypto, but the real key to financial freedom, in my eyes, is real estate.
Investing in real estate is in my opinion by far the safest and best option to grow your wealth. When you buy a house, apartment, garage box, plot of land etc, this property doesn't just rise in value over time because of inflation and increasing demand for housing, it also gives you a stream of passive income. If you grow your portfolio big enough, it will probably make you enough money to live from or to do a lot of other things with.
For example, let's say you buy a house with a mortgage and you rent it out. You can then probably cover the monthly costs with the rent that you earn. So when your house is paid off, you have basically already earned it back in the form of rent and all the rest is just pure profit.
I will probably just start off with a simple garage box tho, I'm just 18 and I'm still studying. I don't have enough money right now to buy a garage box with and don't want to get a mortgage at this age yet, especially when I don't have a job, the bank probably also won't lend me any money now. But I have set a goal for myself that by the time I'm done studying (around age 23) I want to buy my first garage box. Garage boxes are now worth between 20 and 25 thousand euros where I live and can make you between 100 and 120 euros per month. The demand will probably keep rising, as the population of Belgium is growing and more and more people will need a place to store their cars or other stuff. Hence, the prices to buy/rent a garage box will probably also keep going up.
If I had enough money right now, I'd buy a house somewhere in the suburbs and try to get the permits to divide the house into a couple of apartments to rent those out. I would do this because with an apartment, you get more rent for what it's actually worth. If you would rent a house with 3 stories in Antwerp, it would probably cost you between 1.5-2K/month, if you rent an apartment, you're lucky to find one for €700-€800 per month. If you have a house with 3 stories and rent every story out as one apartment, you'd get at least €2.000 per month, which is more than if you'd just rent the house out as a whole.
The ultimate dream, of course, would be to own a lot of real estate (in every branch, diversify your portfolio you know) and be able to pay off properties with the money I get from other properties. Not only just for the money, but also because when you buy a house and land, this has some real value. A stock is 'just a part of a company' and people pay for it what they think it's worth, cryptocurrencies are even more just worth what people think they're worth. Housing is something people will always need, just like food, and this has real life worth. You can touch a house, you can touch your ground, you can't touch your Tesla stock or Bitcoin.
Investing in real estate may not be as interesting and it may not get you the same kick as investing in stocks or crypto's, but it's at least as good of an investment. It adds real worth to your portfolio and is the definition of 'let your money work for you'.
DISCLAIMER: THIS IS NOT FINANCIAL ADVICE. ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING.
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