The Truth? Your House is Not an Investment
Without a doubt, buying a house is essential in people's lives, especially in their first home. Buying a property achieves security, tranquillity, and much more. But many specialists understand that it is not an investment.
The idea that a residence is an investment has always existed. Also in the Cyprus marketplace. It is understood that something we buy today will be worth much more decades later. Properties increase in value over time, accompanying demographic, economic, and housing variables. But this is not always guaranteed. In many cases, these factors disappear with the appearance of new investment opportunities. All these stated variables can fade over time. Therefore, it is always essential to consult a real estate agent before making decisions in Cyprus real estate universe for buying properties for sale.
Let us go to the facts that matter to support the argument. Clearly, things are only appreciating slightly more than inflation. As simple as that.
In specific scenarios, the properties can be appreciated in a wide range, but it happens most of the time in particular real estate situations and with enormous demand and extraordinarily little supply.
Having said all this, we must go to the central point of our analysis: a house is not an investment for the simple reason that it has only one purpose: to serve as a refuge to live in. Therefore, it is not an investment as when we buy shares of a company or treasury bonds. Investing in a property is investing in our lifestyle.
What we mean by all this: that our living property is no longer an investment, in the sense that when using it, it is not immediately available for purchase and sale. This does not mean that it cannot be sold. We want to explain that this is not a conventional investment for the long term. Alienating it can become a problem rather than a solution and an opportunity to earn money.
In this sense, it is also good to understand that a house or an apartment can never be an investment if it is not in our plans to sell it. And this, beyond everything we explained in the previous paragraphs. And this is where a fundamental question arises: should you buy or rent a home? What’s your best real estate market investment?
There are many cases of people who rent their houses permanently and use their money for other types of a great investments. It is a good decision, only if you know exactly how to behave when investing your money. Wrong choices can lead us to ruin in no time.
In the meantime, it is worth noting that, as you do not have a property, you do not have the possibility of accessing a mortgage loan, which in some cases are more accessible than personal or commercial loans. That is why we say that each situation must be analyzed in a particular way.
Ultimately, you do not always think of your home as an investment. Other types of investments, such as financial assets, invest in stocks, or real estate, generate an income.