For investors
We’ve often heard from friends, family, and acquaintances that real estate is a “good investment.” And indeed, investing our savings in real estate is a well-thought-out and smart decision. This type of investment generates returns through both the gross rental income from leasing the property and the profit from its appreciation in value.
High demand
There is exceptionally high demand for newly built apartments on the rental market, as they are more modern, advanced, and of higher quality compared to older properties. Furthermore, their rental potential is significantly better and more secure, even at higher prices, than that of non-new builds. For this reason, based on industry standards for rental income calculations, it is possible to estimate a risk-free, higher profit with an average rental period of 10 months per year. In addition to financial returns, the property will later provide a cozy home for family members and children. Keeping all of this in mind, we at iDOM pay special attention to the high quality of our developments and the long-term value stability of our houses and apartments.
Real estate investment or government bonds?
Due to the low interest rates currently offered by bank deposits, two low-risk, almost risk-free, high-return investments are commonly mentioned in everyday conversation: real estate and government bonds. Their similarity lies in their high value stability, security, and the fact that both can be quickly converted into liquid capital if necessary. The benefits from interest, income, and value appreciation may initially appear to be similar in the long term, leading to the question: which one is more profitable? The concise answer is, of course, real estate.
Looking at the past few years, the ultra-high inflationary environment has affected both the bond and real estate markets. High inflation temporarily boosted bond yields, but this also resulted in a significant deficit for the state, meaning that after inflation decreases, a reduction in bond interest rates will become economically inevitable. On the other hand, in real estate investment, a decrease in inflation will have a positive impact, as the more favorable interest rate environment and improved lending conditions will bring more buyers to the market, further pushing prices upward. New-built properties, in particular, fall into an exceptional category where value appreciation is still being experienced, and increasingly higher rental prices can be demanded for individual apartments. These factors combined ensure a relatively quick return on investment for future owners of new-built properties.
This clearly shows that, in the long term, real estate investment can achieve higher returns in a more secure environment compared to placing savings in government bonds.
Long-term rental or short-term accommodation rental?
Our projects, located in prime locations, are suitable for both long-term rentals and short-term accommodation services, such as renting out for a few days or weeks. For long-term rentals, the advantage lies in predictable and stable income with reliable tenants, while short-term rentals offer the potential for much higher earnings. However, alongside the positives, we must also consider the drawbacks to make the best decision regarding our real estate investment. For long-term rentals, this includes lower profit margins, while short-term rentals may be subject to uncertainty, constantly changing guests, and the whims of the guests themselves, as well as quicker wear and tear on the property. As future investors, we can weigh the pros and cons and decide which path to take. Regardless of our choice, by purchasing a new-build property in a prime location from iDOM, we can still grow our savings.
Why is iDOM a good choice?
In our projects, we are present as investors, developers, contractors, and general contractors. Project management operates strictly in-house to ensure full transparency and the sustainability of consistently high quality. We believe that we are creating value that will remain marketable in the long term, with our buildings standing the test of time for decades to come. Our goal is to meet the needs of our clients and customers with impeccable quality, offering excellent value for money, just as we have done in the past and will continue to do in the future.
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If we have piqued your interest or if you have any questions, feel free to write to us! Our colleagues will get back to you within one business day.