Real estate as an investment or form of savings

Real estate is not only a place to live or work, but can also be a good type of investment that can bring the investor a good and safe return.

As a rule, the price of real estate increases continuously, and whether you will use it for rent, personal use or as a form of savings, it will almost certainly increase in value over time.
Renting a property can significantly increase the profitability of its purchase. The income from the "rent" provides you with a net profit if the real estate was previously owned by you, or it can cover the cost of repaying the loan with which you bought the real estate. The income also covers maintenance and overhead costs. Remember - empty real estate that is "dead equity" is the most expensive real estate.
For the property you plan to rent, it is important to determine what type of tenant you want: families, students, business people or tourists for short-term rent.
If you want to focus on long-term rent and, for example, families, the property should be larger in square footage and with more rooms, near schools and public transportation.
If your target group is students, focus on smaller apartments near public transport and, if possible, the university.
Employed people, as a rule, will find proximity to amenities, as well as proximity to public transportation or at least one parking space next to the apartment, important.
With real estate for short-term rent, location plays a key role, i.e. proximity to attractive facilities, or at least accessible public transportation, and it is also not out of place to have your own parking space.

You can also buy real estate as a form of savings.

Namely, the value of financial assets depends on various factors such as various economic or political changes, and can fall overnight. The instability of the financial market increasingly affects the decline of citizens' trust in the traditional form of savings.
While, for example, interest rates on term savings are getting lower, real estate prices are continuously rising. By selling or renting in good market conditions, you can make a profit that you might never make if the money was sitting in the bank.
Therefore, it is not surprising that investing in real estate is one of the most common and popular forms of investment in Croatia.