Real estate is the cornerstone of many investment portfolios. The Monarchist portfolio is a third gold, a third cash, and a third real estate. Well, real estate is a very fine investment class. It can generate money every month. Money to reinvest.
But real estate is very capital intensive. Unless you want to buy a building in a village in Eastern Europe, the chances are that you need a mortgage. So you have to borrow money. This means that you have to take account of WOZ (you do, however, file an objection every year because it costs nothing and can save you the costs on your tax ring) but also with the interest. Perhaps you can deduct the interest on your mortgage from the tax you have to pay. If you do as I do, you do not pay tax, then this obviously does not apply.
This means that you run considerable risks if the mortgage interest rate is not fixed. Fixed mortgage rates generally cost more. But that means you will pay more if the central banks raise interest rates. This directly affects the interest you pay on your property.
What happens if real estate financing becomes more expensive? Indeed, the real estate is going to be worthless. After all, there are fewer people who can afford it. That means, however, that you can also earn money from it. After all, the idea is: buy cheap and sell expensive. Some other methods I discussed in my podcast. Do not want to miss such a thing? Here you will find the RSS code. You can copy this on the spot where you listen to podcasts. Like iTunes.
But we have experienced a collapse of the real estate world not so long ago. Do you remember the financial crisis of 2007? Lehman Brothers, Bear Stern, Fortis, ABN AMRO. They all got tired of American problem mortgages. Mortgages that are most likely part of your pension fund’s investments. Do you want to take advantage of the opportunities to make really good money if the financial sector collapses? Then the Survive The Collapse Report is the ideal starting point for you.