Blog INVESTITIONEN

Why is real estate investment still worth it in 2023?

In the investment market, options for participants are constantly increasing – cryptocurrencies, a continuously expanding catalog of alternative investments, among which we can highlight investments in alcohol or works of art… Reality is subject to constant changes, and this also affects the landscape of the investment scene. Investing in real estate in 2023 consistently remain at the forefront of the list of options, which – for both experienced players and newcomers – constitute a reliable and proven method of capital multiplication.

Why is real estate investment still worth it in 2023?

Despite the diverse offers available in the investment market, investing in real estate remains the preferred form of capital placement for many participants. This occurs for several significant reasons, which we will discuss below.

  • Property value appreciation – despite ubiquitous short-term market fluctuations, real estate generally appreciates in value over the long term, providing buyers with confidence and predictability in returns. For those with a future-oriented mindset, this is excellent news. Savvy investors recognize that investing in real estate is a forward-looking and rational approach, ensuring profits not only for themselves but also for future generations. Key factors influencing this area include the property’s location, its condition, and the economic situation of its surroundings. Properties in attractive locations tend to show a long-term upward trend – Cofresi Hills Residence investment apartments exemplify this concept. Situated in the increasingly popular city of Puerto Plata right by the ocean, they present an opportunity that cannot be ignored. Considering the rental yield in Puerto Plata, which ranged from 6.5% to 7.8% gross in 2022 (Global Property Guide, 2023), surpassing the global average of 5.6% (OECD 2023), it becomes a textbook example of an excellent property location translating into investment success. Impeccable property condition is also a supporting factor for investment success. Apartments in Cofresi Hills Residence are meticulously designed, considering the highest quality standards. Each of them additionally offers a view of the azure ocean waters, providing guests with exceptional experiences literally within sight. The economic and political situation of the investment country is also a crucial consideration. A safe and stable environment is a dream scenario for investors, which is why our choice fell on the Dominican Republic. The local government has been taking steps to encourage foreign investors to engage in economic activities within the country. As an example, efforts have been made to improve the quality and transparency of regulations regarding property rights. Data from the World Bank’s „Doing Business“ report for 2023 indicates that over the past two years, the Dominican Republic moved up by 15 places in terms of ease of property registration. Additionally, we can be confident in the safety of the place – according to the World Tourism Organization’s 2021 data, the Dominican Republic boasts one of the lowest crime rates in the world. All these compiled data can only signify one thing: an investment success lurking in the Dominican shadow!

 

inwestowanie w nieruchomości

 

  • Passive income – typically manifested in the form of rent received from tenants. A steady cash flow allows the investor to enjoy the fruits of their investment, such as reorganizing their current lifestyle, reinvesting profits, or fulfilling previously unrealized dreams.
  • Stable element of an investment portfolio – investment experts have always advised diversifying portfolios. This process involves allocating funds for investment in various assets, such as stocks, bonds, or precisely real estate. The principle of not putting all your eggs in one basket holds true in this case as well. Additionally, it is essential to ensure that the basket includes investments with ‚hard shells,‘ providing a stable foundation for other positions – precisely real estate investments.

 

Investor concerns – effective solutions

Despite the obvious advantages of investing in real estate, there are also areas that keep many potential investors awake at night. Among them, we can certainly highlight issues related to the administrative management of investments or the management of the property itself. These aspects generate the need to dedicate additional time, unless the investor decides to collaborate with an external partner that will take on the burden of fulfilling less pleasant duties. It is worth noting that actions in the property management area are essential for maximizing the potential of investment apartments. In this case, it is necessary not only to carry out tasks within the scope of classic property management but also to implement strategies and methods tailored to the specific needs of the investment. The management team of luxury apartments at Cofresi Hills Residence takes all these aspects into account, providing investors with professional care throughout the investment process.

We will assist you with all the necessary formalities at the beginning of your Dominican adventure, and then we will ensure comprehensive apartment management after its rental to guests has commenced. If you have any questions and would like to learn more about the offer details, do not hesitate to contact our team. Transform your life now by undertaking a financial venture in the land of flourishing palms – the Dominican Republic, which offers a unique blend of lucrative investment opportunities combined with Caribbean pleasures!

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