Investing in real estate is something often considered as “old style” and therefore viewed as an “ancient” method of securing one’s money - but it’s not. Indeed, real estate investments have never been as appropriate as they are now.

If you’re asking yourself why we’ll try to give you some answers here. The number one reason why investing in real estate is a smart thing to do even as we approach 2022: protection against inflation.

Inflation is back and is back in a big way. As expected, prices have risen as we leave behind the darkest days of the pandemic; but salaries haven’t followed the same trend. This means you are losing a bit of money every day: life costs more, and you earn the same.

Real estate investments can act as a defense against inflation. Because if prices keep rising, so will the values of homes and rents. Hence, if you invest in a property to rent, you’ll be able to follow the inflation growth trend and put fresh money in your pocket every month.

This is the second reason why real estate investments are a good thing. Buying a house to rent means having a regular passive income you can count on. Part of that income can pay your mortgage loan, the other part, for example, can be reinvested.

A real estate property can also be a little treasure to count on when things go wrong or when you want (or need) to cash in. As time goes by and inflation rises, if you keep the house in a good state you’ll be able to grow the estate value and convert it into money just when you need to: for your retirement, to buy a bigger house, or to fix an emergency.

Of course, you need to choose your real estate investment wisely. But generally speaking, the real estate market has an upward trend, and investing in some areas could literally mean seeing the initial investment rise by 1,5-2x.

So is real estate good for your investment portfolio? Yes, it is. It’s a smart and wise way to diversify your investments and has an ace up your sleeve in case something goes wrong.