Post by account_disabled on Jan 24, 2024 7:04:46 GMT
Investing in real estate during an inflationary financial crisis is the best way to protect your cash from depreciation. This statement comes as an analysis of the years of experience that Dev Inf Real Estate Company has in the Albanian market, as well as a summary of knowledge from real estate experts in the world. We are witnessing an increase in the cost of living, supported by changes that started with the pandemic, but then the war in Ukraine and beyond. It should be considered that the increase in living costs will necessarily lead to an increase in the number of families in financial difficulties.
Savings will decrease, and income will have to go Job Function Email Database mainly to the consumption of basket products. Rising interest rates will, in many cases, force consumers to sell their homes. Many people will be forced to sell their homes at a cheaper price. This can prove to be a golden opportunity for those potential buyers who want to further expand their real estate investment volume. According to the Bank of Albania, for the second quarter of the year, core inflation reached the level of 6.3%, the highest ever recorded, and this led to the increase of the interest rate to 1.75%, further deepening the contraction of purchasing power. All over the world, the purchasing power of borrowers is starting to run low. This situation can reduce the financial potential of new buyers due to the high costs of buying a house and also by reducing the demand of existing owners who, if they are in financial difficulties, may be forced to put their house up for sale.
Investing in real estate during an inflationary financial crisis is the best way to protect your cash from depreciation. Just take a look back at what you could buy 10 years ago and what you can buy now for the same amount of money, and you'll realize that the value of money has changed substantially over the course of a decade. The real estate market is an open market, easily accessible to anyone with enough liquidity to become a real estate owner. Therefore, we believe that previous economic crises have also had their impact on real estate, this would not be the first time. However, experience has shown that the crisis brings opportunity for the most prepared.
Savings will decrease, and income will have to go Job Function Email Database mainly to the consumption of basket products. Rising interest rates will, in many cases, force consumers to sell their homes. Many people will be forced to sell their homes at a cheaper price. This can prove to be a golden opportunity for those potential buyers who want to further expand their real estate investment volume. According to the Bank of Albania, for the second quarter of the year, core inflation reached the level of 6.3%, the highest ever recorded, and this led to the increase of the interest rate to 1.75%, further deepening the contraction of purchasing power. All over the world, the purchasing power of borrowers is starting to run low. This situation can reduce the financial potential of new buyers due to the high costs of buying a house and also by reducing the demand of existing owners who, if they are in financial difficulties, may be forced to put their house up for sale.
Investing in real estate during an inflationary financial crisis is the best way to protect your cash from depreciation. Just take a look back at what you could buy 10 years ago and what you can buy now for the same amount of money, and you'll realize that the value of money has changed substantially over the course of a decade. The real estate market is an open market, easily accessible to anyone with enough liquidity to become a real estate owner. Therefore, we believe that previous economic crises have also had their impact on real estate, this would not be the first time. However, experience has shown that the crisis brings opportunity for the most prepared.