Where to Invest in 2023
With the year’s end approaching, people typically recap the highlights of the year and plan for the future. The same thing applies to finance. And here comes a logical question, “Where to invest in 2023.” Popular assets such as oil, gold, bitcoin, USD, or EUR are normally affected by fluctuations caused by political and economic instability or even the media hype triggered by opinion leaders.
Can you find an instrument that can generate profits even in an unstable world? You sure can!
Real estate: Where to invest in 2023
If you follow me on social media or read my blog articles, you know that I’ve already mentioned that real estate is one of the most profitable investment instruments. This is backed by arguments and relevant figures. Depending on investment items, investors receive a medium-risk or low-risk instrument with an average annual return of 5–7% when renting out housing or an average of 30–40% when selling it.
Why the degree of risk may differ for different real estate assets? It all depends on individual factors:
- Type of your item (residential or commercial real estate and years of construction)
- Location (city, location in the city, and the number of tourists/tenants)
- Developer (plus your item condition for new real estate) for finished projects
- Other factors.
Profit depends on several factors:
- Whether an investment is made at the construction stage or finished housing is purchased
- Housing grade
- Location
- Terms and conditions offered by the developer company or fund that manages your property
- Other aspects
All these factors show that investors have many options to choose from. But how can you avoid mistakes and make the right investment?
I believe that you’d want to invest in real estate in a country with a stable political and economic situation. It must demonstrate an increase in the population’s welfare and property prices.
The Czech Republic is one of these countries. I thoroughly researched this market and also ran several projects in this region. And I’ll be happy to share with you why real estate in the Czech Republic is one of the best answers to the question, “Where to invest in 2023”.
Real estate to invest in 2023
This is a residential building in the historical center of Prague—650 feet away from Wenceslas Square. The building has 37 apartments and three commercial premises. In 2021, the entire facility underwent reconstruction, and now the apartments are waiting for their owners.
Why this item is a profitable investment:
1. Favorable location. The building is located in the historical part of the city, i.e., a place where the demand for housing for permanent residence or rental is super high.
2. Demand exceeds supply. In Prague, the demand for real estate is constantly growing. Taking into account the development rules, developers simply have no time to cover all that. At the beginning of 2021, less than 5,000 apartments were put up for sale, while it was 2,850 in early 2022. Feel the difference.
3. No need to wait. Investors usually wait until projects get finished and invest at the construction stage. It involves its own risks, e.g. those associated with your developer’s reliability. Here we have the finished project: investors can inspect it at any time.
4. Real estate prices keep growing. Real estate prices grow by more than 20% per year. Just like the cost of rent which increased by 14.9% in 2022. Overall, the benefit is obvious both for those who will rent out housing and for those who plan to sell their apartments over time.
How to make money renting out real estate in the Czech Republic
Renting out housing is a long-term investment. Your family budget will be regularly replenished with an amount you get doing almost anything.
Pros and cons of renting out housing:
Pros | Cons |
You receive a stable and regular income. | You have to search for and check your clients. |
Your income doesn’t depend on the time of year and remains practically unaffected by the situation in the real estate market. | You have to do the paperwork. |
You set the renting rules. | You have to maintain your real estate from time to time. This includes minor repairs, fixing utilities, etc. |
But you can ignore the cons if you let a reliable property management company, such as the FIS fund co-owned by me, tackle all of that for you.
What investors get:
- Property management
- Item maintenance.
- Searching for clients
- Reporting.
As you can see, the company takes charge of all the matters that require time and sometimes personal involvement from property owners.
If you wish to learn more about the project, investment, profit, and profitability and get detailed information about the company, simply grab the presentation.
Real estate in Prague isn’t just an answer to the question, “Where to invest in 2023.” It offers an ambiance, history, and a special aura. The idea is simple: just compare apartments in new buildings on the outskirts and in the historical center. After all, here you’re not just an observer; instead, you participate in history. I travel a lot and know firsthand that in order to get the feel of the city, you must live downtown.
Download the presentation and check the figures. All the data is up-to-date.