The inflation is skyrocketing with 9.7% in March 2022 according to CBS (the Dutch central bureau of statistics). It is at its highest point in more than 40 years, since April 1976 to be precise.
How does this impact you?
Inflation is an average increase in prices and means that life becomes more expensive. Something that cost you 100 euros last year, costs you a whole lot more today. The painful thing about inflation is that the interest on your savings account is 0%, so while prices rise, your savings remain at the same level and are actually worth less because you can buy less for it.
So now what?
Unfortunately, you don't control inflation, but you have a choice on what you can do with your savings. Investing it.
Looking at the stock market over the past few months, it is not an obvious choice either, as it remains very volatile and has been in decline. The AEX (the index of the 25 largest traded companies on the Amsterdam stock exchange) has already fallen 9% since the beginning of this year.
🏢 Real estate as alternative!
In these uncertain times, real estate has historically proven to be a good alternative and there are several reasons for this:
- Inflation hedge: The idea is that real estate usually rises with inflation and rental income is also linked to inflation, so your investment can absorb the inflation shock well.
- Property appreciation is very strong in the long run: House prices in Amsterdam between 1995 and 2020, increased by an average of 7.1% per year.
- Stable rental income: Apart from the possible appreciation on the longer term, real estate offers you a stable income through rents. So even in turbulent periods, you continue to earn quarterly from your investment.
- Diversification: By spreading your investments and adding real estate, you reduce the risk and create a more stable portfolio.
🏠 Invest in Real Estate with BRXS
With BRXS, we make it very easy for you to invest in specific real estate starting from €100 and you earn interest through rental income (paid every quarter) and potential value increase on the longer term.