Investment Properties – Sale

What is the purpose of investing in real estate? The return, or appreciation of invested funds in the case of real estate investments, has two parts. 

The first important part is the regular income in the form of rent. In the case of e-Finance investment properties offered for sale, this annual yield ranges between 3 to 4.5% of the property's value. This yield is annually adjusted for inflation, and therefore it can be expected that after approximately five years, this yield will approach 5% annually. 

The second part of the appreciation is the growth in the market value of the property. The value of real estate always increases in the long term. For example, since 2010, the price of real estate has increased by more than 120% in the long term (source: HB Index), i.e., an average of about 10% per year.

That means if you buy an investment property today and sell it, for example, in ten years, it is likely, according to historical indicators, that its price will increase by more than 50% during these ten years, and it will more likely approach double the value. And in the meantime, you will still collect regular rent.