Advice published19.03.2018
All tips

An apartment is always the number one investment!

There is no doubt – you are always at a profit by buying an apartment. It is the property that can bring you income or, at the very least, return the investment. There is almost no example that the value of a property has fallen, except in cases that do not really depend on you, such as natural disasters, and huge changes in the world stock.

In Serbia, an apartment is always an investment, not an expense. That’s all – security for your family because you have the basics for life – a roof over your head, but there are still options available to you – you can rent it out and use that money, for example, to repay a mortgage loan or invest in a new one apartment. So, there are no losses.

Real Estate = Smart Investment

When choosing and buying an apartment that you want to be, above all, an investment, to rent it out or to be sure that its value will grow in the future, you should take into account several elements:

  • location – they say the old rule that the value of the apartment, in addition to the quality of construction, depends on the location, and in that case, it is always important that the apartment is in places that are frequent, close to college (many students decide to rent or buy an apartment), shopping malls square meters and finally – business parks or business centers (a large number of people who work there as a convenience looking for an apartment near the workplace)
  • urban plans – not only what has already been built, but also what is planned to be built can greatly increase the value of the apartment. That is why it is important to ask what the urban plan envisages for the part of the city where you want to buy real estate, what is planned to be built – schools, hospitals, shopping malls, business parks, i.e., all those infrastructure facilities that increase real estate value.

Grading offers apartments that are located in those parts of Kragujevac that are exclusive themselves, and at the same time have the potential to increase their value with additional facilities that will be built there. Of course, we are here for you to point out the solutions from the urban plans to make sure that we are your partner for a secure future.

The square meters bring more than savings

Now there is another dilemma – whether it pays more to save in the bank or buy an apartment. The bankers themselves are reluctant to admit that they are slowly losing the race because in recent years there has been a trend of reducing interest rates on savings, and experts advise citizens who have slightly higher savings that the best investment is to buy an apartment. The reason for that is the low-interest rate, which will be around 0.2 percent on an annual level, so saving money in banks will no longer be profitable as before when it was 6 percent.

What would it mean if a citizen who, for example, has savings of 40,000 euros has the option to buy an apartment or deposit that money as foreign currency savings? If he would deposit for one year with an annual interest rate of 0.2 percent, the income would be 80 euros – per year. If he bought an apartment for 40,000 euros and rented it out, the income would be from 150 to 200 euros a month, because that is the average value for renting a one-bedroom apartment in Kragujevac.

All forecasts say that the trend of reducing interest rates on savings deposits will continue, and for those citizens who want to invest money and make a profit in the long run, our advice is to buy an apartment. If you decide on this great decision Grading with its 25 years of experience can become your partner for a secure future.