The most profitable real estate investments in 2022

The viability of real estate investments and the many options they pose, have been known for many years. Perhaps since time immemorial, although today it is especially convenient to engage in it. Complete the picture, act wisely and minimize risks. But depending on the wealth of options, there are also many dilemmas. One of the most basic of them, is the simple question: What is it especially worthwhile to invest in real estate? As of 2022, here are some insights that may help:

Corona effects

Speaking of 2022, it is impossible not to refer to a key factor that continues to affect society as a whole: the corona. How has this phenomenon affected the viability of real estate investments? On the one hand, crises create opportunities. On the other hand - the uncertainty and damage to the income sources of many, have increased caution. The crisis prevents various tenants from paying rent. And commit to a mortgage.That is there is a tendency to stay away from risky real estate investment channels and people are more likely to go for sure.

Investment in small amounts

In light of all this, the most profitable real estate investments in 2022, in fact differ from investor to investor and depend on different personal parameters. However, if you want to invest with a careful approach in light of the situation, immediately think about risk diversification. In relatively small amounts in each direction.This means land instead of a built property or a built property that is not in expensive places, maybe a small office and maybe a property abroad. Other ideas, are investing through real estate funds or investing in shares of real estate companies. Purchasing private warehouses for rent is another investment channel with relatively low amounts. Although in the country it is less common, abroad more (especially in the US). From the aspect of demand for these warehouses, an ongoing need can be relied upon, even in times of crisis. In fact, it is precisely in times of crisis that people move into smaller rented apartments. In such cases, it pays to store some of the items in the warehouse.

In Israel or abroad?

A classic dilemma for many investors is whether to invest in Israel or abroad? In principle, investing in local real estate will be safer. Simply from the fact that you are close to the property and also familiar with the social environment in which it is located. Another factor that increases the attractiveness of investments in Israel is the local purchase tax, which has dropped to 5%, after being 8% since 2015. On the other hand, abroad there are many more investment options. For example, housing complexes ("multifamily") are more common In the US.

Offices for rent

The trend of remote work, combined with the compulsion to work remotely because of the corona, somewhat reduces the need for offices. However, it does not seem realistic that most of the population will move to work from home. For many types of business, this is simply irrelevant. Indeed, those who invest in such a direction should take into account the slight effects of the situation: a decrease in demand, which leads to a decrease in the level of rent. Slight reduction in the size of the areas that businesses are looking for (since they work a little more from home and generally want to save). A need for increased flexibility and therefore a preference for large spaces, where businesses can be organized in different ways.

The classic options

Buying a second apartment for investment is a classic option, which continues to be attractive. The same applies to the purchase of properties for the purpose of improving and selling them.