What you invest in depends on your risk profile. Despite proven to be satisfying and lucrative, real estate investing is not the easiest option for beginners. The pandemic has hit the property sector hard. While most property consultants believe recovery is on the horizon, it will depend on the performance of the job market and economy.

Is investing in real estate worth it in a post pandemic era? Here are the top reasons why you should include real estate in your investment portfolio.

1. Lower Risk
Real estate is a physical asset. Land holds its value and its price increases over time because there is a limited supply. Because its performance isn’t completely dependent on its managers, real estate investments are of a lower risk investment compared to stocks. With the current condition of the market, real estate prices may have already hit rock bottom, hence it is a good time to secure your investment now.

2. Competitive Returns
Malaysia is a renowned travel destination. It surpassed a landmark of 20 million international tourist arrivals in 2019; an increase of 3.7% compared to the same period prior to the year before. The country has immense potential to entice even more tourists once the border is reopened and the pandemic is contained. The positive growth of the tourism sector will in turn create a demand for more investment properties to host the tourists, hence higher returns from rental income.

3. Less Market Fluctuations
When the economy takes a downturn, real estate investments are more resilient to changes in the economy compared to stocks and bonds as people still need a place to stay. Instead of buying a property, more people may start to rent. In turn, higher demand in rentals will bring up your cash flows. If the economy does well, property prices increase and you will see higher appreciation on your real estate.

4. Attractive Financing
If you want to grow your investments at a quicker rate, you can choose to borrow money to fund your investments. Stocks are at a higher risk, so your borrowing rates and margin requirements tend to be higher. On the contrary, real estate has a lower risk because it is a physical asset that holds its value. With the recent financing schemes introduced by the government, you also tend to pay less and are in a better position to secure your property.