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Why real estate?

Earn two types of return. One for today and one for tomorrow...

Your real estate investments dashboard SmartCrowd

Why real estate?

Earn two types of return. One for today and one for tomorrow...

Your real estate investments dashboard SmartCrowd

Creates regular passive income

Many investors are attracted to real estate because of its simplicity as an investable asset class. Think about it, over 7.5 billion people call this planet home and all of them need a roof over their heads and a place to work. By owning a property, you are able to rent it out and start earning a secondary income right away. Compared to other assets, real estate provides regular dividends that investors can expect. In comparison, stocks may not always yield dividends and gold is usually held to negate the effects of inflation.

Increases your wealth

Investing in real estate, like many other investments is most beneficial when you have a long-term goal in mind. The wonderful thing about real estate is that it tends to increase in value over the long-term. At a later stage, your property may appreciate in value, thereby providing you greater returns when you choose to sell. Some academics investigated the return rate of various investable assets in 16 economies and found that residential real estate outperformed all other asset classes over a period of 145 years, returning an average of 7.05% a year.

Reduces risk and optimizes earnings

Adding direct real estate to your personal investments portfolio reduces your risk and may increase overall returns. This is because unlike other investment assets, direct real estate is not affected by the performance of other asset classes, such as bonds and stocks. Furthermore, even during periods where real estate may decrease in value, you still earn rental income.

Stocks/Bonds/Cash

Return:

8.11%

Standard Deviation:

10.92%

With 10% Direct Real Estate

Return:

8.22%

Standard Deviation:

10.22%

With 20% Direct Real Estate

Pie Chart of Returns from 20% Direct Real Estate

Return:

8.33%

Standard Deviation:

9.52%

Stocks

Bonds

Cash

Direct RE

You can think of standard deviation as the "volatility" in risk. A lower standard deviation means a lower risk profile

Assets by wealth percentile group in 2018: Q4

Real Estate

Consumer Durables

Corporate Equities & Mutual Fund Shares

Pension Entitlements

Private Businesses

Other Assets

Source: Survey of Consumer Finances and Financial Accounts of the United States

Real Estate

Consumer Durables

Corporate Equities & Mutual Fund Shares

Pension Entitlements

Private Businesses

Other Assets

Diversifies your personal investment portfolio

The reason rich individuals are able to accumulate wealth is primarily because of how they allocate their investments. The rich own a lot of the world’s real estate, however, when considering their personal investments collectively, real estate makes up a smaller share of their overall portfolio. Why? Simply because the rich are able to invest the amount they can afford to in real estate. SmartCrowd helps everyday individuals and families do just that – invest in amounts that are affordable so they too can grow their wealth like the rich.

SmartCrowd makes real estate investing easy

Smart Crowd allows you to start building a diversified portfolio to unlock your wealth potential. You are no longer required to have a significant capital or obtain financing. You can start today with AED 5,000
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