Real Estate is by and large the safest form of investment because over time the value of your property is bound to grow.
Even in real estate, if you own apartments, they are safer and much more stable than commercial properties primarily because of three reasons:
- They are less dependent on business cycles for occupancy than any other types of real estate investments. It doesn’t matter if interest rates and home prices are high or low, apartments are generally more affordable.
- Apartments have shorter leases; thereby offering greater protection from inflation than the long-term leases associated with other properties. That is, rents can be negotiated more frequently.
- The pool of tenants is much greater for apartments than other types of properties. This ensures a more consistent occupancy than industrial and commercial properties, which usually have only a few tenants to choose from.
