Buying real estate is one of the safest investment options

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Buying real estate is one of the safest investment options
Reading time: 6 minutes
Published: 10th February 2021, 2:02pm
Updated: 19th March 2021, 6:22pm

Real estate investments are a safe option as they offer lower risk, higher returns and enable you to have a broad investment portfolio

Many investors still place their money on stocks. Although these are still a well-known investment option, not everyone knows that a real estate investment is also considered a good investment option, as you’re purchasing physical assets.

The first step to any investment is to plan out a strategy that fits your budget and needs. Whether it’s for your retirement, saving for your kids’ college, or to have another source of income, we advise you to have a plan.

Investments in real estate are a good choice as they offer lower risk, higher returns and allow you to have a broad investments’ portfolio, i.e., you have plenty of choices to invest on. When you buy real estate, you possess actual land or property in contrast to when you buy stocks, where you’re only purchasing a small part of a business or company. Most real estate owners make money by renting out the property and through appreciation (which can also turn into a source of steady income), as the property value goes up. 


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Pros of investing in real estate

It is true that buying a property requires you to save a little more than if you were investing in the stock market. Nonetheless, when purchasing a property, investors have more leverage over their capital, enabling them to manage it better, and also purchase a more valuable investment asset.

Sense of security

With uncertainties all around the world, people are seeking for some sense of security. While tangible assets might not yield immediate returns, the truth is that they are still less volatile during tough economic times, such as right now during a global crisis caused by the pandemic. 

It is important to mention that the number of owners picking up alternatives, like property acquisition through the €350k Golden Visa programme, or venture capital has also substantially increased over the last years.

It is a stable investment

Prospective buyers find real estate investments appealing as they have something to be accountable for; besides being a diversified investment option, they are also a tangible asset that can be managed.

In an interview held by CNBC, millionaires who invest in real estate, state that investing in real estate allows you to protect yourself and your wealth.

Although the real estate market goes up and down depending on demand and supply, as well as political and governmental factors, it has never actually deteriorated or declined over time. This ensures that if you choose to buy a property with inherent value in a premium area, such as central Lisbon, for instance, you will still get good value and yield from your real estate investment.


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It enables you to generate positive cash flow and turn it into a passive income

As mentioned above, investing in real estate allows you to rent out the property you purchased. If you can get enough rent to cover your expenses you are effectively getting the tenant to buy the property for you. 

When you put down the deposit, the people renting the property pay for the mortgage and the expenses. Savvy investors know that this will generate some money, practice known as generating positive cash flow and eventually passive income; and as you pay off your mortgage, over time, you gain even more positive cash flow.

With enough time and a broad investment portfolio, you will be able to secure a positive cash flow and can eventually fund your lifestyle through this source of income. 


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Portugal’s capital, Lisbon, is brimming with foreign investment. Having been considered Europe’s hottest real estate market, more and more foreigners are wanting to flock into the country for a quality lifestyle and very attractive tax and citizenship benefits.

Despite facing turbulent times, our teams at Portugal Homes are still working, closing clients and showing and selling property using every digital touchpoint to help our avid investors, as well as bringing liquidity to many developers and private vendors in Portugal’s core cities.

If you’re interested in investing in the Portuguese Real Estate Market, get in touch with us and dive into our wide range of investment properties here!

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Buying Property in Portugal

Portugal Homes has very experienced and knowledgeable professionals working with some of the most established and reputable developers Portugal has to offer. Our vast experience allows us to guide you through the best investment choices.

Whether you want a holiday home or an investment property, we select the best units for your profile and take care of all the process from start to finish. Even after the sale! Our After Sales services assume the responsibility of furnishing your property at your taste, taking care of the property in your absence, managing the rentals if you wish to rent your property when you’re not in Portugal and so much more!

To learn more about the Portuguese Non-Habitual Resident Program and our After Sales services, please fill the form below.

My property advisor, Mathew McGurn, was truly excellent! His knowledge, professionalism and attention to details was much appreciated. He worked hard to not only find a property that fit all my requirements, he negotiated successfully with agents making sure my offer won over other buyers bidding for the same property. In addition, his communication skills, prompt response time and general help with my getting settled in Portugal went above and beyond the normal.

Investor from the USA

Dear Sérgio, thank you so much for arranging our 1º Esquerdo place. We love our place, and your attention to detail is very much appreciated. 

Tim Thronson - Investor from the USA

A full service, one stop opportunity. Very easy for us a foreigners. Ryan Dunn went above and beyond for us. We appreciate him and his work!

Jose Arias - Investor from the USA

Everyone I met with and spoke with has been extremely knowledgeable and professional. Dealing with native English speakers who understand things from my perspective was very reassuring. Finally, knowing that I had Matthew in my corner gave me the confidence to proceed with the process of buying an apartment in Lisbon. Thanks very much.

Investor from the USA

So far it has been great. Simon is very knowledgeable and friendly.

Loay El Abiad - Investor from Saudi Arabia

It's fantastic how Ryan had complete knowledge regarding Lisbon and dealt with us in a great manner.

Akbar Ali - Investor from Pakistan