In order for the new home to be an ideal choice in the long term, we have always recommended carefully considering the LOCATION where you plan to buy it. However, in the current real estate market situation, we see that the RATE OF RETURN is as important as the location. Currently, you have to consider the property also through the eyes of an investor, looking forward to the next 10-15 years.

The yield shows how much annual profit you would get if you rented out the property at the best possible price. And this is essential in every case - both when you are considering investing your savings in real estate so that they are less affected by inflation, and also when you want to buy an apartment or a house for yourself. Here are some examples:

- If the property is bought with the help of a mortgage loan

If the property's annual rate of return is higher than the annual loan rate, it means that you will be able to rent out the property and cover the loan payment if necessary.

- If you consider real estate as a long-term investment of your savings

Against the background of high inflation, it is recommended to consider how to invest the accumulated money in order to preserve its value as much as possible. Crypto investors are incurring loss right now, but the deposit rate offered by banks is 0.2% per year and even lower. Therefore, investing in real estate is one of the ways to protect savings from the effects of inflation as much as possible. It is more profitable to rent a house at a rate of return of just 3.5%, but there are available properties even at a rate of 5% and 6% on the housing market.

At the end of 2022, in the real estate market, there is a high proportion of transactions that took place without loans – it is more than a quarter, or 28%. This indicates that people are in a hurry to invest their free funds.

To provide more information about properties, we use an illustrative Rate of Return Calculator for properties placed in the Latio database. The calculation takes into account not only the rent of the possible home, but also the occupancy of the real estate (it is assumed that there may be a change of tenants during the year and no rent is received during this time), savings for renovation works, insurance policy and real estate tax. The approximate rate of return can be found in the ad or by asking the Latio estate agent.

However, we recommend that you seek for specialized investment consultants in order to have a professional advice on investing free financial resources in a specific case.

We have collected some of the properties with the highest rate of return for your reference:

 Looking for another property with the highest yield? Contact us!