You opened a savings account, and little by little, your money grew with the interest. However, nowadays, the reality is very different. With the low returns of low-risk financial products and high bank fees, many people are starting to consider hiding their money under the mattress.
In fact, it seems we’re not far from the day when we’ll have to pay banks just to keep our money safe. How things have changed, right?
Make Your Money Work for You
We live in a cycle we barely notice: we work to achieve financial stability, and once we reach it, we often get into debt buying things we think we need—a new car, vacations, or other luxuries. The result? More debt that forces us to work even harder.
Years later, we look back and realize we’ve spent our prime years struggling to stay afloat, hoping for a pension that barely allows us to survive.
This is what Robert Kiyosaki describes as the “rat race” in his book Rich Dad, Poor Dad: spending your life chasing money and suffering both to earn it and to keep it.
But Kiyosaki offers a different perspective: make your money work for you instead of you working for your money.
The Importance of Financial Education
So, why isn’t everyone doing this? According to Kiyosaki, the answer is simple: a lack of financial education. From a young age, we’re taught that the only way to earn money is to work harder, so we don’t even consider alternatives.
To make our money work for us, we need to move away from the idea of “saving in a bank account” and start thinking about investing wisely.
Is Investing in Real Estate a Good Idea?
Investing in real estate is one of the safest and most profitable ways to put your savings to work. Unlike high-risk financial products, real estate allows you to protect your capital with lower exposure to losses—ideal for small savers who want to avoid unnecessary risks.
And the best part? You don’t need to be a millionaire to get started. With initial savings of €20,000 or €25,000, you can make the down payment on a property and finance the rest with a mortgage. Thanks to the current low interest rates, this approach is accessible to many people who have never considered real estate investment before.
Take Advantage of Current Interest Rates
Today, fixed mortgage interest rates are around 2.60% APR, according to the best market offers. This creates an excellent opportunity to maximize the profitability of a real estate investment.
And how can you make your investment even more profitable? It’s simple: rent out the property.
The monthly rental income can cover your mortgage payment, property tax (IBI), and other expenses. In many cases, you’ll even generate additional income. After a few years, you’ll own a fully paid-off property that has provided you with monthly returns and increased significantly in value.
3 Reasons to Invest in Real Estate
1. Profitability: It’s more profitable than letting your money sit idle in a bank.
2. Security: It’s less risky than the most volatile financial products.
3. Liquidity: You can access your money whenever you need it, unlike a pension plan.
Is Real Estate Investment Right for You?
It’s normal to think that real estate investment might not suit your situation. However, there’s an option for every profile and savings level.
At Montalvo Real Estate Group, we’re here to advise you and help you find the perfect property to make the most of your savings. Shall we talk?