Investing in diamonds or bricks?

The profitability of real estate depends on different factors, such as the initial purchase price, the rental price, renovation costs, etc. Analysts indicate that one can expect an average profit of 3% per year. That sounds like music to one’s ears, because this is a lot higher than what can be earned from a savings account. Furthermore, it’s a more stable profit than shares for example, where the rates are sometimes unpredictable.

Diamonds have an intrinsic and durable capacity to increase in value. Different studies analysts indicate that diamond prices will structurally increase the coming decades.

Houses, apartments, garages, studios… it’s all tangible and real. You see what you are investing in. For investors who value security, real estate is therefore much more interesting than shares or bonds that are “virtually” in an investment portfolio. The same goes for investing in diamond. You do not get papers that represent the diamond, but you get the diamond itself in your possession.

If you can and are willing to take matters into your own hands, you can contribute to the increase in value of your property. A townhouse that needs renovation can often be bought at an interesting price. If you do the renovation yourself, you increase the value of your investment by yourself. Loose diamonds can also increase in value, by having them set jewellery. Old family jewels for example, could get a makeover, which also implies an increase in value.

No matter how you look at it, to be able to invest in real estate, you need a large sum of money. Even for the smallest house, you need to pay a minimum of 150.000 euro. On top of that there is a whole bunch of other costs: notary fees, registration fees… You can invest in diamond for a much lower amount. The needed starting capital is much lower than when you invest in real estate.

Investing in diamond has many advantages. It is simple, they offer guaranteed profit, they are tangible and you have the possibility to increase their value yourself. Furthermore, you can start with a small amount. The experts of BNT Diamonds will give you information based on your personal preferences.