Investments in real estate have serious disadvantages:

low income: the range of rates of 4-8% per annum does not change for several years;
real estate is illiquid. This means that it will be difficult to sell it quickly at a good price;
there is a risk to meet unscrupulous tenants;
the cost of utilities and property tax increases. From 2015 to 2020, the tax rate could rise to 0.3%.

Bonds as an alternative

Bonds have similar and even higher yields than real estate. In addition, they are much less risky. The essence of bonds is the obligation of the issuer (company or state, these bonds issued) to pay the holder a fixed income – coupon, and at the end of the term – to return the invested capital. Bonds are reliable and enjoy consistently high demand among investors all over the world.

Unlike bank deposits, income on bonds cannot be capitalized, and the capital invested in bonds is not protected by the Deposit Insurance Agency. However, bonds are highly liquid due to the fact that there are no serious restrictions on their purchase and sale on stock markets.

Bonds are a worthy alternative to real estate and an excellent investment tool for achieving medium- and long-term financial goals. Ask your personal financial advisor which bonds of which countries and companies are worth investing in.