Rising costs and inflation eat away at wealth

According to Statistics Denmark, inflation is at its highest in 30 years. If you have a fortune of DKK 1,000,000, an inflation of 4% will mean that you will lose DKK 335,000 of its value in 10 years. If you add 0.75% in negative interest to keep the money in the bank, the result is only even worse, namely DKK 385,000.

The trend right now is global, and although economists expect the level to fall again, the problem is that it eats away at savings and erodes the purchasing power of one's wealth.


Investing in assets that protect against inflation

At Carthage Capital, we are supporters of real estate investment. Inflation protection is one of our focus areas when investing, which is why we typically do projects with commercial real estate, preferably with longer leases.

Commercial leases are typically regulated once a year with the net price index, which tracks inflation through trends in consumer prices. Thus, the income in the property will follow up when there is rising inflation. As a bonus, there is often a minimum regulation, which is to say that the investment offers an even better return at an inflation level like what we have seen over the past several years.


Liquidity is important

We believe ongoing liquidity from Day 1 is important, especially with inflation evolving as it is now. If you invest in a property that has not been built yet, your return will typically be adversely affected by the rising prices of building, which may mean you will have to stay longer in the investment to get the desired return.

Therefore, we most often offer properties where there are already existing tenants and deposits from day one. This rental income reduces the debt in the property, meaning your investment can increase in value each month.

We receive many inquiries from investors who would like to know more about the possibilities of investing in properties with operations from day 1 and protection against inflation.

As an investor, you can participate in a real estate investment for an amount from DKK 750,000 and above.