As of 2018, investments in real estate began to show a favorable change, showing signs of stable progressive growth in the real estate sector in their behavior. In recent years, the forms of investment have changed, and the technological revolution in the market has brought several business models in which many people who want to invest their savings can do so with the possibility of obtaining benefits that are sometimes higher than those of traditional methods.
For foreign entrepreneurs, investing in real estate in Mexico brings economic and personal benefits that are related to the value of the dollar vs the value of the Mexican peso, the financial return that investing in the modern and accessible infrastructure of the country in certain areas entails. We introduce you 5 great reasons that will show why investing in real estate is the best option to withstand economic adversities.
1. Offers security for your future
In cases of economic emergency, buying a house, apartment or land is an action that will protect your future, since there are safe haven assets in the markets that rarely have price falls such as gold and real estate, the latter maintaining capital gains even in times of widespread stock market crashes.
Having one or more properties gives the security that, when you need it, you will have a roof over your head, a place where your family can rest without the worry of having to pay a monthly rent and a possible source of extra income. On the other hand, if you are an entrepreneur, in the future an investment in a property will benefit you, since you will be able to take full advantage of receiving a return on the investment you made in the short or medium term.
Since it will provide the flexibility to receive a profitable income or build businesses within the same property to continue increasing your capital and income capacity. A property is considered a financial guarantee that you can use when you want to retire.
2. The options to invest are varied and you get different results
Investing in real estate comes in a wide variety of options, ranging from residences to traditional houses or apartments, which allows you to diversify your money and reduce the risk of sudden changes in the economy. Each property has its own payment conditions, it can be made in different periods of time depending on the purchase circumstance and your economy. Investing in real estate will allow you to use your properties in an ingenious way.
3. There are adaptable financing plans
In times of economic adversity, central banks tend to lower the interest rates on mortgage loans to activate the economy and strengthen money flows, which allows property purchasers to close their purchase operations with lower interest rates. One of the great advantages of the real estate sector is that it is adaptable to the budget, this means that it has different financing plans in the short, medium or long term.
Each property has its own investment conditions in which you can decide the type of payment to be made, either by buying in pre-sale, using your savings, financing plans, real estate loans or making direct deals with the real estate company so that the process of investment is tailored to your pre-sale and how best it benefits you.
4. You have a return on investment
When we speak of Return on Investment we refer to the measure of time it will take you to recover a percentage of the investment you made, giving you the certainty that your purchase was a good decision.
To obtain this metric, several important factors influence such as capital gains, the flow of money generated by the property once acquired and its conditions. The capital gain is the increasing value over time of the acquired property, this factor can rise with the speed with which the environment affects it, this means that it depends on the area where it is located, the time and quality of the materials used for its construction, prices of nearby properties, commercial flow, maintenance and use.
You must bear in mind when acquiring a property that the property has a profitability that can be very useful, so keeping in mind that the price and value of the property are completely different concepts can help you choose, with greater certainty, your next investment.
The price for one part was the amount for which you obtained the property as opposed to the amount that your property is acquiring over time. This increase in the value of your property will allow you to obtain an increasingly attractive and useful return on investment.
5. You support the local economy
The real estate sector is the only asset that does not depreciate as mentioned in previous points, however, when acquiring a property, you support the local economy, since you not only benefit, but also benefit local businesses, workers or engineers who provided their services to build your new home, you support real estate companies that are committed to the local environment by carrying out reforestation for each home, building houses for each number of sales made, among others.
You generate jobs, since the subdivision or residence to be invested will need maintenance with which you can contribute to give jobs to the gardening staff, the janitor, cleaning staff, among others necessary for its proper execution.