Saving is very important; However, only by investing can you multiply your money. Investing in real estate is an excellent option to ensure a more stable financial future, since the real estate sector has historically been recognized as a highly profitable option in the short and long term.
What is an investment?
An investment is the process of acquiring assets and ensuring that they increase in value over time, the gain or benefit comes from the difference in the purchase price minus the sale price. Investing in real estate is a sound investment.
Benefits of a profitable real estate investment in real estate:
* Asset security. Real estate has the advantage of being a tangible asset that gives the investor the security of an increase in value in the short and long term, compared to the asset of shares on the stock market. The real estate sector represents a safe and intelligent investment, representing a pillar of the Mexican economy. Investors receive high returns that are generated through different channels and ways of commercial exploitation of real estate. In the Riviera Maya, the use of real estate for vacation rentals, Airbnb, condo-hotel, among others, is increasing due to the high profits generated by taking advantage of the influx of tourists in the area.
* Goodwill. This can be defined as the increase in the value of a property over time, as well as the perception of its value taking into consideration the location, finishes, amenities, urban environment, among others. In general, all properties increase in value since their construction, but there are some factors that increase their value exponentially. Supply and demand also play an important role in increasing the value of a property. In the particular case of the Riviera Maya, there is a high demand for the purchase and sale of real estate, a fact that favors the permanent increase in prices and, consequently, in the profit over the initial amount of the investment. According to the Federal Mortgage Society (SHF), the state of Quintana Roo occupied the first place in the increase in housing prices nationwide in 2021 with 12.1% in its annual variation compared to 2020 and that same position was maintained in 2022.
* Return on investment (ROI). It is a metric used to know how much the company earned through its investments, for its calculation it is necessary to raise the total income, subtract the costs from these and, finally, divide that result by the total costs. ROI on real estate can be calculated with the following formula: Profit – Investment / Total Cost of Ownership.
ROI Sources/Real Estate Investment. Some types of investments have a single source of return, however, real estate have three sources that generate economic benefits, being the following:
- Net gain that comes from the appreciation of the property over time.
- Net cash flow resulting from the difference between rental income and expenses associated with property maintenance.
- Amortization resulting from the reduction of the debt, although it only applies in those cases where a loan is requested to acquire the property.
How to increase the ROI of a real estate investment?
- Reduce fixed expenses. Analyzing those that we can control and looking for the cheapest options.
- Increase in income. Whether for sale or rent, we can carry out a small reform and analyze the market to determine a possible price increase.
The real estate sector in the Riviera Maya has continued to rise, mainly due to the tourism sector, only in the last four months, according to data from the State Secretary of Tourism, an increase of 18.6% was registered compared to that corresponding to 2022, with a total of 7 million of tourists from January-April 2023. Source: https://www.poresto.net/quintana-roo/2023/6/25/mas-de-millones-de-turistas-visitan-quintana-roo-durante -the-first-semester-sedetur-389476.html
Given this supply and demand scenario, real estate investment becomes a low-risk, high-return operation. It is one of the most popular holiday destinations in the world, as shown by the aforementioned figures. INVEST in Wyndham Grand, Mayakaan Residences Riviera Maya. Today’s investment that will make you enjoy in the future.