17 de julio, 2020
Uncertainty is a completely normal reaction to trying times, however, as a smart investor, you need to think with a cold head in order to see the opportunities when others are seeing chaos. To quote financial magnet Robert Kiyosaki, when everybody sells, you buy. When everybody buys, you sell.” That’s what we hope you get out of this blog.
Even in these uncertain times, you have several options to invest and one of the safest bets continues to be in real estate. One way to see this type of investment is to look at it as you would a bank, with its precise advantages. For one, you turn your Mexican peso into dollars, meaning you’re not tied to inflation. Second, if you were to leave your money in the bank waiting for interest rates to spice up your money, you might receive a 6, 7, or 8%. In real estate, this interest rate is called capital gain and it can generate up to 10-25% in normal conditions. During a contingency, you can duplicate the percentages to 20 to even 40% on some occasions. In addition to that, consider that you will have a return of investment once you rent out your property.
Like any other investment and financial venture, real estate does require certain expertise in matters such as legal terms, market, projections, demand and offer, zones, and knowledge of the market. But don’t fret, a smart investor knows that he does not need to know everything. All he needs to know is where to find the right experts. Look for experts, especially a solid company with a long history of success and one who you know will have your back.
Not all opportunities are made equal. Yes, the global pandemic and the economic halts have opened up the doors of real estate to demographics who couldn’t afford to enter the game before. However, many developers and smaller companies new to the sector, struggling to survive amidst the pandemic, have drastically slashed the prices on their units. But don’t be deceived. You have to look at the whole spectrum. While you may find properties at a fantastic price, you still have to look at the location and the market. We won’t always be in this situation and you don’t want to look back and ask yourself why you didn’t invest in premium locations. Regret is not a feeling you want to be associated with your real estate investment.
When you think of real estate investment, you might think about real estate agents around your community, you might think about your home and homes around your area. But as you know, location-location-location is a key factor in any smart investment. So why should you consider going south of the border to invest? Real estate in Mexico is an opportunity to protect your money during a recession, among other things. During the great recession of 2008, while US properties lost 52% of their value, in Mexico, property value went up! Mexico is a developing country whose growth is a promise to investors.
Now that you know it’s the perfect time to invest, it’s time to look at locations and trends. So
where should you go? One of the up and coming locations for tourism and for investment is the
Riviera Maya. According to Forbes, the Riviera Maya and in particular Tulum has been
classified as one of the 10 most visited destinations in the world. Not only is this location
naturally beautiful, but it is also a definite green light to look at your real estate investment in
terms of vacation rentals. In addition, COVID-19 has left us many lessons including having a
home that best fits our lifestyle and the quality of life we want. And you’re not the only one who
learned the lesson.