6 advantages of investing in real estate in Mexico
Actualizado: hace 5 días
1. Offers security and flexibility in the future
Buying a house, apartment or land is an action that will protect your future and your finances in the event of an economic or personal emergency.
In case of being the head of the family, for example, having one or more properties will give you the certainty that, when you need it, you will have a roof over your head, a possible source of extra income, and a place where your family can rest. without the worry of having to pay a monthly rent.
On the other hand, if you are an entrepreneur, in the future investment in real estate will benefit you since these will give you the opportunity to build a network of properties that could serve as collateral for your business, and that, in the end, you can take full advantage of by receiving back part of the investment you made in the short or medium term.
In addition, investing in real estate will give you the flexibility to build more businesses within the same properties and continue to increase your capital and earning capacity. Finally, thinking long term, a property is considered a financial guarantee that you can use when you want to retire. 2. The return on investment rises
When you invest in real estate with a commercial purpose, you should know that your property has profitability that can be very useful. The return on investment is calculated depending on the conditions of purchase, the capital gain, and the flow of money that the property obtains after being acquired.
This measure refers specifically to the time in which it will take you to recover a percentage of the investment you made and, generally, it gives you the certainty that your purchase was a good decision.
You can calculate this metric yourself by dividing the property's down payment by the monthly net income, which can be generated from the commercial use you give the property.
A very important factor when investing in real estate in Mexico is capital gains, that is, the increasing value that the property you bought acquires over time. This is determined depending on different factors such as the area where the property is located, the commercial and pedestrian flow, the prices of nearby properties, the time and quality of the materials, as well as the maintenance and use that you give it.
You must take into account that the price and value of a property are different concepts. You could have purchased a property for a price, however, its value may be different from what was initially established and increase over time.
This increase in the final value of the property will allow you to obtain an increasingly attractive and useful return on investment to take advantage of your other investments. 3. You support the local economy and stability
By buying a house you not only benefit yourself or the financial institution that supported you to acquire it.
Whether it's a new or used home, properties are always in need of repairs or improvements that can be provided by local businesses or independent individuals who lend their knowledge to make your future home more welcoming and safe.
The real estate industry also includes all those providers of home services in a local space; from architects, bricklayers, blacksmiths, locksmiths, carpenters; Therefore, the moment you buy a house, you put that service gear to work and this encourages the economy of your city, generating jobs and opportunities that you can also take advantage of in your favor.
Investing in real estate also helps to improve residential areas by creating communities of people who live in the same area and are responsible for the maintenance of spaces and properties. For example, if you invest in a property in addition to your own and decide to rent it, in addition to receiving a monetary benefit, you help others to have a decent home in which to live.
The social fabric is repaired when a group of people, who may be close or distant neighbors, come together to request improvements in their surroundings, remain alert, and report cases of insecurity or organize themselves to create commissions that meet the needs of all inhabitants of the place. 4. The investment options are varied and with different results
Investing in real estate doesn't necessarily mean just buying a home with a mortgage loan. The properties that you can buy range from houses of all sizes, traditional apartments, apartments in buildings, properties in housing developments, land for construction, commercial premises, buildings, apartments in buildings, among others.
This wide variety of investment options allows you to diversify your money and reduce the risk of losses due to fraud and sudden changes in the economy.
Likewise, each property has its own investment conditions, so you can make payments in different periods of time depending on the purchase circumstance and your economy. For example, through real estate loans, using your savings, paying cash, or making deals with financial institutions so that the investment process is tailored to you and in the best way that it benefits you.
In terms of results, having a wide variety of real estate investments will allow you to use your properties in creative ways. Whether you rent them, use them, occupy them for your own benefit, use them as commercial premises, or do not want to give them immediate use, all the options that are generated from your decision will be only for your benefit and that of your beloved.
5. You can invest in the way and with the speed that suits you best
The payments of a mortgage loan generally last, depending on your salary, savings, points, or quoted semesters, between 15 to 30 years.
However, this is not a general rule of thumb for everyone who wants to invest in real estate. There are many options so that you can adapt your monthly payments to your living conditions and ability to cover the debt.
Government agencies, for example, are in charge of designing and having support for those who feel they cannot yet invest in real estate for personal or commercial use.
From personalized installments, variations in down payment rates, and adjustments in payment times, to prepayment options that sometimes carry fines or extra charges, but that are useful if you have the solvency to end the debt so quickly as you wish.
It is important to have significant savings to give a down payment, to be able to verify constant income and correctly organize your finances, these are factors that will help you to be able to cover the debt of your investment in real estate without undoing your current economy and without bringing monetary problems in the future.
6. You keep your money active
There is nothing worse than having money and spending it little by little on short-term pleasures. If you keep the income you receive weekly, monthly, or annually static, it is a guarantee that you will lose it in situations that seem necessary or urgent and you will lose the opportunity to invest in real estate in a timely manner.
While it is true that the real estate market is on the rise and the sales of houses and apartments are more common, the prices of real estate increase in the country at a percentage that is better to take advantage of when it is at its lowest point.
According to the 2019 House Price Index, in the first quarter of this year alone, the price of properties acquired with a mortgage loan increased 9 percent compared to last year. This means that, on average, the price of houses in this period amounted to 1 million 71 thousand 235 pesos, and the median price was 617 thousand 755 pesos.
As mentioned above, capital gains and the context in which a property is located make investing in real estate in Mexico an activity that pays financially and, as an added value, is part of your personal wealth.
Planning is an important key to having stable personal finances. It is better to take advantage of your income in a real estate investment that will bring you many benefits in the future than to leave the money under the vulnerable mattress at all times.
Investments in real estate will make you benefit from passive income, that is, those for which you will have to make a minimum effort to obtain and which are also received on a regular basis.
Real estate provides tangible and adaptable benefits that you can use to your advantage in many ways. You can inherit them to your relatives, remodel and rebuild to maintain their profitability, and gain the opportunity to continue investing and increasing your assets.
Source: El Financiero