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Guide: How to invest my money in times of crisis?

Investing

May 19, 2020

It is possible to invest in times of crisis and make a profit.

Today we live in a time of uncertainty due to the COVID-19 pandemic, which has changed our daily lives and caused the suspension of business activities.

It is not surprising that due to the current situation, many investors are wondering if it is a good idea to continue with their investment projects or if they need to take some time off.

In reality, economic crises create investment opportunities.

So what is there to consider for investment? What is the safest type of investment in times of economic crisis?

This is a guide with everything you need to know about investing your money in times of crisis, so that you can make your next successful investment.

Why invest in times of crisis?

The first thing you have to ask yourself is: Why should I invest my money in times of crisis?

Many people have the wrong idea that investing in times of economic crisis is not a good idea because it is very risky and you could lose your money or it could take a long time to obtain a return on investment.

If you already have some experience as an investor, you should already know that during crises you can take advantage of investment opportunities, such as protecting your money by investing in real estate, buying stocks at low prices, investing in businesses that are currently in high demand, among others.

Analyzing the market is the key to minimizing investment risk.
Analyzing the market is the key to minimizing investment risk.

What is certain is that all investments have a risk and that is why you should be cautious and choose to invest in the safest options.

Times of crisis due to COVID-19

And what's going on right now? Why is there a crisis?

The COVID-19 pandemic has brought about many changes in people's daily lives, businesses, investments and all areas in general.

The most important thing is people's health, and to avoid massive contagion, quarantine was declared in several countries.

Although such a measure was necessary, it caused the closure of companies and businesses, sending their employees home and affecting their income and shares.

Some sectors have been more affected than others.

Those least affected are all businesses that offer their products or services online, those that can operate remotely, and those that provide basic needs.

Tips for investing your money in times of crisis

If you are already determined to make your money grow, then we suggest you take note of the following tips to plan your next investment and make the most of it.

1. Try to become better-informed

The main thing is to be aware of the current situation.

It is not only a matter of finding out about the infections, but also of analyzing the impact of the coronavirus on the global economy and the sectors that are benefiting from it, as well as those affected by it.

Laptop with news.
Being informed is always essential before making investments.

This way you will know if it is safe to buy shares in a company, or if you should use the money for another purpose.

At the moment, the businesses that benefit most are those of online courses, software, marketing, basic necessities, e-commerce, technology, etc.

2. Diversify your investments

One of the mistakes of first-time investors is to focus on one type of investment, missing out on all other opportunities.

Diversifying your investments is advice that works both on normal days and in times of crisis.

This way, you decrease your risk because if a business goes wrong, you will be able to deal with the losses thanks to the profits from your other investments.

You can buy real estate while buying stocks, investing in new businesses, and saving for retirement.

3. Invest in real estate

Investing in real estate in times of crisis is the surest way to protect your money from inflation.

A property does not decrease in value, but rather the value of the property increases over time.

Barlovento Residencial.
Regardless of whether you buy a house to live in or a rental home, make sure it has all the amenities.

To ensure that you will have a return on your investment, you must buy a house or condo in an area that is well developed and has a positive growth projection,

4. Don't invest all your money in stocks

As mentioned earlier, investing in only one thing can be detrimental and therefore it is better to diversify your investments.

Buying stocks is one of the most risky investments, so that same risk increases with the current situation.

Although it may bring you great benefits, investing in stocks alone can cause you to lose considerable amounts of money.

5. Invest in Gold

Another of the safest investments besides real estate is gold, since it is one of the precious metals that most conserves its value regardless of the economic situation.

Investing in silver and copper can also be beneficial, only to a lesser extent, and with a little more risk.

Gold.
In fact, many of the world's richest people have used gold to protect their money in times of crisis.

6. Keep expenses in check

In times of crisis it is a good idea to invest, but not to overspend.

As you know, investment is something that generates profits in the short, medium or long term; while spending is just an outflow of money.

The best thing is that you divide very well the amount of money you are going to spend for investments, and the one you are going to use for various expenses. This way you will have more control over your personal finances.

7. Keep saving

In addition to dividing your money into investment and expenses, it is also advisable to leave about 10% of your money for savings.

You should not leave your savings aside just because you are going to use more money in your investments, since such savings should always be a constant.

Money for savings.
Saving is a way to get an emergency fund but also will serve you when want to retire or start a new business.

8. Take advantage of discounts and promotions

In times of crisis it is common to find discounts and promotions, since many companies apply strategies of this type to be able to motivate the purchase.

If you are looking to invest in the real estate sector, it is advisable to look for real estate agencies that apply some kind of profit on the down payment, or that respect the exchange rate, etc.

9. Look for low risk investments

They say that "he who does not risk does not win", but you also risk losing a lot.

That's why it's best to only invest in businesses that you know are unlikely to fail, such as digital companies, or those that sell commodities.

Or - as mentioned earlier - investing your money in gold or real estate that you know will not be devalued even if there is inflation.

The stock market.
Investing in the stock market is one of the highest risk investments, so it's best to avoid it if you're looking for security.

10. Invest in your professional growth

This is a type of investment that will generate profits a little more indirectly than the previous ones, but that doesn't mean it shouldn't be important.

Investing in your personal growth allows you to prepare yourself for new job opportunities or businesses you might undertake.

Today, most of the companies that prosper are the ones that can continue to work online. So if you don't already know about the latest digital trends, now is the time to do so.

There are many online courses and careers you can take that don't take up much of your day.

Real estate is the safe bet

After reviewing all of the above investment advice, you've probably already realized that the two safest options are investing in gold and investing in real estate.

However, investing in real estate not only protects your money but also provides you with a home that you can live in or rent out, generating extra income.

Bahia Principe.
The versatility of real estate makes it the best option for savvy investors.

And what makes it different from investing in the stock market?

Buying shares at very low prices may sound tempting, but if you decide to invest in shares you should be very careful and study in detail the situation of the company you are buying from.

Because, just as you are likely to see many profits, it is also likely that the company will not recover from the crisis and declare bankruptcy, causing you to lose all your investment.

This way you can realize that real estate investment remains the best option independently even when there is a crisis in the world economy.

Tips for buying a house in times of crisis

When buying a house or apartment you have to take into account several things so that you can get the maximum benefit from your investment.

  1. To begin with, it is best to choose a place that has a lot of added value, since this way you can ensure that it will increase in value over the years. The tourist areas are the best option, although now there is not much tourism when the crisis ends there will be a great increase.
  2. Buy with an experienced real estate agency that knows the place and offers you houses and apartments with all the amenities.
  3. Look for a real estate agency that assures you the change of currency in the down payment. That way you won't have to worry about the currency drop.
  4. Buy in pre-sale, because this way you will have the opportunity to acquire the property at a very low price, and you will have enough time for the crisis to pass and you will obtain the benefits of the capital gain.
  5. Seek advice online with the real estate agency of your choice. Most of them answer in a short time and can clarify many of the doubts you have, in addition to giving you information about the procedures you have to do.

Where to buy?

Now that you know that investing in real estate is the best option and that you know what you have to take into account, you have to ask yourself what place you should choose to buy your property.

Recently, the World Travel and Tourism Council (WTTC) considered the Riviera Maya as the main tourist destination in Latin America in the #TogetherInTravel campaign.

Travel is currently on hold, but it won't stay that way all the time. As soon as the crisis passes, many of the places that were already important tourist spots will increase their visits.

This allows the development of the city, increasing the value of many of its houses and apartments. And thanks to that the Riviera Maya becomes one of the best places to invest in Mexico.

Within the Riviera Maya there are two places where you can invest in real estate and get the maximum benefit: Tulum and Playa del Carmen.

Tulum, Quintana Roo is one of those places where you can connect with nature, do activities that connect you on a spiritual level, and at the same time where you have all the amenities you need.

This beach town allows you to get closer to the history of one of the most interesting ancient cultures in Mexico: the Mayan culture.

All these attributes make it one of the most popular tourist destinations, and therefore, one of the places where you will have a return on investment.

Playa del Carmen is another safe bet, but it has a different kind of focus, since this city stands out for its cosmopolitan atmosphere, where its main attractions are Fifth Avenue and the beach.

Besides that, it is a city that has a lot of entertainment places, so if you decide to buy an apartment to rent you will always have someone who wants to live there.

However, a city that does not belong to the Riviera Maya and that is also a safe bet is Merida; thanks to the fact that it is considered one of the safest places in all America.

Take care of your money

Just because there's an economic crisis doesn't mean you have to stop investing.

Today there are many good options to increase your income without having to take so much risk. You just have to study the market very well, be informed and act intelligently.

Keeping your money safe is important to you and your family, and the best way to do that is by taking safe steps with your real estate investment.

Invertir en Riviera EN

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