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Real estate investment in times of crisis

Investing

July 17, 2020

It's always a good time to invest in real estate.

Acquiring a property is a safe bet, since the money you invest far from decreasing increases, and even more if it is an area with a lot of tourism and constant growth.

However, it is normal that there is some uncertainty when we go through a time of crisis, since what we want is that our money is always safe. The good news is that investing in real estate in times of crisis is a good option for many reasons.

So in this article we will tell you those reasons why you should invest right now, in times of crisis by COVID-19.

Investing in times of crisis

If you have read our articles on investing in real estate, such as tips on how to invest in real estate and not die trying, then you know that this type of investment is a very safe way to see gains in the future, and you also have to know how to do it correctly.

But is it really a good idea to buy real estate in times of crisis?

At first it may seem very risky, but the truth couldn't be further from the truth. Because investing in real estate is much safer than other types of investments such as the stock market.

To understand this a bit more we first have to look at the bigger picture.

A perfect example of a crisis is what we are currently experiencing with the COVID-19 pandemic, which has caused unemployment in many aspects of our society.

COVID-19, or also called the coronavirus, has caused great uncertainty throughout the world. The main concern is for people's health and that is why many countries have taken appropriate measures to deal with the coronavirus pandemic.

This is not surprising, because health issues must be taken very seriously, especially when it comes to a pandemic.

However, in the business world there are also certain questions and concerns about it.

COVID-19 in a short time has caused the devaluation of several currencies, caused many businesses to drop their sales, and put many contingency plans in place.

In fact, there was a stock market crash just the day the World Health Organization (WHO) announced that COVID-19 had become a pandemic.

So it is not surprising that investors and businessmen are concerned about the losses this could cause them.

If we look back a few months, it is undeniable that our way of life has been modified to a lesser or greater extent by the coronavirus pandemic. Now more than ever you should play it safe when it comes to investment.

And as you can imagine, the safe bet is real estate investment.

Tablet with graphics.
Investing in real estate is a way to protect yourself from inflation in times of economic crisis.

But how is it different from other types of investments? What makes it so safe?

Let's look at the case of the stock market. Many expert economists have analyzed the situation and opinion is divided into two extremes: taking precautions and betting on cheap stocks.

In the latter case, it refers to the fact that we can find very cheap stocks and that it is a good opportunity to be able to buy them and then make a profit when the crisis is over.

The problem that this entails is that even if you buy shares at a low price nothing assures you that you will get your money back. In fact, if you don't analyze the situation of that company well, it may close down at some point and its shares may no longer be worth what you expected.

That is why to enter this field of stock market investment you need to have a lot of experience and knowledge. It takes a long time and it never really stops being a risk even if there is no crisis.

If you're looking to invest wisely, the answer is in real estate.

Why is that? Simple: because investing in real estate in times of crisis increases its value.

When there is inflation the price of many products increases, making many people have less purchasing power.

It's not the same to have a car that will inevitably devalue no matter how well you take care of it, as a house that increases in value the longer it's gone.

What if you are still going to buy the property? No problem, since many houses, lots and apartments maintain their prices, and in case they increase, they do so more slowly than consumer products.

In fact, many of the mortgage loans tend to lower their interest rates in situations like the ones we are experiencing, allowing you to buy at a much lower price than the original.

That's why it's time to invest now, since this way you will protect your money from the inflation that will be caused by the coronavirus crisis.

And in case you don't want to go live in the house you just bought, you have the option to rent it and get more immediate profits. If it is in a zone with a lot of tourism, like the Riviera Maya, it will be much better because you will be able to rent it according to the prices of a tourist zone.  

Considering all of the above we can see why investing in real estate in crisis is a good option. Not only will you protect your money, but you will have a beautiful house where you can live with your family, or if you prefer, you can rent it.

What you have to take into account

As mentioned in Why Invest in Real Estate, investing in real estate creates financial security, because in this way you protect your money from inflation; and that in fact, it is during inflation itself that real estate prices increase.

But good planning and research are necessary. That's why you must first take into account several things to succeed in buying real estate in times of crisis.

To begin with, you should consider what you want to invest in real estate for. Whether it's to protect your investment money, to move to a safe place, to rent, or to secure your retirement; there are many options you would want to buy real estate for.

Plastic houses.

Buying a property is an important decision, and therefore you should take into account both your needs and the opportunities that the market offers you.

If what you want is to rent the house, what you need is a zone with a lot of tourism, like the Riviera Maya. On the other hand, if you want to move, you may prefer a quieter place like Merida.

Actually, the Riviera Maya has many options depending on what your investment objective is. The point is that you should be clear about this objective so that you can look for what is best for you.

You should know that buying a property is not a short term investment, but a long term one. And that is why we say that you should invest as soon as possible, so that you can ensure the highest possible return on investment.

It is very important to be patient, because even if it takes some years you know it is a safe investment.

And are there ways to make a profit sooner?

Yes, there are. Going back to the example of wanting the property to rent, if you analyze the area and the level of tourism it has, you will most likely get those profits immediately. And in this way, almost without realizing it, you will have recovered your investment.

Another very important thing to take into account is the capital gain. The more growth you have in the area you want to invest in, the better.

A good example of areas with high capital gains are those that have a lot of tourism, or that have a lot of private investment. In the case of Playa del Carmen we have that it is a city that every year has more and more visits both international and national.

And what happens when an area becomes a focus of international tourism? The properties increase their value; so if you buy a lot or an apartment in Playa del Carmen you are ensuring that in a couple of years its value will be much higher, unlike other areas where there is almost no tourism and therefore there is less capital gain.

Banner of real estate developments in Playa del Carmen.

You should also take into account how accessible the property is and how many amenities it has.

Does it have access to entertainment areas? Does it have a beach nearby? Does it have private security? Can you go to the gym? You should ask yourself all these questions when choosing a house or apartment, especially if you and your family are going to enjoy it.

Finally, one of the most important aspects is choosing the right real estate company to deal with. What is best for you is that they have solid experience in the region, and that in addition to selling they are dedicated to building; this way you will know that your investment will be on the right track in times of crisis.

So if you really want to secure your investment we invite you to see our developments. In Anah we have 15 years of experience in the market; we know perfectly the paradise of the Riviera Maya, and thanks to that we can offer you a dream home with all the possible amenities.

So, if you take into account everything we have mentioned above, you will be able to invest in real estate successfully, even in times of the COVID-19 pandemic.

Where to make my next real estate investment

So you know that you can invest in real estate safely, that you should plan and analyze what you need. But where are the best options? Which cities have the most benefits?

As we mentioned, the best investment options are the areas with the highest capital gains, and currently the areas that are having the most growth are the areas of the Riviera Maya such as Playa del Carmen and Tulum, in addition to Merida which is very close by.

Starting with Playa del Carmen, we see that it has one of the areas with the most tourism in the entire Riviera Maya: The Fifth Avenue.

In Why invest in Playa del Carmen's Fifth Avenue? We talk about how famous this area has become, thanks to its nightlife, entertainment areas, and the artistic and cultural demonstrations you can find.

If you want to live in Playa del Carmen you must know that its lifestyle is cosmopolitan, and this is precisely due to the mix of cultures you find thanks to its tourism.

Besides, you will always have something to do since there are an infinite number of international, national and local restaurants. There are also bars, very bohemian cafés, souvenir and craft shops, and areas where art prevails.  

And of course, one of the main advantages is that the beach is very close to Fifth Avenue, so it's very easy to move from your depa to a restaurant and immediately after that spend the afternoon on the beach. Just like a dream life.

Playa del Carmen is the best city to never get bored.

Banner of real estate developments in the Riviera Maya.

However, you want to live in a place where you can be closer to nature, Tulum is your best option.

In Tulum you will be able to surround yourself with the so called Mayan Jungle, have access to some of the most beautiful beaches in the world, as well as be able to swim and dive in the cenotes, explore the Mayan ruins and live a whole experience visiting the Sian Ka'an reserve.

And the fact that you are close to nature does not mean that you are deprived of luxuries and amenities. Because if something doesn't go unnoticed in Tulum, comfort near the beaches will.

Finally, we know that Merida is also a good place to invest, as it is one of the safest cities in America and the world.

If you want to acquire a property in this city, we recommend you to invest in the north, one of the areas with the highest growth and great services.

In the north of Merida you can find the biggest, most beautiful and popular shopping malls of the city, and at the same time it is the safest area within a city that is already quite safe.

In short, the Riviera Maya is your best option for buying a home in times of crisis.

Secure your future by investing in real estate  

If you have read our blog before, you will know that we always remember that investing in real estate is a way to secure your future.

Living in an earthly paradise, having a home in one of the safest cities in the world, having a beautiful place to retire, securing your money from inflation, making long-term profits... the reasons to buy a property are many.

Anah knows perfectly well that this is the best time for you to invest, and that is why we are with you and guarantee the exchange rate at 20.50 Mexican pesos for a down payment.

Taking safe steps is very important when it comes to investment. That's why we suggest you analyze very well the current opportunities so you can buy a dream home and protect your money.

If you want to learn more about investing in difficult times, keep reading our guide: Where to invest my money in times of crisis?

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