Have you ever wondered why when we talk about investing in real estate we always use the phrase "secure your future"?
Of course at first glance, we can understand that real estate investment is a safer way to make our money grow and one of the easiest if we take into account that we do not all know how the stock market works.
Besides, acquiring a property, even when you do not intend to inhabit it, may be better than leaving your money saved in the bank, especially if you acquire a property that is located in an area whose surplus value is increasing.
However, investing in real estate may sound a bit scary and especially when we have no experience in the area: legal procedures, long payment deadlines, even the fear of not wanting to be tied to a place where we do not know if eventually we are going to stay.
This happens a lot to millennials. In what is the best age to invest in real estate? We talk about this topic. The orange economy, that is, the creative economy, makes more and more jobs informal and varied, while millennials prefer experiences more than acquiring objects, the reality is that they are one of the generations that should be most concerned about creating an investment portfolio and start thinking about the future.
There are many conditions that do not favor millennials and their future. For example, economic and environmental conditions; it is believed that unlike generations like baby boomers - and even generation X - millennials could only retire until they were 75 years old.
In the same way, the conditions of retirement and education do not favor them. Although it could be considered one of the generations with major technological developments and with greater access to education, many millennials struggle to pay their school debts and their income.
And not only millennials, but more and more people are also starting to worry about increasing their money before retirement thanks to the changes and restructuring of pension plans or the lack thereof.
Faced with such a bleak vision, it is normal to think that investing in real estate is impossible, even though this could be one of the best ways to guarantee our future.
Although uncertainty surrounds us, it is the millennials - who are between 35 and 23 years old - and the centennials who are increasingly worried about how to start investing, from now on.
Unlike previous generations who began saving and investing for retirement between their 30 and 35 years, it is believed that millennials begin to save within their 20's and are the ones who They are more interested in finding more beneficial solutions for their future than simply saving money as the previous generation did, they saved money only by considering their salary.
It is very likely that when we think of investing in 2019, technology and applications come to mind. The stock market and the shares, which for many years have been the epitome of what we consider to be "good investment" have shown that they are not always very safe options and that profits can quickly turn into losses.
Also, talking about risks and probabilities means that people end up fearing about these issues or trusting people who do not advise them correctly and risk their money or savings, aggravating their situation and ending up being victims of fraud and scams.
That is why many millennials, although still interested in investing in issues that involve technology and those causes that help create a better world (such as renewable energy and the environment), increasingly begin to look at more "traditional" options such as real estate.
Of course, investing in real estate has long been one of the safest and most profitable strategies for investors. But for some millennials, investing in real estate may not seem like an investment, especially because of the long waiting time that could increase the capital gain- and their money.
Also, as you should know, the collective imaginary of investing in real estate for many is synonymous with buying a house or doing it through government institutions, when there are more options -such as lots and even crowdfundings- for those who are looking for Start investing in this industry.
In 10 tips to invest in real estate and not die in the attempt we had mentioned before, to invest in real estate you need to be very patient.
The capital gain of your property increases over time, and as we have already explained, seeing beyond what is happening in the now can give you the key to obtain a greater profit with a small investment.
Think about residential or industrial lots.
The lots are excellent acquisitions for those who are thinking about investing but do not know where to start. Especially if they are in areas where there are opportunities for growth.
Imagine that you acquire a lot near a school or a shopping plaza. It is highly probable that someone would think of putting a business near those areas to capture the attention and the flow of those who come to these places.
It is not necessary to build in your lot, since later you can resell it, obviously at a higher price than what you had originally purchased since it will be considered the new value of the capital gain in the area.
That is why many first-time investors see lots as an option to invest in real estate since they are more accessible than buying a house. On the other hand, construction and real estate companies have maintenance services, so you do not even have to worry about taking care of your lot.
Through a fee, you are able to ensure that your investment is being - literally - watched.
Especially if, like many other people, you decide to invest in cities where the cost of real estate is lower.
At this point, you must know that Mexico is one of the most profitable places for foreigners, especially those areas where tourism has allowed apartment rental to become a stable and feasible income.
Cities like Mérida are attracting the attention of those Mexicans who see the potential and quality of life that the city of peace offers, and they have become one of the best places to invest in Mexico. So they decide to acquire real estate developments in Mérida, since doing it in places like Monterrey or CDMX would be almost impossible for them because of the excessive price.
With this, they are not only acquiring a patrimony but also they are guaranteeing that their investment is maximized, especially if they acquire these properties in presale. In the end, they are managing to earn more for less investment, especially when you consider the development plans that the city and its public policies have. For example. Did you know that Yucatán is one of the pioneer states in banning the use of plastic?
Saving is one of the ways in which workers try to prepare for retirement. With the likelihood that this is no longer an option for millennials - and even for some of Generation X -, saving has become the hope in the face of uncertainty.
However, we do not know how to save money. For example, there are those who believe that having their piggy at home is safer than doing it at the bank. Distrust of these institutions causes many to consider saving their money without the possibility of making it grow.
On the other hand, those who decide to take their savings to the bank are also not likely to see it grow. At least not as we would like.
We must also consider inflation, which can cause prices to increase and the value of money to decrease - thinking in its most negative sense, of course. So the fear of what you save money today may seem like nothing tomorrow is a reality. It only takes to go to the store to see how the prices of the products have risen gradually. It was not the same to go with 10 pesos to the small shop about 15 years ago to go today, right?
Unlike keeping it in a bank - or under your bed - investing in real estate allows you to protect your money, even in times of crisis.
To begin with, investing in real estate can be seen as a kind of insurance against inflation, especially when we consider that inflation is when real estate prices increase during this period. In addition, we must consider that fixed mortgages keep the same rate, so even when prices rise, your debt may not do so in case you think about buying a loan with the bank.
So buying a property can bring you more benefits than simply saving your money, since the chances of your money being devalued are more dangerous for your money than for your properties.
The value of the real estate is measured in dollars. This is due to the strength of the US currency compared to the Mexican peso.
Does this mean that if I bought my house in pesos it was wrong?
No, it's the opposite. Thanks to the increase in the dollar, many people seek to invest their savings by buying US dollars. Do you remember how a few years ago the dollar was worth approximately 10 pesos? Today its value is almost double. However, as we explained, saving your dollars in your piggy or under the bed is not a good idea to help your money grow.
The differences between the purchase and sale of the dollar in these institutions can make you end up without a substantial gain. On the other hand, acquiring a property is always a safe investment, since you can not only increase the value of this through goodwill, but you can also be sure that your investment will be valued by the value of the dollar, and as we already explained in the Previous point, even in inflation the prices of real estate tend to rise.
Being a tangible and fixed asset, you can be even more sure that your money is in good hands and with greater probabilities of growth.
As we said at the beginning, real estate is attracting the attention of those young people who want to buy a safe pass for their future. There are those who are investing in the specialization to obtain jobs with higher income. Others are guided by their interests and passions and end up creating apps or supporting companies that combine technology and the search for a better future.
However, one of the tips you should always consider when investing is to diversify your investments.
We have already talked about the investment and how a physical property can protect your money in this situation, but as you will remember in our definitive guide for the real estate investor, diversifying your investments also protects you against possible crises. Try to acquire diverse properties, from lots to residential houses or apartments for rent and vacation.
The location plays an important role. If you are thinking about acquiring apartments near vacation areas or beaches, try to do it in different destinations. You could acquire real estate developments in the Mayan Riviera and at the same time acquire real estate developments in Playa del Carmen. Two places that although they may be close or related are totally different, while the Mayan Riviera is increasingly positioning itself as the place to enjoy nature, the retirement and the style of the living resort; Playa del Carmen is one of the most cosmopolitan and exclusive cities for nightlife. And remember that Quintana Roo is one of the states with the highest investment potential.
One of the secrets of expert investors is that they never stop learning. There are many who fear real estate investment because they think they need to know everything from the beginning or be doctors in exact sciences or something like that.
The reality is that you do not need to be Sheldon Cooper to understand that to invest in real estate you need to enter the market and know what are the possibilities and the probabilities. Remember that time plays a very important role, especially when you have the opportunity to find real estate developments in a presale or in areas that are projecting with a capital increase gain.
Not to mention the amenities and vertical developments. More and more investors are betting on real estate developments that appeal to the quality of life of those who wish to live in them, especially if they are near schools or residential areas.
And not only investors, but more and more users also prefer their tranquility and security as well as that of their family. In the end, although real estate investments are a super-rational factor, buying a house or renting it has a high emotional value and as you already know, this element can also help you sell experiences, either to those who wish to stay in your condo in Tulum or those who want to rent or buy your house in the north of Merida to live with your family.