Housing continues to be a profitable investment in general. According to BBVA Research’s Real Estate Situation Report in Mexico, housing appreciation, the index of the Federal Mortgage Society (SHF), reached 9.9% in annual terms halfway through 2018 and the middle and residential segments appreciated at a rate of 10.7% on average across the country.
Although investing in real estate implies a significant investment, the truth is that the risks are lower, being a good diversification alternative to achieve stability and financial growth.
There are different ways to invest in real estate:
Buying / selling real estate
Buying an apartment, a house or an establishment and then selling it is a safe way to protect the money and make it grow in the face of constant changes in local finances. However, this is not a simple way to invest. To achieve it requires a strong investment that can come from equity or from a mortgage loan.
Investing in this way requires facing the commitment with the obligations and deadlines involved in the process of buying and selling the property(s), such as payment of taxes and services, credits, notary services, among others.
Another modality is to buy a property in order to rent it, either for commercial or residential use. In this case, it is through monthly payments that yields are obtained. The advantage is that, according to the quality of the maintenance applied to the property, the higher its capital gain and it is possible to obtain more profit.
This is the most recent form of investing and is achieved through fintechs and is dedicated to raising funds through small investors through blockchain technology. They bring together a group of investors, who acquire a part of the property to later rent it to third parties. In this way, it is possible to invest in this sector with smaller amounts of money, but which allows for returns.
When investing in real estate, the objective is to generate wealth, so it is important to protect it.
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