Invest in real estate
Thomas Lloyd No Comments

You have some money to invest. You want your investment to be low risk, high return, provide a passive income in the short-term, and appreciate in the long-term; that is why you want to invest in real estate.

Here are some reasons why you should invest in real estate:

Low risk

When you invest in intangible assets such as stocks or bonds, you cannot see what you are getting. Unless you have extensive knowledge and understanding of market fluctuations, you are dependent on a stockbroker to buy and sell for you. This type of principal-agent relationship is potentially hazardous. You must trust the integrity of the broker, and hope that they are good at the game.

Real estate is a tangible asset – you can touch, see, smell, and hear what you are investing in. You are not solely dependent on the word of the broker. You can have the integrity of the property evaluated by licensed contractors; have the value assessed by multiple appraisers. The cards are in your hand.

Investing in real estate

High Return

When you invest in real estate, you can leverage its value to expand your portfolio. Once you have acquired a real estate asset, you can leverage the equity and capital gains of that property to invest in a new one. Real estate investments are profitable in the short and long term.

Short-term

Most people today live, work, and even play indoors. Owning real estate can allow you to capitalize on this need for personal space by providing you with a steady, passive income stream as a rental property. Properly managed rental properties will be cash-flow positive.

Real estate investments will also provide you with a hedge against inflation. As the economy expands, so will the demand for housing and commercial spaces. Property owners benefit from this inflationary pressure because increased housing demand causes rents to rise, and higher rents mean higher capital value.

Invest in real estate

Long Term

Property values almost always appreciate over time. According to the Sociedad Hipotecaria Federal (Federal Mortgage Society), housing values in Mexico have increased over the last decade at a faster rate (~ 6.69%) than the average annual appreciation of inflation (~4.4%). With this trend expected to continue, you can expect to get a handsome return on your investment.

Invest in Real Estate

Solid properties are built on solid foundations. So, a solid portfolio is built on solid investments. When you are ready to invest in real estate, Top Mexico Master Broker can help you build a valuable property portfolio.