In the search for advice on investing in viable options, since the COVID-19 (coronavirus) pandemic, many people have turned to real estate because of the financial guarantees it offers, its high yields, and the fact that it is an asset that contributes to personal and family wealth.
In addition to this, the fact that the new generations no longer have the possibility of a pension for their retirement years has meant that a younger and younger sector is starting to prepare for their golden years at an early age.
Moreover, this type of investment is even one of the best ways to achieve financial freedom, through passive income from leasing.
The reality is that investing in real estate is a wise decision at any age, so to help you choose the right property for your needs we have prepared a list of tips that will be very useful.
5 tips for investing in real estate
Both in good times and bad, real estate is an excellent alternative to protect our capital from inflation and financial crises.
While there are many tips that can help you, we have gathered the five most relevant and that will help you get started in the world of real estate investments. We tell you what they are below:
1. Define your financial situation
Although it seems obvious, not many people take the time to review how their financial life is going before thinking about investing. Consider the following:
- Analyze the status of your personal finances: what are your income, expenses and the amount you are going to invest.
- Set a time horizon: this refers to the time frame in which your money will be invested. For example, if you plan to buy land to build your dream home, for retirement or to make a profit by selling it, this point is vital.
- Think long term: a mistake many make is to focus on the short term, however, patience and good research on growth projection can provide greater benefits.
2. Establish your investor profile
There are risk factors in an investment and real estate is no exception, therefore, you must be willing to assume the risks and feel comfortable with your investments. We can classify the profiles in three general levels, which are:
- Conservative: short-term investment with lower risk, leading to lower returns.
- Moderate: Medium-term investment where a balance is found between risk and returns.
- Aggressive: long-term investment with a high risk rate, but high returns.
Real estate is considered a moderate risk due to its stability and good yields.
3. Research the options available in the market
Thanks to the internet it is easier to find options, since you can access all the information you need in one place. These are some of the points you should consider:
- Location: consider investing outside your city in places with high potential for capital appreciation and accelerated growth, such as the state of Yucatan.
- Type of real estate: the real estate market is very broad, you can choose a commercial property, an apartment, a house or land with different land uses. Choose the one that best suits your investment needs.
- Legality: make sure you know the seller's reputation, whether it is an individual or a real estate company, and that they are not dealing with irregular properties.
4. Make a budget and get professional advice
A good investment implies avoiding indebtedness. By this we do not mean not using mortgage loans or financing, but having enough income to make the payments without compromising our economy.
With the help of a real estate consultant you will be able to make a more accurate budget, since he/she can guide you on the expenses that investing entails, for example: taxes to be paid,deed expenses, notary fees and others.
5. Diversify your investments
There are several types, from fixed income assets, variable income, investment funds and others that you can consider to complement the purchase of a real estate property, since the great investors advise not to put all your eggs in the same basket, that is to say, diversify your investments.
In real estate this can be translated as buying more than one property, so pre-sale land is highly recommended due to its lower acquisition and maintenance costs.
Extra tip
Money saved may provide security, but by itself it will not grow or offer greater benefits, which is why the culture of investment is more important every day.
Residential lots, unlike other types of real estate, offer extra benefits, since most of them are urbanized lots with amenities that provide a higher quality of life and boost the increase of capital gains.
Organize your financial life by investing your money in residential developments with serious and experienced companies that provide legal certainty, such as INMOVE
Secure your assets with real estate investments in Yucatán
Now that you know the best tips for investing in real estate, the next step is to find the ideal location. Yucatan is a land of opportunities to grow in the real estate sector in the industrial, commercial and, above all, residential sectors.
Whether you wish to acquire residential land to move to this state, live off your rents or as a retirement option, Yucatan is undoubtedly the most suitable option and guarantees that every peso invested in land will be multiplied.
At INMOVE we are committed to the development and growth of each of the people who invest in our projects. Contact us and discover the options we have available in Conkal, an ideal place for real estate investments.
If you want to start investing in real estate in Yucatan, we invite you to visit our real estate blog with articles prepared to help you make the best decision such as: Benefits of buying developed land and reasons to invest in Yucatan..
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