Investing In COVID-19 Times
The first quarter of 2020 has been full of surprises, the world is alert to the economic repercussions of Covid-19. The outlook seems uncertain; however, it may also be a decisive moment to invest. The first advice is to avoid panic movements and have a well-diversified portfolio, they will help you to better face the impact of this new virus.
“The last health crisis, which was in 2002-2003 with SARS (Severe Acute Respiratory Syndrome). From November (2002) to March 2003 there was an adjustment of 14.7% and closed the year with a profit of almost 40%” So, a great alternative is long-term investments like real estate. Since their risk is lower, and in a place like the Riviera Maya, once the health situation is controlled, they will have a significant positive rebound.
Now, Why invest in real estate?
1.- It offers security and flexibility in the future. Buying a house, apartment or land is an action that will protect your future and finances in the event of an economic or personal emergency.
In the case of being the head of the family, for example, having one or more properties will give you the certainty that, when you need it, you will have a roof over your head, a possible source of extra income and a place where your family can rest without concern.
On the other hand, if you are an entrepreneur, in the future you will benefit from an investment in real estate since these will allow you to build a network of properties that could serve as a guarantee for your businesses and that, in the end, you can take full
advantage of receiving return part of the investment you made in the short or medium term.
Additionally, investing in real estate will give you the flexibility to build more businesses within the same properties and continue to increase your capital and earning capacity. Thinking long term, a property is considered a financial guarantee that you can use when you want to retire.
2.- The investment options are varied and with different results. Investing in real estate does not necessarily mean just buying a home with a home loan. The properties that you can buy range from houses of all sizes, traditional apartments, apartment buildings, real estate developments, land for construction, commercial premises, offices to rent long term, buildings, apartment buildings, among others.
This wide variety of investment options allows you to diversify your money and lower the risk of fraud losses and sudden changes in the economy.
Likewise, each property has its investment conditions, so you can make payments in different periods depending on the circumstance of purchase and your economy. For example, through real estate loans, using your savings, paying cash or making deals with financial institutions so that the investment process is tailored to you and best benefits you.
In terms of results, having a wide variety of real estate investments will allow you to use
your properties creatively. Whether you rent them, merge them, occupy them for your own benefit, use them as commercial premises or do not want to give them immediate use, all the options generated from your decision will be only for your benefit and that of your loved ones.
3.- Keep your money active. There is nothing worse than having money and spending it little by little on short-term
pleasures. If you keep the income you receive weekly, monthly or annually static, it is a guarantee that you will lose them in situations that seem necessary or urgent and you will lose the opportunity to invest in real estate promptly.
Although the real estate market is indeed on the rise and home sales are the most common, property prices increase in the country at a percentage that is better to take advantage of when it is at its lowest point.
According to the 2020 House Price Index, in the first quarter of this year alone, the price of properties purchased with a mortgage loan increased 9% compared to last year. This means that, on average, the price of houses in this period amounted to 1 million 71 thousand 235 pesos, and the median price was 617 thousand 755 pesos. As mentioned above, goodwill and the context in which a property is located make investing in real
estate an activity that pays economically and, as an added value, is part of your wealth. Planning is an important key to having stable personal finances. It is better to take advantage of your income in a real estate investment that will bring you many benefits in the future than to leave the money under the mattress at all times.
Investments in real estate will make you benefit from passive income, that is, those for which you will have to make a minimum effort to obtain and which is also received regularly.
Real estate provides tangible and adaptable benefits that you can use to your advantage in many ways. You can inherit them from your relatives, remodel and rebuild them to maintain their profitability and gain the opportunity to continue investing and increasing your assets.