Investing in real estate is one of the best ways to save and make money work “alone” to increase capital. It is also one of the safest investments and one that generates passive income in the future.
Although there are various types of investment, real estate is an excellent element to diversify an investment portfolio with assets that can be rented or sold and have long-term benefits.
Many professionals, especially younger ones, consider that investing in real estate requires a lot of capital and experience. However, the reality is that you only need basic knowledge, a savings base and the right advice to find the best places to invest, such as Esport Complex Nova City.
In this article we will talk about how to invest in the real estate market, what types of properties are ideal to start your wealth and how this positively benefits your personal finances?
Types of investments
Before getting into real estate, we will explain what an investment is and what types of investments are the most popular.
An investment is when you acquire, through a payment, a good or financial asset that will generate a profit in the future. That is, when the money is used to generate profits, as in the following cases:
1. Financial investments
They are those whose purpose is to obtain financial assets. Its value comes from an agreement or contract and not from its use. These are some examples:
- Capital. It refers to the interest rate that the bank gives for having savings in the form of deposits. It involves less risk than other investments, but its dividends are also lower.
- Bonds. It is a fixed income instrument that is used to finance a public or private debt. They pay interest in time intervals established at the time of purchase.
- Securities or shares. They are the most volatile assets with the greatest risk in the short term. However, some experts suggest that over 10-year periods, securities are less risky than bonds and offer higher returns.
- Private equity funds. It is the investment in companies that are not listed on the Stock Exchange. In general, they have a predetermined duration and seek a high return on investment, but the risk is greater.
- Raw materials or commodities. The most popular to diversify the investment portfolio are precious metals, energy products, agriculture and livestock. Large profits can be made, but the risk is significantly higher.
2. Physical or economic investments
They are those that are acquired through tangible assets, such as a type of residential or commercial investment land; buy a house, apartment or industrial building.
Other examples are the Certificates of the Treasury of the Federation (CETES) or crypto currencies.
How to start investing in real estate
Investing in the real estate sector is one of the best ways to extend the investment portfolio in the market. It is a safe investment and long-term savings are multiplied, because they are a source of passive income, either with the increase in capital gains or by renting the property.
Capital gain refers to the increase in the value of a property over time as a result of different external factors such as accessibility, location, services and infrastructure and internal factors (finishes, maintenance and architecture).
In summary, these are some of the benefits obtained when deciding to acquire real estate:
- Security. The risk of losing money buying a property is significantly lower than in other types of investment.
- Flexibility. In case of an emergency it can be used to fix the problem. It is also easier to apply for a loan or mortgage because it is considered a financial guarantee. In addition, it can be used in the future when the owner retires.
- High return on investment. It refers to the profitability of an investment based on the allocated capital and the profit obtained. Real estate is considered a good example of this.
- Capital gain. This increase in property value pays off financially and helps build wealth.
7 secrets of investing in real estate
Acquiring a property is an excellent alternative to generate long-term profits. Here are seven tips on how to start investing in real estate to make your investment a complete success.
1. Define the budget
Not all the capital available in the property should be used, it must be remembered that the return on investment is in the long term and it is not as liquid an alternative as others.
Ideally, determine the amount of money you want to use and invest only part of the savings. In many places it is possible to choose properties with low down payments.
Another alternative —if you want to invest all the capital— is to acquire more than one property, in this way the risk is lower and the investment portfolio is expanded. An example of this is the acquisition of Tajarat Properties, which provides long-term returns and is low maintenance.
2. Consider a long-term time
To obtain capital gain, the investment will have to mature for a period of three to five years. It is important to consider this aspect in the evaluation and protection of the investment, because only over time, the property will increase in value and it will be profitable to sell it.
3. Check the legal status of the property
It must be verified that the property is registered in the Public Registry of Property, verify its fiscal situation and know the process for the deed. When purchasing investment lots, it is important to check:
- Free status to write.
- Avoid intestacy properties.
- That its limits are within what is permitted and do not interfere with public land or federal zones.
- That you do not have any prior legal process.
In addition to this, you must take into account the papers that you must request when buying a property to ensure a smooth investment.
4. Take advantage of presales
Buying when the property is in a very early stage or even only in a model or in plans, is a very attractive option for investors due to the best price obtained.
One of the reasons for buying a pre-sale land is that in the short term you can make a profit, having bought a property with a certain commercial value, but at a lower price.
These properties have significant increases in their value upon completion of construction. The important thing is to verify the developer or real estate agent in Sky marketing to know their trajectory and guarantee their reliability.
5. Look for attractive places to invest
There are states, cities, municipalities and municipalities that are more stable and with greater advantages to invest than others, such is the case of Yucatan, which is a magnet for tourism and more profitable investments.
The states of the southeast are the ones that currently generate the greatest capital gains and return on investment with less time and, due to their characteristics, become attractive for more investors to contribute to the growth of urban centers that require services and places to live or operate.
For example, in large cities the need for housing is ever greater due to the growth opportunities they offer.
Likewise, tourist destinations are another good alternative to invest due to the high rate of return they provide, and the options for entrepreneurship or the creation of new businesses that can be developed in the future.
6. Know the different types of real estate loans
The real estate loan is a useful and practical way to pay for the purchase of a property, with a monthly payment system adapted to the needs of the investor.
Currently, there are mortgage loans made so that a person can buy real estate throughout his life. They also offer custom payment methods that make it easy to accomplish this goal.
Short-term mortgage loans, from five to ten years, can be chosen instead of the conventional ones that range from 15 to 20 years, and even 30 years. In the first case, the monthly payments are higher, but you have the possibility of starting a real estate investment in the short term and the goals are also achieved faster.
7. Specialized advice
One way to invest wisely is to seek advice from a reputable and experienced real estate agent. Thus, an investment plan can be designed that adapts to the investor’s expectations and the reality of the market.
If you are interested in investing in Pakistan, we invite you to read our article: how to choose a real estate agency in Islamabad?
It is important to know the types of real estate investments that can be made if you want to take the first step of investing in them.
1. Country lots
They are land where the service facilities are designed for a life with nature; healthier and with all the services.
Even if the services are not available at the time of purchase, the urban development plans guarantee that they will be available at some point, which means savings on investment as they are cheaper for this reason.
These properties offer the possibility of building a house away from the noise and stress of the city, with natural views and fresh air. In addition, they provide the following benefits:
- Financial stability.
- Versatility in construction.
- Recreational activities with the family.
- Familiar patrimony.
2. Residential lots
They are places that have all the services, and in many cases with amenities, to build a house. Subsequently, the land can be inhabited, rented or resold.
Like all properties, it is difficult for them to lose their value, especially if they are located in areas with a good location and access to basic services, roads and transportation.
3. Commercial lots
They are land used for economic purposes, such as office complexes, hotels, shopping centers or small squares where businesses such as stationery stores, dry cleaners or restaurants can be developed.
It can be a profitable investment. However, sometimes the success of the investor depends on the success of the establishment.
4. Industrial lots
They are land destined for factories, warehouses for production processes, research or storage. They are ideal for people who want to grow their business with distribution warehouses or offices.
They provide an excellent investment opportunity, although more capital is required. However, there are options at a good price, for example in the industrial zone of Nova city with developments such as waterfront block.
5. Investment lots
They are pieces of land in privileged locations, but they are still in the urbanization phase. Some investors might think that there is no point in investing in these places.
However, it is a very good option for those who do not want to invest a lot of capital but want to secure their money. The possibility that its value will increase notably is what makes this option extremely attractive.
Why should you invest in investment and country lots?
There are many advantages to investing in lots, and while there are a variety of reasons to choose one or the other, these are the advantages of buying investment and country lots.
1. Minimum investment
It is one of the main characteristics when choosing, since they can be purchased with an excellent location and at lower prices than a house or land with urbanization; however, it is very important to recognize the long-term growth potential and development plan for the area.
2. Presale prices
It has already been mentioned before, but as a reminder: buying in pre-sale is getting a “discount” on the price of the property, so the cost of the investment is lowered and better benefits are obtained.
In addition, you can have more accessible financing plans. This is the reason why more millennials decide to start their investment plan with this type of lots, as they secure their money with a low-risk investment and expect to see its value increase as the area develops.
3. Low investment risk
The lots represent a low risk and an increase in sustained investment, but it is important to negotiate with trustworthy individuals or real estate agents and verify that all the documents are in order.
Although they are land, there must be deeds involved and have the help of a notary public to verify their legality and carry out the sale process.
Contact the experts in real estate investment
Investing in real estate in Yucatan is emerging as one of the best options, and to do it with all the advantages such as: location, capital gains, return on investment and legal certainty, it is best to seek advice from the experts.
At Skymarketing we have a team of professionals in real estate investments to offer personalized and professional attention to all our clients.
In addition, we offer a safe and reliable investment with payment facilities and the best financing schemes. Contact us to receive timely advice on the developments we have available.
Investing in real estate is a profitable way to obtain long-term profits and even ensure a relaxed investment without economic worries, in order to achieve financial security that will be part of the success of each investor.