When was the last time you stopped to carefully reevaluate the performance of your investment portfolio, including physical assets such as real estate? While it is important to sit down to do a typical annual review with your financial advisor to review the distribution of funds and stocks is important, it is also essential to talk about other types of diversification of your portfolio, including insurance assets as real estate.
What is real estate investment?
There are a wide variety of ways to invest in real estate, from buying real estate trusts and FIBERs (Investment Trusts and Real Estate) to acquiring a private residence or holiday residence, retail premises, office space or a building Departmental, the options seem endless. For our purpose, we will look at real estate investment versus investment in the stock market in general, to further delve into and take a look at one of the most lucrative ways to invest in real estate that are available today: Vacation residences that function as turnkey rentals (furnished and ready to move in).
But let’s not get ahead … first let’s take a look at how traditional investment markets compete with real estate over time:
Mexican Stock Exchange, S & P 500 and Dow Jones Versus Real Estate Investment
When thinking about the stock market, we must take into account in which we are going to concentrate. On the national scene, the Mexican Stock Exchange currently faces an unexpected competition, opening for the first time in history, a second option: the Institutional Stock Exchange, backed by Nasdaq technology, which has sparked controversy among investors . Let’s add to the picture a volatile economy susceptible to political issues (the current tension between Mexico and the United States) and electoral (three states hold elections this year, including the State of Mexico, key to predicting the presidential election of 2018), and we can glimpse A turbid future in this sector. As a novice investor, dive right into the stock market right now without having a glimpse of all the edges included is like dunking into a muddy swamp that harbors all sorts of unknown and undetectable dangers.
Thus, what might seem the best investment options at first glance compared to real estate, are dangerous when you include the full variables. For example, if you also take into account inflation, as well as the annual cash flow of a property investment property, you will be getting a much clearer reading.
This also leads us to another important point: Why invest in real estate in the beginning?
If you did your homework, you probably would not respond «by appreciation.» Although property must definitely be appreciated – which means you are making money every year just by owning it – simple growth by appreciation should not be the only approach of most real estate investments, and it is best to leave this approach to land practice Banking – the purchase of land with the expectation that its value will increase with the passage of time, and then sold to other prospects who want to develop that space. So unless that is your goal, look for income-generating properties that can provide you with a strong return on investment (ROI), such as a turnkey holiday residence or a multi-unit property that you can rent for steady income.
Real Estate Investment Strategies That Work
In the last 10 years, smart investors have done very well, thanks to experienced real estate investment strategies, but regardless of the stage where the housing cycle is, buyers can feel comfortable with the proven fact that they always It is possible to make money in real estate … If you know where to look.
Most financial advisors will not tell you this because they do not benefit you, but both the acquisition of physical real estate and land banking are two of the safest investments in the world, as long as the location is carefully selected and Increasing demand. However, finding the right property can be challenging even for experienced real estate investment companies, especially since the rental market has become very competitive in recent years. Ideally, look for a property that you can actually afford, with a consistent maintenance plan that will provide a continuous return on investment (ROI) and solid rental income.
Why Holiday Residences for Rent?
Acquiring a holiday residence for turnkey rentals (furnished and ready to move in) in a thriving popular destination is one of the best proven strategies for a strong return on investment, as it offers all the ingredients for a successful real estate investment. Consider investing in real estate in the Riviera Maya, for example. New developments in Playa del Carmen, Puerto Aventuras and Tulum are opening up a world of possibilities, offering a return on investment (ROI) of between 8 and 14 percent and the flagship plan «No Worry Free Ownership» for owners Which ensures the best positioning to rent, immediate maintenance actions, timely payments directly to your bank account and – best of all – your own vacation home in the Caribbean.
The best thing is that this acquisition will help you diversify your investment portfolio and provide you with a steady source of growth that is not tied to the vagaries of the traditional stock market as well as a major hedge against inflation. Just be sure to work with an experienced real estate investment firm that can help you understand all the rules of real estate acquisition.
Are you thinking of buying an investment property? Where do you think it would be the best place to invest? – Share your opinion.
