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5 Reasons To Invest In Real Estate

Author:
Francisco Yáñez
Posted in:
Investment, Real Estate, Riviera Maya
Comments:
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Investments are always a subject of great interest because they tell us about future possibilities and opportunities in present decisions. From bonds and shares in the stock market, to the acquisition of insurance that generates ROI, the options can be a lot.

So, you have some money and the intent to invest it in an intelligent way, what can be the best option? Definitely, real estate can offer certain advantages including stability, higher yields, the generation of a passive income and the reduction of risk, because even in complicated times, real estate behaves better than the others.

Given the large amount of information that we have, we decided to collect the top 5 reasons to investing in real estate is a great solution for your investment strategy.

  1. ADDITIONAL INCOME

One of the reasons that is commonly mentioned is this. But the reality is that it is a very smart move because it earns twice: on one hand it increases the value of your property constantly, potentially obtaining a large value and on the other hand it can generate a monthly fixed income by keeping it for rent.

2. INCREASE OF VALUE

As we mentioned in the previous point a property generates value over time because, unlike stocks or bonds, its value is supported by the physical value of the land and brick. In most countries the land is constantly rising because the scarcity of land generates greater surplus value and, when there is scarcity, it is an investment that increases for several generations.

3. DIVERSIFICATION = STABILITY

It is the job of a good financial advisor guiding you to a great destination and diversification is the way. This reduces the total risk of your portfolio of assets and securities by having diverse sources that protects the threats of the market, balancing the volatility of the other assets and maintaining more constant returns.

4. MORE REDITUABLE THAN OTHER OPTIONS

If you think about putting your money into a savings account, you will find that the interest rate is not as attractive compared to annual inflation, so the profit is minimal if there’s any. The stock market itself is very fluctuating and you can find high levels of performance or quickly lose everything, which makes it risky. Insurance is a longer-term bet, so it takes too much patience.

5. FISCAL BENEFITS

Who does not care about this topic? It is becoming increasingly difficult to find the right strategy to be accountable to the government, but real estate investments help you in your declaration, since it does not tax your rental income, but the indexed cadastral income of your property. (This can vary depending on your country).

Of course the reasons do not end here, there are many more like buying in pre-sale, because you guarantee a lower investment and more value; unlike other options, in real estate you protect the value of your currency and do not live with the concern of the fluctuations of gold and other commodities; It protects your retirement and perhaps most importantly, they are assets that you can inherit to guarantee a better future for your family.

So in the next conversation you have in your office or with your friends you can already explain why it is more convenient to invest in real estate. Now, what do you expect to start diversifying your money and maximizing your assets?

Author: Francisco Yáñez