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Smart Money, Smart People

Coronavirus impact, is it a good idea to invest in real estate during a pandemic?

31/07/20 02:12 PM / by Mónica Novelo

Tiempo de Lectura: 10 min

 

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Yes, it is, because real estate is a safe haven, and in this article we will tell you why.

Why are real estate properties "safe havens" during COVID-19 

invertir en bienes raices coronavirus

In a crisis, few things are better ideas than to remain prepared, calm, and ready to invest, and real estate has always been a safe asset that can help you protect your money. Real estate properties don’t depreciate. Actually, they always adapt to supply and demand, and eventually recover their value with time.

The story is the same right now, and if you have the funds, then buying a property may be the best way to put your savings in a safe place.

Despite the fact that real estate depends on external factors to increase or maintain its value, is really weird that a property loses so much value that you lose money in the end, that's why investing in Real Estate is a great way to protect your savings.

Reasons to invest in real estate during the pandemic

coronavirus bienes raices

1. Property prices will be maintained during quarantine, and towards the end of 2020.

According to experts, construction companies and real estate companies will keep property prices stable this year. However, according to estimates by Jorge Martín Páez, IDEI's director of operations, real estate prices will increase by 9% during 2021.

If you have the opportunity to invest in real estate, now is the time to do it.

2. Protect the value of your money against volatile currencies.

Real estate and land are the best currency you can find. They never depreciate, and are always raising their value as well as adapting to the price of other currencies.

Furthermore, experts suggest that the real estate acquired during the pandemic will have an increase in surplus-value of 17%, due to the currency exchange rate. This means that, if you're buying in dollars, your money is worth more in places like Mexico, because the peso is weaker.

In short, you can get more for less money.
 
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3. It will provide extra income when leasing.

One of the best options for extra income, even during a possible recession or economic crisis after a pandemic, is still the leasing of properties; specifically houses and apartments.

4. It's a less risky investment than other financial or stock instruments.

Unlike other investment tools, real estate is a product that doesn't suffer as much from speculation and fluctuations in the economy and market.

Real estate is characterized for offering a high level security and financial benefits in the medium and long term.

You must read this before buying very cheap land

Are you convinced? Well, let us tell you about some of our recommendations for investing in real estate during the Coronavirus pandemic.

Investing in real estate during the Coronavirus pandemic to protect your money: Best options

lotes residenciales inversion coronavirus

1. Residential lots with amenities

They are one of the best options for two reasons:

There's a great possibility that these will become the most purchased real estate properties after COVID-19, especially if they're located at comfortable distances from large cities, with access to their own amenities. This makes them an excellent business investment.
The relationship between purchasing price (especially if you buy it during presale season) and resale is very good, and can give you excellent returns.

Residential lots with amenities have always performed well and delivered an excellent ROI. Land, in general, has enjoyed excellent capital gain in Mexico.

From 2015 to 2018, its value increased by 35%, that is, each m2 of land rose to 35% in price within just three years.

2. Townhouses and country houses

 

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A trend that is not new, but that will surely become stronger, is the private housing development, equipped with shops and services (imagine some sort of mini-cities) where the inhabitants can lock themselves up to live without worrying about the outside world.

This is how you buy Real Estate from home

Why invest in them?

  • After residential lots, they will probably become one of the most wanted real estate products for the mix of comfort, quality of life and security.
  • Although the country houses in developments with amenities are usually more expensive, a good capital gain is almost guaranteed because they not only have areas for recreation, but also integrate everything necessary to live, consume, work and grow without having to leave your space.
In some states of Mexico with high rates of violence, there has been a tendency to live between walls that divide the city's housing developments to provide people a sense of security.

Now we will see this transported to the outskirts of the city, with mini-urbanisations ready to close their doors to any eventuality in the outside world, pandemics, crime, insecurity, poverty, etc.

Conclusions

When society resurfaces from its quarantine, they will undoubtedly set their eyes on their lack of space, on the little close recreation that surrounds them and on the reality of homes that are not made to be lived in. Residential lots located in safe cities (such as Mérida, San Pedro García Garza or Querétaro) will become the best option for many people.

Are you thinking of investing? If you want to get ahead of the future and put your money in the right direction, contact us now! We can guide you.

 

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Topics: Inversión, Inmobiliario, COVID

Mónica Novelo

Publicado por Mónica Novelo