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Real estate, a sector to invest in 2023

enero 17, 2023
real estate

The real estate sector is an always solid and viable option, with constant growth, financially rewarding the owner and increasing their assets.

(Expansion) – Like all economic and industrial sectors, the real estate sector is not immune to the effects generated by the macroeconomic context, inflation, and other past situations such as the pandemic.

Despite this, Real Estate is one of the most solid segments for investment in 2023, even considering the high inflationary levels in the country.

Although construction and real estate are not immune to inflation and the monetary decisions of the Fed and the Bank of Mexico, it is important to mention that one of the main characteristics that keep the real estate market active is the need to build equity for all the population.

This is not coincidence. Despite the fact that Mexico is going through a significant housing deficit, the construction sector is growing faster than the national economy, representing a strong increase in the prices of inputs and building materials, boosting the growth of Civil Works.

According to a report published in the middle of this year by BBVA, construction GDP in 2021 was 1,082 million pesos; 7.2% more than in 2020. And he adds that said growth rate is higher than that of Total Accumulated GDP of 4.8%.

Given this scenario, and unlike other investment vehicles, real estate in Mexico is a market with an always upward trend and of a very different nature from Forex, the Stock Market and even cryptocurrencies.

Consider, for example, how volatile other markets are. Even that of cryptocurrencies, which is very fashionable, is an instrument that changes in seconds, and that can fall in an instant due to speculation, with the simple fact that an opinion leader in the sector publishes a ‘tweet’ destabilizing.

Real estate, on the other hand, is a safe scenario that provides protection for your money in times of uncertainty in which, in a catastrophic scenario, it is certain that it was invested in something tangible, which has a tendency to increase its value. value derived from goodwill, and that can generate cash flow through rental income.

Another important factor is the possibility of putting the property to work, both in the case of homes and business developments such as warehouses and offices: all have ample profit potential when rented.

In my experience within the residential sector, I highlight that this has the goodness that they are properties whose return on investment through rents is not only solid, but also tends to increase according to the capital gains in the area and inflationary levels.

In conclusion, although inflationary levels are expected to remain next year, we must say that the real estate sector is always a solid and viable option, with constant growth, financially rewarding the owner and increasing their assets.

A house, an apartment or a residential building, is an investment that always has a high potential in terms of profitability, and a way of protecting assets from unstable economic situations.

5 Realistic Real Estate Considerations!

After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I strongly, believe, in order to maximize one’s potential to succeed, profit, and be happy, with any real estate purchase, decision, etc, it is important to proceed, wisely, carefully, and in a well – considered manner! I refer to these, often, as the truisms, of any involvement, actively, related to this industry! Since, for most people, the financial value of their house, represents, their single – largest asset, doesn’t it make sense, to proceed, as wisely, as possible, in an informed way? With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 essential, realistic considerations.

1. Don’t try to market – time!: Very few, are able to, and lucky – enough, to market – time, when it comes to this, specific industry, and component, of our economy! Rather, one should consider, several other factors, including: affordability; ability to meet present and future needs; liking the specific neighborhood; financial/ economic issues; etc.

2. Will it be a starter – home, or, longer – term?: From the onset, it is wise, to consider, whether the specific house, will be, a starter – home, or one, which you keep, for a longer – term! This process makes it easier, to make the best decisions, in terms of the specifics of a house, such as size, rooms, features, and needs/ priorities! Obviously, one can’t accurately, predict/ read, the future, but, if the objective is longer – term, it means planning, for a family, quality schools, and other conveniences, needs, priorities, etc!

3. Differentiate between wish – list, and, actual needs: A wise home – buyer, enters the process, with two lists: one, which is a wish – list; and the other, one’s actual needs, and priorities! This means, realistically, evaluating your personal circumstances, as well as finances, and comfort zone! The wish – list, should help one’s selection, when the actual needs, directs you to a few options, and fall – into, your budget, and other priorities, needs, and perceptions!

4. Why would you want to live in this area?: What might one specific area, offer, which makes it attractive, to you? Consider factors, such as: safety/ crime; schools; convenience to stores, transportation, houses of worship, etc; and other personal priorities, etc!

5. Why any, specific, home/ house?: What makes any, specific house, appeal, to you? Be careful, to have it inspected, by a professional Home Inspector/ Engineer, so there are far – fewer, undesirable surprises! Consider, what you feel are the highest priorities, for your home, and why? Also, identify, how a property, might enhance, or harm, your personal happiness, and well – being! Obviously, be certain, you don’t become, House – rich, but financially – poor!

If you proceed, paying attention, to these, and other considerations, your potential to make the wisest, personal decision, is enhanced! Will you be, your own, best friend?