Buying a good property in an area that is in the process of maturation could generate a large return, as it is expected that this market will pick up soon, especially as more mortgage financing is granted.
- Investing in real estate is equal to seeking an interest in the land and tends to be an alternative that gives psychological security, because it is tangible, can be visited and displayed.
- As every market has its considerations with knowledge and information, it becomes privileged. Knowing, for example, whether avenues, schools, or transportation routes are planned in the future, affects buyers’ perceptions and drives up or down the price of a property.
- To measure profitability remembers that the transaction cost is high between paying taxes and notary.
- There is no insured period; Many investors think that buying land is decisions that can have a high gain after up to 15 or 20 years. It will depend on the circumstances and movements of the urban settlements.
- Obviously also consider possible losses of value of property derived from fortuitous cases.
- In this market, you will surely encounter real estate agents as operations intermediaries. Usually, it is thought that it is always better to deal with the owner. But sometimes they help the difficult process of agreeing to both parties.
- One of the advantages of investing in real estate is the little technical knowledge required to invest in them, and the relative simplicity of investment management, unlike, for example, stock market investing.
- Investment in real estate is usually a safe investment because real estate is hard to depreciate (lose its value), and, so, tend to increase in value over time.
- Investment in real estate is usually a profitable investment. When investing in real estate it is possible to make a lot of money in the medium or long term. Although, generally, to start investing in them, you need to have a good capital (investment in real estate is usually done by investors who have before generated another source of income such as a business and high salary).
- Another advantage of investing in real estate is the tax advantages that they present. For example, the deduction of taxes for depreciation, and other advantages that occur in some countries such as the possibility of not having to pay taxes if the gain obtained by the sale of a property is used to buy a new real estate.
Risks and benefits
- Need immediate liquidity; that you intend to sell it in the market value and consider that the time in which you are going to make the sale can vary between six and twelve months are some of the risks that you have to invest in real estate.
- Whereas, if a correct choice is made. The advantage is the obtaining of profits of up to 30%, in an average period of three years. But it depends on the type of property, the place where it is, the time in which it is based property and that there have been no adverse circumstances during the time you have owned the property.