After the international financial crisis, the idea of investing the savings in real property was overshadowed by news of bank failures that had put some money pension funds in mortgage-related assets.
A home is an investment that requires at least two years to start seeing an increase in value. However, that does not mean that buying a home as a way, to put your money to work, is a misconception.
The difference between the U.S. mortgage crisis and other places like in Mexico, or South America, is that the banks of the northern neighbor gave home loans to people who could not afford them, which made the demand for properties, and hence rise in prices. When the time came to pay, people could not deal with the debt, and the banks were a portfolio full of houses for garnish.
In Mexico, the conditions for obtaining a loan are much more strict, reducing the risks of so-called mortgage bubble (in other words up prices unjustifiably and generating imbalances in the markets) making the wind blowing in favor of the sector.
In 2013, the construction industry in the country could have, for the second consecutive year, outperformed the wider economy by granting more than 280,000 new loans. But some see this sorry state of affairs as an opportunity.
The document states that more developments will be built, which together with increased demand driven by government support and credit to buy homes, promote the performance of the mortgage market. Music to the ears of those who want to grow their assets through the purchase, and subsequent sale, of a property.
Before you run out and buy a house, you need to have in mind the advice of experts to have much awareness of what it means to invest in real estate.
Understanding that is not short term
If you think you can buy property and earn a large percentage of its value within a year, you better find another option. Properties need an average of six and eight months only to be sold at an affordable price. In this period you must add the time it takes you to find the property and what you should expect to appreciate. To begin to see an increase in the price of houses, apartments or land, the buyer must wait at least two years.
Do some research in the areas you want to invest your money on
If you want to make good use of your credit you need to conduct extensive market research. There are some institutions that can provide financing of between 80 and 90% of the value of homes with a long term prospect. However, can also make you consider first a property that you can liquidate quickly, and then selling or renting it to make additional income. Some popular areas, especially in Miami condominiums, are always a first class investment thanks to tourism, while other areas might not offer the same advantages.
A mansion may not be a good investment
If you have a net worth of up to $2 million, buying a property and keeping it for a period of five years can be a big deal at the time to sell. However, the properties that exceed the $3 million investment can be complex because the high value before the sale can be a difficult task that takes too long.
Before you get started as a real estate investor considers the following gold tips to choose the destination of your money.
* Purchase secure presales. The models can always be misleading, it is best if you bet for a house or apartment in you resort presale only concretized and proven with projects by developers.
* Do not sell ahead of time. To get back what you invested you must wait a minimum of 12 months and 24 to start seeing appreciation in the property, keep in mind that real estate is a long-term investment.
* Beware areas without goodwill. In a place where there is not much supply price increases, several factors may limit the increase in value including: construction of main roads and the lack of planning to deal with the load of traffic.
* Lean on someone who is knowledgeable. Buying property by your own judgment may be a wrong investment decision. In the same way you think of a broker to invest in stocks, you should consider a certified housing counselor to make a decision to buy a real estate.