Three ways to invest in real estate, a safe way to grow money By BBVA

Buying a property (or several) is an alternative to make money work. Real estate offers financial security for investors and has a positive impact on the local economy.

Housing remains a profitable investment in general. According to the BBVA Research Real Estate Situation Report in Mexico, the appreciation of housing, the index of the Federal Mortgage Society (SHF), reached 9.9% in annual terms in mid-2018 and the middle and residential segments appreciated at a rate of 10.7% on average throughout the country.

Although investing in real estate implies a significant investment, the truth is that the risks are lower, being a good diversification alternative to achieve stability and financial growth.

There are different ways to invest in real estate:

Purchase / sale of real estate

Buying an apartment, a house or an establishment and then selling it is a safe way to protect money and make it grow in the face of constant changes in local finances. However, this is not a simple way to invest. To achieve this, a strong investment is required that can come from own capital or from a mortgage loan.

Investing in this way requires facing the commitment with the obligations and deadlines that the process of buying and selling the property (s) implies, such as payments of taxes and services, credits, notary services, among others.

Lease

Another modality is to buy a property to rent it, either for commercial or residential use. In this case, it is through the monthly payment that yields are obtained. The advantage is that, according to the quality of the maintenance applied to the property, the greater its surplus value and it is possible to obtain more profits.

Crowdlending

This is the most recent way of investing and it is achieved through fintechs and they are dedicated to raising funds through small investors through the 'blockchain' technology. These bring together a group of investors, who 'acquire' a part of the property to subsequently rent it to third parties. In this way it is possible to invest in this sector with smaller amounts of money but that allow for returns.

When investing in real estate, the goal is to build wealth, so it is important to protect it. Insurance that adapts to all needs can be found at Seguros BBVA . Having good insurance can help prevent emerging expenses or situations that endanger the investment.

"Call Eli Torres at (832) 430-2107, for your home buying and selling needs."

Source: www.bbva.com