THE OPPORTUNITIES WHEN INVESTING IN REAL ESTATE DURING COVID-19

The information communicated in the media about the economic situation we are currently experiencing can be somewhat confusing and inconsistent. New news reaches us daily about the financial repercussions of the global COVID-19 pandemic.
This can cause you to not have a clear view of reality. Therefore, today we would like to offer you data that will allow you to clarify any doubts and begin to make specific decisions regarding the care of your finances.
An extraordinary opportunity to care for and grow your capital in these difficult times is investing in real estate. This may be the appropriate solution to the economic instability that some of us are currently experiencing.

How to cope with the effects of the pandemic.

The situation in which we find ourselves is very particular, since it began with a global pandemic that forces the population to stay at home. This had a huge impact on the economy, by drastically reducing the number of customers in certain sectors, with changes in our consumer habits.
However, according to experts, the virus will be dispelled by the second half of 2020, at which time the population will finally be able to resume their daily activities without restrictions. In the meantime, it is vital that we continue to implement the recommended measures to prevent a greater number of infections.
But, regardless of all the negative consequences that the pandemic and confinement may bring, we must bear in mind that this is a time of new opportunities, new business models and new beginnings. Use this time to reflect on your financial behaviors and begin making changes toward more stable finances.
Given the economic uncertainty that many of us feel, it is not enough to just deposit our money in a savings fund. We must make strategic decisions that prevent the devaluation of our capital. A good way to keep your capital safe during this pandemic is through investment.
When you save, you simply hoard your money, which can be detrimental in the long run, as inflation drives prices up, devaluing the currency. Therefore, with the same amount of money you can buy less things.
As you can see, this is not a sure way to preserve the value of your capital. If, on the contrary, you invest it, the initial amount will grow, generating a profit above inflation and ensuring your future well-being.

Why invest in real estate during this time

Real estate is the safest investment to protect the value of money, being much more stable than other investment models such as shares in the stock market and other types of financial instruments.
Real estate not only retains its value, but increases it over time, thanks to factors such as its enormous capacity to accumulate capital gains and inflation. That is why these investments can be useful in difficult times, by generating returns through their income or their future sale, which can be made at a cost much higher than the acquisition cost.
Real property can act as a retirement or emergency fund, but it can also be used for work or housing without being depreciated.
Especially in times like this, investing in real estate represents an unbeatable opportunity to stabilize your finances and generate returns without the need for great effort.

Among the main opportunities available to invest now they are:

The capital gain of 17% due to the effect of the exchange rate, compared to the 3% that would be had if it were not for the pandemic.
The increase in value due to inflation that will be observed by economic fluctuations.
The dollar is worth 33% more, with the depreciation of the peso from 18 to 24. This is a great opportunity for investments in this currency.
Finally, you should know that the real estate market shows constant growth, so the pandemic will not generate great losses. According to the Mexican Association of Real Estate Professionals, the growth projection for the real estate sector in our country in 2020 was 4%.
Although this growth will be a little slower than expected, the AMPI indicates that it will be consolidated during the last quarter of the year, forecasting accelerated growth for the beginning of 2021.

Conclusion

The global COVID-19 pandemic arrived unexpectedly and caused drastic changes in our lifestyle. However, we can use this time to reflect and conduct an in-depth analysis of our financial behaviors, establishing an action plan that seeks our well-being in these uncertain times.
The investment is a unique opportunity to guarantee our financial stability, while continuing to obtain returns. Particularly when it comes to investing in real estate, the stability experienced when investing is unmatched and the earnings received make it possible to avoid the negative effects of inflation, generating an increase in value above it.
The current situation makes it possible to carry out much more profitable real estate investments, thanks to the increase in the capital gain of the properties and to the fact that the prices of these will rise as a result of inflation, offering a greater value to the owners.

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