Real Estate and Stock Market
In the last 20 years it has been shown that it is always possible to make money through real estate investment, if you know where to “target”. Investors who excel in the sector have generated profits in their portfolio, thanks to the diversity in their investment strategies.
And here is one of the great secrets well kept by financial advisers, who do not reveal this precisely because it does not benefit them. But we insist, both the acquisition of real estate and the acquisition of land, or the so-called ” Land Banking” strategy are two of the safest investments in the world.
This of course, only if the location is carefully selected and whose demand in the area is growing. Finding these conditions for “fertile investment” is a challenge, even for the most experienced companies in the field.
In addition to this, we must consider how highly competitive the rental market is today. The key lies in acquiring properties that you can afford, with an accessible maintenance plan, which allows a continuous return on investment and with it, solid rental income.
Investment in Real Estate through the Stock Market
Now, speaking in stock terms, the forms of investment in real estate are varied. It exists since the purchase of Real Estate Trusts and those of Investment and Real Estate, or the so-called FIBRA’s. The latter is a financial mechanism. Until reaching the traditional acquisition of private or vacation residences, retail locations, office or apartment space, and more.
The key to this is comparing a property’s “profit margin” against the “overall stock market.” This reflection is to generate a recommendation for your investment to be adequate in real estate that is available in the current market in UAE.
A good example is the beach destinations, with developments in a “condo-hotel” format.
We will review how traditional stock markets compete with real estate markets.
The Mirage of Investment and the Importance of Real Estate
At first glance, these investment tools may seem like better options, above Real Estate. But they are dangerous if you include all the variants already described. If we add inflation, the annual monetary flow of a real estate property, you will get a clearer reading.
We must not leave everything to the logic that leads us to conclude that only surplus value has the possibility of yields. This does not mean that we are not making money every year, just because we own the property.
This approach can be applied as essential, in terms of ” Land banking”, the purchase of land with the expectation that its value will increase over time, and then be sold to other prospects who want to develop that space.
So unless that’s your goal, look for income-generating properties that can provide you with a strong return on investment (ROI), such as a condo-hotel vacation residence or designed for the Airbnb format . They are properties with various units that you can put up for rent to obtain constant income.
Beach destinations, a plus in real estate investment
A turnkey type rental residence that is furnished and ready to use, in a prosperous popular destination is one of the best proven strategies to obtain a strong return on investment, since it offers all the ingredients for a successful real estate investment.
The Riviera Maya is an example of this. New developments in Playa del Carmen, Puerto Aventuras and Tulum are opening up a world of possibilities, offering a return on investment (ROI) of between eight and 14 percent.
There are also projects with plans designed under the “Property Without Worries, No Hassles” scheme. Concept for owners that ensures the best positioning for rent. Immediate maintenance actions. Punctual payments directly to your bank account and best of all, your own vacation home.
The best thing is that this acquisition will help you diversify your investment portfolio and will provide you with a constant source of growth that is not linked to the vagaries of the traditional stock market, as well as an important hedge fund against inflation.
A glimpse of opportunity
If we made a tour of the main streets and avenues of the developing points that we have mentioned, surely we would come across a coincident image. The offer of properties, sale of land, rent or sale of apartments, residences, among others.
This reinforces our starting point, since this offer, given how profitable it can be, becomes a monopoly of a few companies that know very well the dividends that can be obtained from real estate.
This without taking into account the internet sites specialized in the supply of real estate and land, where you can find a large number of available properties. We can average an offer greater than 30 thousand properties, residences or lots, for sale or rent, for each specialized search engine.
Compare and decide
If you have reached this point, you obviously have an interest in the topic addressed, and of which it only remains for you to make a decision about your investment, with the panorama we have described. Remember; Volatility of financial instruments, against properties well located in areas of increasing demand.
Finally we make a simple analogy. In anyone’s logic it is to understand that when buying a new car, its depreciation begins the moment a tire touches the pavement outside the agency where it was purchased.
A property, on the other hand, does not depreciate, but increases its value.