How to Invest in Real Estate in Times of Crisis

Real Estate Times Of Crisis

It is always a good time to invest in real estate.

Acquiring a property is a safe bet, since the money you invest far from decreasing increases, and even more if it is an area with a lot of tourism and constant growth.

However, it is normal that there is some uncertainty when we go through a time of crisis, since what we want is that our money is always safe. The good news is that investing in real estate in times of crisis is a good option for many reasons.

That is why in this article we will tell you those reasons why you should invest right now, in times of crisis due to COVID-19.

Investing in times of crisis

If you have read our articles on investing in real estate, such as tips to invest in real estate and not die trying, then you know that this type of investment is a very safe way to see profits in the future, and you should also know how to do it correctly.

But is it really a good idea to acquire a property in times of crisis?

At first it may seem like it is very risky, but the truth could not be further from the truth. Since, investing in real estate is much safer than other types of investment such as the stock market.

To understand this a little more we first have to look at a more general picture.

A perfect example of a crisis is what we are currently experiencing with the COVID-19 pandemic, which has caused a strike in many aspects of our society.

COVID-19, or also called coronavirus, has caused great uncertainty around the world. The main concern is towards people’s health and that is why many countries have taken adequate measures to face the coronavirus pandemic.

And it is not for less, because health issues must be taken very seriously, and more so when it comes to a pandemic.

However, in the field of business there are also certain questions and concerns about it.

COVID-19 in a short time has caused the devaluation of several currencies, has caused many businesses to lower their sales, and has put many contingency plans in place.

In fact, there was a stock market crash just the day the World Health Organization (WHO) announced that COVID-19 had become a pandemic.

That is why it is not surprising that investors and entrepreneurs are concerned about the losses that this could generate.

If we look back a few months, it is undeniable that our way of life has been modified to a lesser or greater extent by the coronavirus pandemic. Now more than ever you should play it safe when it comes to investing.

And as you have to imagine, the safe bet is real estate investment. Investing in real estate is a way to protect yourself from inflation in times of economic crisis.

But what is the difference with other types of investment? What makes it so safe?

Let’s look at the case of the stock market. Many expert economists have analyzed the situation and opinion is divided into two extremes: in taking precautions and in betting on cheap stocks.

In the latter case, it refers to the fact that we can find very cheap stocks and that it is a good opportunity to buy them and then make a profit when the crisis ends.

The problem that this entails is that even if you buy shares at a low price, nothing ensures that you will get your money back. In fact, if you do not analyze the situation of said company well, it may be that at a certain time it will close and its shares will no longer be worth what you expected.

That is why to enter this field of stock market investment you have to have a lot of experience and knowledge. It takes a long time and it never really stops being a risk even if there is no crisis.

If you’re looking to invest wisely, the answer is to invest in real estate.

Why? Simple: because investing in real estate in times of crisis makes its value increase.

When there is inflation, the price of many products increases, causing many people to have less purchasing power.

It is not the same to have a car that will inevitably devalue no matter how well you take care of it, to a land that the more time passes, the more its value increases.

What if you are still going to buy the property? No problem, since many batches maintain their prices, and if they increase, they do so more slowly compared to consumer products.

In fact, many of the mortgage loans tend to lower their interest rates in situations like the ones we are experiencing, which allows you to buy at a much lower price than the original.

That is why it is time to invest now, since in this way you will protect your money from the inflation that will cause the crisis that the coronavirus has generated.

And in case you do not want to inhabit the property you just bought, you have the option of renting it and obtaining more immediate profits. If it is in an area with a lot of tourism, like Yucatan, it will be much better because you can rent it according to the prices of a tourist area. 

Taking into account all of the above we can see why investing in real estate in crisis is a good option. Since, you are not only going to protect your money, but you will have a heritage for the future and for your family.

What to have into consideration

A moment ago, and in our article Why invest in real estate ?, we emphasized that investing in real estate generates financial security, because in this way you protect your money from inflation; and that in fact, it is during the same inflation that real estate prices increase.

But good planning and research are necessary. That is why you must first take into account several things to be successful when buying real estate in times of crisis.

To begin, you must ask yourself what you want to invest in real estate for. If it is to protect your investment money, to move to a safe place, to rent it or to ensure your retirement; There are many options for which you would like to acquire the property.

Acquiring a property is an important decision, and therefore you must take into account both your needs and the opportunities that the market offers you.

You should know that acquiring a property is not a short-term investment, but a long-term one. And that’s why we say that you should invest as soon as possible, so that you can ensure the highest possible return on investment.

It is very important to be patient, because even if it takes a few years you know that it is a safe investment.

And are there ways to make a profit earlier?

Yes there are. Returning to the example that you want the property to rent it, if you analyze well the area and the level of tourism it has, it is most likely that you will obtain these profits immediately. And in this way, almost without realizing it, you will have recovered your investment.

Another very important thing to consider is capital gains. The more growth the area in which you want to invest has, the better.

A good example of areas with great added value are those that have a lot of tourism, or that have a lot of private investment. In the case of Playa del Carmen we have that it is a city that every year has more and more international and national visits.

And what happens when an area becomes a focus of international tourism? Properties increase in value; So if you buy a lot or apartment in Granada you are ensuring that for a couple of years its value is much higher, unlike other areas where there is almost no tourism and therefore there is less capital gain.

You should also take into account how accessible the property is and how many amenities it has.

Finally, one of the most important aspects is to choose well the real estate company with which you are going to deal. What is best for you is that they have a solid experience in the region, and that in addition to selling they dedicate themselves to building; in this way you will know that your investment will be on the right track in times of crisis.

So if you take into account everything we’ve mentioned above, you can successfully invest in real estate, even in times of the COVID-19 pandemic.

Where to invest in real estate?

Then you already know that you can invest in real estate safely, that you must plan and analyze what you need. But where are the best options? Which cities have the most benefits?

Nicaragua is a good option, since it is one of the safest countries in America and the world.

In this city we recommend purchasing a home that is located in the north, since it is one of the areas with the highest growth and that for this reason it has access to many services.

In the north of Nicaragua there are several of the largest, most beautiful and most visited squares in the city, at the same time that it is the safest area within a city that is already quite safe.

In short, Nicaragua is your best option to buy  properties in times of crisis.

‍Secure your future by investing in real estate 

If you have already read us before, you will know that we always say that investing in real estate is a way to secure your future.

Living in an earthly paradise, having a home in one of the safest cities in the world, having a beautiful place to retire, insuring your money from inflation, making long-term profits; There are many reasons why buying a property is a smart decision.

Taking safe steps is very important when it comes to investing. That is why we recommend that you analyze very well the opportunities that are emerging today, so that you can acquire a dream home and protect your money.

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