When we talk about investments, a thorough analysis must be made of the country’s economic situation and its position in relation to the rest of the world, in relation to the world economy. From this, the most important decision can be made: where should the currencies be placed? Remember, success depends on the return on investment and there are investments in more volatile environments than others.
At present, we are in a situation of economic instability due to multiple factors. Only the UN has recently indicated that “there will be stagnation or decline in per capita income this year”. At the same time, there are risks throughout the year, such as diseases, the interest rates of countries, the so-called “trade wars” and changes in the value of the barrel of oil, among other variables that may start or intensify without prior notice.
Contrary to what many people think, investing in times of economic instability can generate a positive income. The key is to invest in the right place. While real estate investment and the stock market are the most popular options, there is one that carries more risk and another that has a higher rate of return.
In the context of Mexico, the Mexican Stock Exchange faces a new challenge: the incursion of the Institutional Stock Exchange, which features Nasdaq technology. To this new competition, the nature of the stock markets is added: the volatility of its intangible assets. This means that there can be falls in investments, without previous notice, and limit profits and even present significant losses.
In times of crisis, when there are problems between nations, the first place where instability is seen, and therefore the first place to suffer, is the stock market. In this sense, it is very different from the real estate industry, where the assets are tangible.
Compared to the stock markets, in the real estate market there is more security in investments. In other words, there are no abrupt changes in the value of the property in a negative sense and an annual return of up to 30% can be achieved, contrary to the stock market which presents 13%.
An important aspect to consider is the origin of the increase in value of a real estate property and a stock exchange share. In the case of the latter, its value is based on supply and demand, as well as on the stability of the company itself. While real estate depends, to a great extent, on the capital gain of the area, the characteristics of the property and the growth of the environment, as well as external factors such as the security of the city; therefore, it will not be affected during economic instability, in extreme cases, its value will increase due to inflation.
As it is possible to appreciate, there are investments that bring greater benefits in times of crisis, so it is important to analyze the panorama and distinguish the opportunities that generate greater profitability and return on investment at lower risk due to instability. Without a doubt, one of the best options is investing in real estate because of its stability and the possibility of perceiving an increase in value, which translates into greater capacity for future income.
Remember, approach experts in real estate development to find the best option in real estate investment, this with the intention of potentiating the transaction and find the real estate option that provides a greater return on capital. Don’t hesitate any longer and invest without fear!