It is true we are in times of pandemic, it is also true that they are difficult times, but we already know that and now the question is how we change that premise. As the Roman philosopher Seneca said well, "There is no one less fortunate than the man whom adversity forgets, because he has no opportunity to test himself." Now, let's test the current times and see if it is worth investing in real estate right now.
Recently, an investment client from Mexico asked me for an analysis of possible options for departmental units in the range of $ 80,000- $ 100,000 and his expectations were a return on investment (ROI) of 6% per year, as I carried out the analysis, I found opportunities Interesting 2 to 3 bedroom apartments many with stable tenants paying rent on time. When I made the ROI calculation, I was pleasantly surprised, my calculations returned results of 7.5% to 9%, which is perfect based on the amount to invest for each unit and the minimum risk that an investment in real estate represents. It should be added that this is the price range that less property tax pays, at the current rate we would speak of 0.60% of the registered value. In general, the units in the price range that I mention have low maintenance fees, which benefits more when it comes to maximizing a return on investment.
In my opinion, if you have capital without generating income, you should invest it in this segment, it seems to me a smart move and more with current prices that have dropped considerably due to Covid.
I hope this experience that I share is helpful and if you are thinking about investing, take a look at the options in the price ranges that I have previously mentioned, you can get good returns vs. invest in other higher cost segments.
Other higher value segments can also generate good returns, but it would be under a different premise, if we talk about income from my perspective it is best to invest in the range of $ 80,000- $ 120,000.
Until next time!!