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Do you have your investment strategy well defined?

Posted by Top Realtors Mexico on March 9, 2023
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In Real Estate, as in any type of investment, it is essential to define our objective in advance, that is, what we hope to achieve when investing in a property.

Of course, we are referring exclusively to people who expect to obtain a return and not to those who purchased a property for their own residential use.

Broadly speaking, we can say that there are two types of strategies that are usually used in real estate investments.

 

Patrimonial vs Speculative

 

When we talk about HERITAGE type investments, we are referring to buying a property with the purpose of “putting it to work” and generating income for us.

The most common is that it is through long-term rentals or vacation rentals that generate a flow of constant passive income.

On the other hand, when we refer to SPECULATIVE, we are talking about acquiring a property at a price below market value, in order to sell this property and generate a differential between the purchase and sale price: our profit.

Among others, there are two forms that are usually the most used in this type of strategy. Buy a home in poor condition, remodel it and sell it (commonly known as “fliping”) OR buy a pre-sale property and sell it before or after delivery, as these projects usually have a very attractive starting price and earn a very good gain. In Quintana Roo, in areas like Tulum, this pre-sale capital gain can be around 25/35% depending on the area and the type of project.

But we can even talk about a third strategy, which would be a combination of the two previous ones.

Whichever you choose, investing in Real Estate will always be a good decision.

Contacto us and we will gladly help you diagram the best investment strategy according to your objetives.

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