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  • Writer's pictureAna Castañeda

Why Invest In Real Estate In Times Of Covid-19

Updated: Mar 31, 2022

In this time of uncertainty, the purchase of properties will bring several advantages, a substantial increase in surplus value is one of them, here I tell you about some of them:

  1. It represents less risk than some financial or stock market instruments.

  2. Protects the value of money against volatile currencies.

  3. It provides extra income when it is leased.

  4. It maintains stability in its price.

  5. It increases its value over time.

  6. Generates financial security for the retirement stage.

  7. Goodwill continues to generate returns.

  8. It offers tax benefits.

  9. Let's you deduct mortgage interest.

  10. There are competitive financing alternatives.

A good tactic to invest with low risk is to invest in architecture, that is, to acquire real estate, since it offers a high level of security and financial benefits, especially for those seeking medium and long-term returns.


It is well known that a property does not depreciate, "even in critical situations, such as the real estate crisis in the United States that arose in 2006, recovers its value."


A likely trend in this sector is that prices will continue to be steady in the coming months, and then increase around 9% in 2021.


In addition, the properties that are purchased now will have a capital gain of 17% due to the effect of the currency exchange rate, which would be 3% if the pandemic had not occurred, says Jorge Martínez Páez, director of Operations at Internacional de Inversiones (IDEI). (1)

For his part, Jesús Orozco, CEO of Tinsa México, indicates that "brick has always been one of the best havens for investors, and in times of crisis it offers many business opportunities. (2)


For example, the surge in electronic commerce in the face of this pandemic has caused some internet sales corporations to rent extra warehouses to store merchandise. Likewise, given the high requirement of hospitals to care for people infected with SARS-CoV-2, some convention centers, and even hotels have been set up to provide medical care.


And what does Architecture have to do with all this?:


If you are interested in making a property as an investment, the ideal way is to build it so that the cost is lower, I recommend you approach an Architect to discuss your concerns and ideas, we can help you develop it, to find the best option of land and decrease the time window for its conception, time is a very important factor to consider.


If what you want is to buy a property for personal use, be it your first house or a place of vacation retreat and you want to get rid of the rental expenses, or you simply have the resources; right now you could find more favorable conditions for the purchase and negotiations, in this case, consult with a certified real estate agent. Once you have located the property you want to acquire, my recommendation is that before buying, contact your Architect to review the current state of the property, advise you and estimate the costs of either remodeling or necessary improvements. So you can contemplate the real expense before the acquisition.


For those who choose to use a mortgage, it is recommended that they have at least 20 to 30% of the value of the house or apartment saved, in addition to the deed expenses.


Foreign buyers who want to purchase a property in Mexico have an excellent opportunity. The depreciation of the peso from 18 to 24 means that the dollar is worth 33% more.


Right now is when it suits them because the price has not been updated when the value of the property is going to be updated over time. It is a way to protect money against the volatility of the peso.

(1) Reference: www.obras.expansion.mx

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