Stock Market VS Real Estate:When was the last time you stopped to carefully re-evaluate the performance of your investment portfolio, including physical assets such as real estate? Although it is important to sit down to do a typical annual review with your financial advisor to review the distribution of funds and stocks is important, it is also essential to talk about other types of diversification of your portfolio, including safe assets such as real estate.

The offer of financial products today is so wide that it is difficult to know what to invest to keep your money moving and thus generate profits that help you strengthen and protect your assets. Before allocating your capital to any sector, know the advantages and disadvantages that have some products against the acquisition of real estate.

Stability

This is one of the main aspects to consider when it comes to investing, as it will help you determine if your capital will remain safe or there are possibilities of putting your equity at risk.

In the case of equity markets , these are always at the expense of volatility, constant changes in the global economy and even the political situation in the country, so it is essential to have the necessary time and disposition to stay on top when is the best time to invest.

The situation in which the stock market is located is no longer the same as it was a while ago, so it is also important to locate the context under which you want to invest.

As for investment funds , although it is a less risky bet because they are less volatile, this same - which apparently is an advantage - leads to lower profitability. In addition, it is necessary to pay commissions to a manager to choose the most convenient actions, with the probability that he makes a bad choice.

On the other hand, savings accounts, although they are usually safe, are much more advisable to make investments with smaller amounts of money, in addition to many conditions that you must stick to so that it is a convenient option, since many financial institutions they need to keep a minimum amount in the account to avoid paying commissions and the generated profits are very low.

In contrast, investing in real estate is much safer and more convenient because this market is not affected by volatility; On the contrary, because it is determined by supply and demand, it is a much more solid and stable sector, which will hardly lose its value, since it depends on factors other than the drastic economic changes.

Analysis and follow-up

The real estate sector has the great advantage that, before investing in it, you have the opportunity to make an assessment of the property, see what conditions it is in, investigate the surplus value of the area where it is located, the infrastructure with the what development counts, etc.

This market offers you the possibility of comparing different options, asking different scenarios about the Return on Investment that you can obtain with one or another option and approaching real estate companies to guide you about investment properties; that is, it is a sector in which you can take the time you need to make an accurate decision. Of course, do not take too much time either, because the costs of the real estate sector increase due to the high demand there is .

Once you acquire the property, you will not have to worry about what happens in the sector, because it is known that of all the goods, the roots are the only ones that have an increase in their value thanks to the added value.

In the case of the stock market , it is more difficult to be certain of its value due to volatility; it is an unpredictable sector in which you must focus your attention and time to constantly monitor the stock market reports and thus, know when is the right time to invest . For the same reason, once you invest, you will enter a situation of constant risk of winning or losing.

Offer

Nowadays, the real estate market represents so many economic advantages that its offer has diversified to such an extent that it is an excellent option to make your investments and maximize your profits.

Some of the options that are found in the real estate offer, is the sale of commercial premises, space for offices, lots of investment and, of course, the acquisition of luxury apartments which, in turn, offers other possibilities such as the purchase of properties in presale .

Acquiring a pre-sale property is, without a doubt, a great opportunity to save and take advantage of the competitive prices that this type of project offers during its first stages of development, which will also ensure an important return in the medium term, and that by the time the project is finished in its entirety, the value of your property will be greater than what you paid for it during the first stages.

On the other hand, the stock market also has different products and investment opportunities, however, you do not have the guarantee that in a specific time these will be worth more due to the risk they represent for the factors -as already mentioned- that influence to determine its value.

Value added

Finding in what to invest depends largely on the advantages that the sector offers you. One of the main benefits of investing in real estate , is that you have control over your asset: you can remodel the property, make the changes you want and optimize maintenance costs to add value and therefore increase your Return on Investment .

You can even make these modifications from the beginning when it comes to a pre-sale project. Most of the developers offer you the possibility of intervening in the design, finishes and part of the furniture that make up the property, which will increase its commercial value.

Of course, this increase also depends on where the property is located, so it is also essential to investigate which are the areas with the greatest economic potential in Mexico ; otherwise your investment in real estate will not generate the returns you expect. If you buy a property in a city that is growing economically, your investment will pay off, even if the national or global economy is not at its best.

This value is definitely impossible to add when investing in the stock market; Once you allocate your capital to this sector, your earnings will depend on the economic and political situation at a national and global level, so you will have to be aware of what is happening around the world; This market is very changeable because it is quoted in real time.

Although it is a fact that, in order to know what to invest, it is essential to take into account the factors that determine the value of the assets, it is also essential that you be clear about your financial objectives and the amount with which you have to make this important investment. , in this way, you can define and have greater certainty about which sector suits you best according to your interests.

Why invest in real estate in the beginning?

If you did your homework, you probably would not answer "for appreciation." Although property must definitely be appreciated - which means that you are making money every year just to own it - simple growth by appreciation should not be the sole focus of most real estate investments, and it is better to leave this approach to land practice. banking - the purchase of land with the expectation that its value will increase with the passage of time, and then sold to other prospects who want to develop that space.

So unless that is your goal, look for income-generating properties that can provide you with a strong return on investment (ROI), such as a turnkey holiday residence or a property with different units that you can rent to obtain constant income.

Real Estate Investment Strategies That Work

In the last 10 years, smart investors have done very well, thanks to experienced real estate investment strategies, but regardless of the stage of the housing cycle, buyers can feel comfortable with the proven fact that It is possible to make money in real estate ... If you know where to look.

Most financial advisors will not tell you this because it does not benefit them to do so, but both the acquisition of physical real estate and land banking are two of the safest investments in the world, as long as the location is carefully selected and goes growing demand.

However, finding the right property can be a challenge, even for companies experienced in real estate investment, especially since the rental market has become very competitive in recent years. Ideally, look for a property you can really afford, with a consistent maintenance plan, which will provide a continuous return on investment (ROI) and solid rental income.

Why Vacation Homes for Rent?

Acquiring a vacation residence for turnkey- type rentals  (furnished and ready to live) in a prosperous popular destination is one of the best proven strategies to obtain a strong return on investment, since it offers all the ingredients for a successful real estate investment.

The best thing is that this acquisition will help you to diversify your investment portfolio and will provide you with a constant source of growth that is not linked to the whims of the traditional stock market, as well as an important hedge against inflation.

Just make sure to work with an experienced real estate investment firm that can help you understand all the rules of real estate acquisition.