Lets Talk About Numbers
If you have reached this section, take your time to read it in its entirety, it’s worth investing the time. Here we share with you the knowledge we have acquired and the data that works for us and our clients.
The best investment is in knowledge 💡
Let's start with a topic that we should all be familiar with but many times we don't give it much importance when it plays an important role in our lives: INFLATION
What is inflation?
In simple terms, it is the increase in the price of products and services, resulting in the loss of value of money. Your money loses value since what you earn is less and less for you to continue paying for the products and services in your daily life.
The increase in the prices of products and services is not equal to the increase in your salary, that is why your money loses value year after year.
Example
If this year you save up $100,000 dollars and save it, for the following year that same $100,000 dollars, although it is still the same figure, is worth less, this is because you can no longer buy the same amount of products as last year due to the increase in these .
What is the percentage of inflation in the world?
On average, inflation around the world is 7%. There are some countries that have a better economy than others, making inflation less, but there are also other countries that, due to many factors, suffer large percentages of inflation.
Countries and inflation:
United States 8%
Canada 6%
Mexico 7%
France 5.2%
Spain 9.8%
Columbia 8.5%
Argentina 50.9%
So what should we do to avoid being victims of inflation?
The solution against inflation is to INVEST. Invest your money so that it generates more money and is worth more. It is by investing your money that will make it generate more value instead of losing value.
This leads us to the following:
How should I invest my money so that it stops losing value?
You can invest in real estate, profitable businesses, Bitcoin or the stock market.
When choosing where to invest we have to analyze several things
Risks (Every investment has risks)
Knowledge (Required amount of knowledge)
Investment stability
Time required (How much time do you need to dedicate?)
Today social networks bombard us with information about investing in crypto and the stock market. It is a good investment option, but it is for people who are willing to dedicate a lot of time, study and above all are willing to take big risks since, as we all know, they can be unstable and volatile . To prevent your investment from going from green to red you need dedication, to do a lot of research and to keep yourself updated every day.
On the other hand, investing in real estate is one of the most stable and secure businesses of all time. If you know where to invest, the risks of a property losing value are almost zero. Investing in places where your property, in addition to the appreciation in capital gain year after year, can be used as a business (vacation rental) making your investment double its profits. One being its value that increases year after year and the other being the income generated month after month due to the income it creates in rentals.
Another factor when investing in real estate that hardly anyone talks about is the speed of the sale. Let's take the example of buying a house, but you don't want to rent it for whatever reason. So let's focus only on the added value that this property will generate for you. It is a fact that if you invest in a property its value will increase year after year, with just this we have achieved the objective of combating inflation, but here comes the factor that not many take into account and in the future they realize bumpers when they are presented with this situation.
How fast are you going to sell your property tomorrow if you want to monetize that investment to reinvest it elsewhere or because you have a need to cover?
Although your property is already worth more, it does not mean that you are going to sell it at a higher price, what happens in those towns or cities where you put a property up for sale and it takes months and even years finding a buyer, in the end you end up wasting it or keeping it because you were not able to sell for what you expected.
It’s not just about buying a property, we also have to analyze where we are going to buy it, what is the demand in the area, what is the growth of that area, areas of interest, future projects that will give more value to your property, among other aspects.
If you want to know more about this topic, contact us and ask us about the advantages of each place in the Riviera Maya, as well as:
Which place and which project has the best capital gain?
Which area is most in demand?
Which area is the most stable?
Where is it best to buy and to sell?
Where is it best to buy and to rent?
Where is the best place to buy to live?
Which part is quietest?
Where are the best beaches?
Which zone has the most convenient location?
Why invest in the Riviera Maya?
We will leave you the following statistical numbers extracted from official and government pages that speak for themselves
Annual average capital gain
Buying in a presale the first year will generate between 15% and 30% increase in value
8% - 10% increase in value year over year
Hotel occupancy (Hotels and Rooms on Airbnb) annual average
56% - 82%
Taxes
0.003% Annual Tax Payment
ROI
8% - 13%
Now that we have some data, we should know that there are variations depending on which part of the Riviera Maya we are talking about, since it is made up of 6 municipalities and more than 210 kilometres of coastal area. It is not the same to rent an apartment in Tulum than it is in Puerto Morelos, even if it is still in the Riviera Maya.
We are trained to help you analyze the MANY different property options that exist in the Riviera Maya. We know each area, as well as what its strengths are, what its weaknesses are and also something very important is that we know how this market and business works. From looking for a property up until the moment of acquiring it and operating it, whether a vacation rental, presale, resale, renovation or the construction of your own home - we can help you through every stage of the process.
We characterize ourselves as a team committed to our work and having clients who ultimately become our friends. We are going to guide you, teach you, help you and above all we are going to accompany you through the whole process so that your investment is the smartest possible.
We fully understand that you do not have to choose to work with us, but we want to make it clear that we are happy to share the knowledge we have acquired over these years of experience. The most pleasant thing for us is to know that we helped in some way (Clear doubts, understand how it works, know how to choose, analyze, etc.)
Ask us all the doubts you have and we will gladly solve them together.Always remember that:
"He who asks is not a fool, he who does not ask is a fool"
"The one who asks is not wrong"