In early March, the Mexican stock market fell more than 6%, the worst result for the domestic stock market in the last 11 years as a result of the COVID-19 pandemic. The stock market crash caused uncertainty among investors, who have been forced to diversify their investments in other safer instruments.
Although investing in the stock market is very profitable, it represents a very high risk, especially in times of crisis. An equally profitable but lower risk option is the real estate market, whose medium and long-term investments achieve high returns thanks to the capital gain of the properties.
The real estate market offers varied investment opportunities that can be adjusted to your budget and your goals. Like any business project, you must be clear about certain aspects before investing, such as the location of the real estate or the growth possibilities in one area. Acquiring a property could mean a possible source of extra income or a guarantee for your business.
During the first quarter of the year, the real estate sector had a rebound in growth, expected results replicate throughout 2020. Therefore, despite the effects of the COVID-19 are inevitable, a speedy recovery is expected in the market thanks to the positive trend at the beginning of the year.
One more reason to think about positive scenarios is the stability of the market, real estate investments can generate up to 30% profit just one year after their acquisition. Developments that meet current needs, can be an area of opportunity for any investor.
Both the stock market and the property market are profitable options, considering the volatility of the first and long-term performance of the second. Learn more about the advantages and disadvantages of these investment instruments, downloading the following infographic that SIMCA has prepared to help you make the best decision for your investments.