The money allocated to real estate generally results in a wise long-term decision.

Uncertainty is inherent in human nature. All great civilizations, from the most remote such as the Egyptian, the Hindu, the Chinese, and in our continent, the Maya, had as their foundation astrological observation, their own calendar, and their respective zodiac to try to understand their reality and predict the future.

With this knowledge, they had the ability to forecast cyclical phenomena. Hitting the mark on what will happen in the future is truly impossible, but we can approximate it through a good analysis of events. The frequent question we are asked is whether it is time to invest in real estate today or whether we should wait for better conditions or greater opportunities to arise tomorrow.

In the aforementioned market cycles, and particularly in real estate, we all would like to buy when we are at the lowest point to benefit from the appreciation and demand that exists on the upswings and sell at the peak, that is, at the crest of the market cycle.

In our country, we have seen that since 2015, the placement of new housing has been declining, and a little later, also the placement of new automobiles, due to the rise in the cost of money, as they are very sensitive to the increase in interest rates.

In the second week of last January, for the fifth consecutive time, the Interbank Interest Rate decreased by 25 basis points, which produces better credit conditions and lower monthly payments charged by financial institutions to buy a house, an apartment, or any real estate.

The forecasts of financial experts are that interest rates will continue with that trend both in the United States and in our country. The above may be the factor that determines the end of the annual decline we have had for five years and the start of a new cycle of return to real growth in the placement of new housing in the present year.

I must mention that the federal government announced two weeks ago an investment of 200 billion pesos for the construction industry and one million housing actions to reactivate the country’s economy and stimulate employment.

This will necessarily have a multiplier effect on all sectors of the economy.

In conclusion, having one’s own heritage based on a sacrifice in the present can get us out of trouble in the future. It is time to start looking for real estate investment options today, to enjoy the income it produces for us tomorrow. Inheriting real estate to our loved ones will always bring benefits and the security that money has not been eroded by the loss of purchasing power as is the case with money deposited in savings accounts or bank investment accounts.

What is beyond debate in any country in the world is the statement attributed to Abraham Lincoln: “Land is the best investment that human ingenuity has conceived.”

Author: Jorge Paredes

Source: El Financiero