Make your mortgage pay you


Analyze buy wait and sell this is the investment strategy if you want to buy a property and make a profit in the end. The yields will depend on the surplus value that the house or the land charges with the time. This will be defined by the location the access routes the improvements that the government makes the developments that arise around such as shopping malls schools and hospitals.


The idea is to acquire a loan of 15 or 20 years using your savings accumulated in your housing subaccount plus a bank loan. With your savings, you can pay notary fees or the down payment. The formula is to rent it so that you can cover the monthly payment of the mortgage. At the end of the debt cycle exercise the sale of the property suggests Leonardo Gonzalez.

A good tenant will be a potential candidate to acquire the property in the future. According to the index the annual rent obtained by a person to rent their apartment in Mexico City is 6.6% of the total of the property. As of October, the delegation recorded the highest profitability (8.5%), followed by (7.4%) and Miguel Hidalgo (7.1%).

Buying property in tourist areas is also a good option. For a house of 2.5 million pesos in Playa del Carmen, a mortgage of 21,000 monthly is paid. The rent of the house in holiday season can be up to 2,000 pesos per day. Getting foreign renters through Air bnb is a way to have it always inhabited, he recommends.

The mortgage debt you acquire should not exceed 60% of your income suggests Isabel Gonzalez patrimonial adviser. It is best to choose a fixed interest rate. Check the Total Annual Cost (CAT) because it includes the price of insurance and commissions. You should also ask if there are penalties for prepayments.

If you buy, the property before it is built you can run the risk of not concluding the project but also the advantage of buying it at a much cheaper price. Make sure he’s a trusted builder who is doing other projects at the same time and asks for his resume. Profitability is the time that will take you to recover the initial investment of the property. If you bought a department of 2 million pesos and the area has an average profitability of 10% per year, it will take 10 years to recover your investment.

You have two options while you wait for the property to increase in value live there or rent it and with that income pay part of the mortgage you have purchased. If your decision is to rent it, you should consider the cost of maintenance taxes and services for rent.