Most of us want to achieve our financial independence and one condition for that is not to save money but to invest it. Unfortunately, in general at least in the Latin American region, there is a lack of instruments to channel those savings into earnings and, combined with political instability and unstable regulatory environments, that doesn’t create an easily accessible savings and investment environment.
A report published by the Inter-American Development Bank (IDB) shows that at the private level, LatAm is a region with a very low saving rate compared to other regions, less than 20 % compared to 35% in high growth regions. Only 16% of savers do it through the financial system, compared to 50% in advanced countries.
However not everything is lost. Thanks to globalization, developments in communications and internet and technology, there are now a lot of opportunities to access not only global markets and investment instruments, but education too. A few years ago it was impossible to envisage this kind of shift and it is now helping people to improve their personal finances and lead to a culture of saving and investing.
Thanks to this Tech revolution, there are now many ways to turn your savings into earnings and enjoy great returns, with real estate being one of the easiest ways to do this is.
We all want to experience great level of returns on our savings. Let’s face it, if all we wanted to do was just to save our money we would stash it under our mattress, wouldn’t we? Or put it at the back of our wardrobe and let it stay there until we need it. However, as we become more demanding and realise that there are other options available to us we need to decide what is the best way for us to make our money work.
One of the best routes that is becoming available to individuals today is through online real estate investing. Throughout history so many wealthy people have always turned to real-estate to experience incredible earnings over their savings; now anyone can take advantage of this.
In a nutshell, there are effectively two main ways in which you can make money from real estate investments:
1. The rental income received by leasing out or renting out your property to tenants.
2. A natural increase in the value of the property.
Of course, as with many things in life, there are more complex ways in which you can make money from real estate however the two proposed options are probably the most common ones for earning a passive income via real estate investment.
Put simply, if you own any piece of real estate be it a house, an office building or an apartment building, you can rent the place out to tenants. Whilst this is the most efficient and easiest way to make money but it might not be as simple as it seems. Being a landlord does come with drawbacks such as dealing with maintenance issues, or unpaid rent. As a landlord, it will be your duty to fix those and when investing into real estate you need to be sure that you can manage these issues.
Even as a commercial property owner, you have to deal with the worry and stress that a business tenant may go bankrupt and stop paying you.
However, with the boom in fintech a number of alternatives, such as real estate crowdfunding, are emerging that remove these problems but still offer great real estate investment returns.
Historically the value of real estate investments has continued to grow, outperforming almost all other asset classes. However, global real estate collapses in 2007-2009 remind us that it is not as simple as just investing in real estate and making money. To make strong returns in real estate investing you are required to have market knowledge of the area you are investing in, an understanding of local market forces that will influence property prices and the confidence to be sure you are buying at a good price.
There are many ways to turn your savings into earnings and enjoy great returns but as stated above, one of the easiest ways to do this is through real estate.
The need for real estate will always be present; people will always need somewhere to live and it is an investment that has the potential for long-term gains as well as real-time earnings. with the rise of fintech and global real estate platforms such as Bricksave individuals have now greater access to real estate investments without the need for expertise and local knowledge. All of the complexity of real estate investing are taken care of by experienced professionals and you can sit back and watch your savings become earnings, beating inflation and in some of the worlds most secure currencies.
December 19, 2019
PODCAST: real estate crowdfunding, a profitable investment alternative.
Sofia Gancedo, COO of Bricksave, explains this new type of real estate investment in Brazil, which allows people to invest in finished properties in the US, Europe and Asia from …
Real Estate Crowdfunding: Bricksave the proptech startup for investors
Learn about Bricksave's real estate crowdfunding, invest online in properties around the world from USD 1,000 Find out more
5 real estate crowdfunding statistics for Latin American investors
Crowdfunding has boomed in recent years, and real estate is yet another industry being revolutionised by this democratic form of investment. For as little as $1,000, you can enjoy your …