Specialists agree on a real scenario and provide fundamental recommendations to take into account before investing.

All the forecasts of public and private institutions for 2019 that has just begun agree that it will be a good year for the real estate industry and that the favorable conditions will be maintained for people who want to invest in the sector.

Considering that the Central Bank agreed to maintain the interest rate at 2.75% during 2019, the Association of Real Estate Developers (ADI) forecast the growth of homes by 10% -which involve transactions for 120 million UF per year- arguing economic development, low inflation and long-term interest rates, as the main reasons.

Along with these figures, the ADI delivered a critical data for real estate investors: the positive balance concerning the increase of the surplus value of a real estate in the long term, a factor that further reinforces the convenience of investing in the sector.

This favorable scenario for real estate investment also leads to the need to evaluate more options due to the higher supply. Therefore, specialists have mentioned three recommendations for the real estate investor, which go beyond the traditional analysis of medium and long term profitability or goodwill.

1 : Diversify The Investment : As is already known by specialized media regarding the projections of the local industry, real estate investment in 2020 will exceed the mining business; this translates into the construction of almost 122 thousand homes, commercial works, hotels, and offices, among others.

Therefore it is recommended to diversify the investment since the great majority of these projects should involve the construction of houses and apartments; it is essential to evaluate the great offer that there will be.

2 : Finance Through Mortgage Loans : The national bank offers the possibility of financing between 80% and 90% of a property, as well as the opportunity to agree on the initial foot (which goes from 10% of the total value of the property up) in installments or pay by card of credit.

However, the most significant advance this year is the recently approved portability of mortgage loans, allowing to reduce by half or even more the current terms, as well as reduce the number of procedures and associated costs, and introduce greater competition to the market.

This is fundamental when it comes to financing new investments or real estate projects.

3 : Take Advantage Of Good Prices : Associated with the country’s monetary policy, the phenomenon of low inflation that we are experiencing also affects the purchase of properties. According to the Central Bank, this figure would not exceed 3% this year. This is why it is advisable to take advantage of the opportunity when the general values ​​fall to buy properties.

In summary, deciding to invest is not something that should be done lightly because we talk about the possibility of obtaining an excellent long-term profitability. Therefore we must consider the projections of this 2019, where everything seems to be very good for real estate investment.…