Financial Real Estate Crisis Offers Opportunities

In an adverse situation like we are seeing in the real estate market today, it is possible to buy property at cheaper prices, for those who like risk, and it also opens up the possibility of investing in the stock market.  The financial crisis and the current volatility of the real estate market, foreign exchange, and stock markets can represent investment opportunities.

Enrique Arias, director of analysis for the National Commission for the Protection and Defense of the Users of Financial Services (Condusef), said that in scenarios of volatility people can take actions in a cheap market, through income variable investment funds. However, he recommends checking the companies portfolios, namely that the money is invested in companies that do not report financial problems.Arias insists that we must maintain caution and not make hasty decisions.

For example, when the collapse in the shares of Comercial Mexicana " ...many people started to panick and sold their shares, and now the shares have begun to climb."As a result, he said, investors who sold when the shares were going down, lost on their investments. The same thing happened with the Banorte shares. "Some people were afraid and offered (sold) their share participation," he said.

Arias recalled that the return on equity investment is long term; ranging from one to 5 years.Enrique Arias said it is necessary to be aware of those entities that offer high returns above the average that the market offers.He also advises to deposit savings in well known banks.

In the case of real estate, he said that there is a high percentage of investments that present good opportunities in the market.

The banking industry and Sofoles (housing lenders) continue to offer loans with a total annual cost (APR) of between 12% and 14%, in the national mortgage loan market, and at a much lower APR for Non-residents (Americans and Canadians).  In addition, the mortgages have fixed rates and terms, so the risk is minimal.

But before agreeing to purchase a property, it is vital to calculate whether you can cope with the mortgage payments and to compare fees and commissions, as there are differences between brokers and lenders.

This article is provided by Enrique (Henry) Saldana - Mexico Mortgage Solutions (in Mexico)/Advanced Mortgage Inc. (in the USA) Cell: (984) 116-8528; Cell:  (998) 147-8936 This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   www.mxmortgagesolutions.com;
You may contact us with any questions you might have with regards to National and Non-Resident /Foreign National Mortgages.

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