A study carried out by Eset, a company specializing in proactive threat detection, revealed that almost two-thirds of consumers around the world, that is, 62%, use some financial application or platform, which can range from those developed by banks to fintechs or trading tools.
One of the investment options is real estate, but these represent a difficulty due to the costs in initial installments, which is why Camilo Olarte, CEO of IRAIC REIT, the collaborative investment platform for innovative real estate projects, highlighted other barriers that prevent this population acquires a property, such as access to mortgage loans, very high interest rates or raising enough capital to pay the down payment.
“It is even commonly believed that buying a mortgaged apartment is a good investment, but due to the high interest rates, between 10 and 12%, its returns become very low in this sector. While rental projects such as hotels, coliving, coworking, among others, the returns of 24% per year, “says Olarte.
In that sense, these are the five tips that the firm gave to invest with little money in real estate during 2022.
Outline the objectives and plan the resources: before launching with the first investment, the interested party should think about their objectives and goals in the short, medium and long term. Know what you want in your future: a trip abroad, retire before 50, undertake a new project, support your family, among others. The fundamental thing is to have that clear purpose and it will be much easier for you to plan your resources.
Likewise, you must be realistic and analyze where the money for the first investment will come from, what actions you must take to get that extra money, how much you must save and how much you want to see profitability.
Training: education and reading are essential to make a good investment. In addition, the internet offers endless free information, which you can take advantage of to understand how to diversify your investment, take advantage of compound interest and understand how the fall of the markets in the stock markets can affect investments.
But social networks also play a fundamental role and, through influencers, people who viralize financial information of all kinds, we can learn ways to create investment strategies or manage personal finances, including analysis of the latest cryptocurrency or action in boom, products such as IRAIC funds, digital platforms in which to take the first steps as an investor or how to create an e-commerce business such as IRAIC TRADE.
Billionaire and philanthropist Warren Buffett, who has amassed a net worth of more than $100 billion, says he spends up to six hours every day reading books. In fact, he recommends “reading 500 pages a day” because he assures that this is how knowledge works: “It accumulates in the same way as compound interest.”
Maintain good financial habits: after having clear objectives and constantly studying, the next recommendation for the interested party is to maintain good financial habits, since they will allow them to pay their debts, save and even have an emergency fund in case they need it.
Analyze where the investment is going to be made: of course, the internet has a whole series of platforms where you can invest, but it is important to analyze and investigate these spaces.
In this aspect there are three things to highlight: the first is that “do not eat story” of high returns and easy money in short periods of time. If something offers to double your money in just months, try to understand what business can produce that kind of returns and if it is a real opportunity; The second thing is that you review the legal aspects of each investment (what will be your legal figure, how do you manage your capital, what or what happens if I need my money). Finally, study every detail, from who are the CEOs of the startup, what properties or projects do they offer to invest, where are they located and how will they generate returns. In IRAIC it is possible to invest in an easier and risk-free way, where the investor has the possibility of having access to all the information on his investment, growth opportunities and returns.
Bet on diversification: after having made a good first investment, it is time to diversify the portfolio. A good option is to review the market, analyzing it again and looking at different classes of assets and financial instruments.
“Invest in various sectors and different products that handle different risks. Normally, I manage 50% real estate, 30% stock or crypto, and 20% fixed income or index funds,” explained Olarte.