There is caution to invest in real estate in the United States, but the opportunities continue: LCR Capital Partners

The real-estate market around the world was a vehicle to safeguard heritage during the time of the health emergency; However, currently the scenario is different, with high inflation and rises in interest rates, which generates doubts for the Mexican investor about the options available in the market. international real estate market.

According to Víctor Espinosa, senior director of the investment consultancy LCR Capital Partners, the Mexican investor with high net worth, that is to say, who has a liquid capital of close to 1 million dollars to invest, knows about this type of scenario, so his experience makes him look for options in real estate safer and even above profitability.

“The Mexican investor who has a minimum capital of 800,000 dollars is very experienced, he has been investing in private and public markets for a long time, both in Mexico and abroad. He is generally an entrepreneurial investor who has spent more than 20 or 30 years exercising his own business, he is monitoring his company’s treasury, plus his own patrimony and that of his second and third generations,” said Espinosa.

For the partner of LCR Capital Partners, the current scenario could put a brake on the investments of Mexicans in the international market of real estate; however, this would only be to have a better analysis of the opportunities that are triggered in this scenario, especially in the United States market.

“I am seeing a pause in the market, clients are doing more diligence on investments and the investment opportunity… but 2023 is going to present opportunities,” Espinosa said.

The specialist exemplified that if a person has a real estate asset In the United States, such as a house, which you are looking to sell to obtain immediate liquidity, this will be complicated in the short term due to the excess inventory that exists in the neighboring country to the north.

The boom for Mexicans

In recent years, the real estate In the United States, they have always been well regarded by Mexican investors, due not only to investment security, but also to other benefits such as obtaining immigration residence in that country.

In this context, according to the National Association of Realtors (NAR) of the United States, Mexicans have positioned themselves as the main foreign buyers of living place in that country, only below Canadians.

According to the NAR, from April 2021 to March 2022, Mexicans carried out operations for 2.9 billion dollars in that country to buy living place. This figure stands out, considering that 57% of foreign buyers purchased a property in said period for vacation or rental purposes.

Espinosa explained that, although it is necessary to define the investment strategy of each investor, for potential Mexican buyers there are interesting opportunities in the Florida market.

“Florida interests the foreigner enough to have a vacation homebecause it develops a portfolio of assets of real estate that can be rented during the year, then they can participate by being owners and receiving income from tenants,” said the specialist.

Likewise, he pointed out that, according to the investment strategy, the returns can be interesting from 0.5 to 2% per year, in a horizon of up to seven years.