Real estate investment in Mexico would increase with rent pool scheme
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Loading... - Antar Bennani
- 05 Jul 2022
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In the Mexican real estate sector, a model that is attracting more and more attention is the rental pool , because by providing the opportunity for a greater number of people to invest in real estate, it allows them to enter this industry and generate returns without who have to buy a property in its entirety.
Karim Goudiaby , Founder and CEO of the digital real estate company NEXIMO and Brando Angulo , CEO of Brada Grupo Inmobiliario reached this conclusion during a broadcast of 'Real Estate Investments'.
With the income pool, investment in the real estate sector can be triggered, since the model, in addition to facilitating the path, reduces the amounts necessary to participate as an investor in the sector.
Angulo explained that many people cannot access the best areas of Guadalajara in real estate, since an apartment, a store or an office is worth 3 or 4 million pesos in a good location. "So the way you can lower that entry ticket is with the rental pool."
The specialist on the subject added in a statement that with the income pool there are no entry barriers for investment in the real estate sector. Above all, to aspire to participate in properties with great locations.
One of the advantages of this scheme is that performance is guaranteed. With the scheme, profits are distributed proportionally among all those who invested.
“In the rental pool, whoever buys a ticket earns proportionally to what is rented. What does it mean? That, if the building or the square is rented at 80%, the proportional part is taken. So, in the rental pool you are always winning”, he commented.
Even in the case of commercial premises, the rent pool scheme is more attractive in terms of investment than a traditional model where one person owns the property in its entirety.
“If we did a financial run comparing the traditional scheme where you are a full owner, in the long run, in 10 or 15 years, I can assure you that in the income pool you will always have more money, because the income will be constant, and in the other there will be many months where you will not have income because there is no income, "said the expert.
Performance and legal certainty
Regarding the legal scheme under which the income pool moves, Angulo pointed out that this scheme is developed under the figure of trusts, so that when participating, an asset is acquired that can be sold over time.
Sometimes, the rental pool is confused with the timeshare, “but here, what is bought are fideicommissary rights , with which you are the owner, proprietor and have the right to collect the rent all your life. You can put this in your will, you can donate it, it will be in your estate forever. It is not temporary, you are the owner of the rental rights”.
Angulo specified that although by investing in this scheme a participation in the profits of the property is acquired, it cannot be used; In addition, the property is under the administration of an expert, who is in charge of making the necessary decisions to keep the operation of the property on track.
With regard to performance, with the income pool, investors not only earn from renting the property, but also through the capital gains it generates.
This model can offer up to 10% profitability , a higher percentage than what can be seen in a traditional housing rental scheme. Read More...
