The uncertainty that invaded the world a year ago seems to have been largely cleared. Not only in the United Kingdom or the US, but also in Spain. After the elections in Catalonia and with many opportunities to invest profitably.
Investors face the new year with optimism. Thanks to a favorable scenario, both from the economic stability and from the opportunities opened by some markets. And real estate investment is a good example.
The international economy will grow by 3.6% in 2017, reaching 3.7% in 2018. A framework driven by various indicators. From the forecasts of companies to interest rates, which the European Central Bank will maintain around 0% in the next year.
Completing the panorama a few Bags that remain in maxima on both sides of the Atlantic. Both on the Nasdaq and the Dow Jones, as Frankfurt or Paris. A scenario that must finish clearing in Spain. And what better ally than the housing market?
A way to invest with ideal profitability for good strategists!
Doubts to clear and reforms to assume
The end of the political nervousness and the need to recover Catalan stability seem to reach a turning point.
After the elections of 21D, and with a backdrop characterized by the fall in investment, the break in tourism and the flight of thousands of companies, Catalonia is in the eye of the geopolitical hurricane.
Faced with this scenario of uncertainty, the other burning issue is the reform of pensions. What is the outlook for the new pension plans? How will public pensions become sustainable?
In the last twelve months, the profitability of pension plans has sparked more than one debate. Forcing to compare risks and profits to invest profitably.
Take risks and collect benefits
Faced with the situation of a year ago, with the Brexit, the victory of Donald Trump and the expectation of both French and German, the year 2018 begins with a clearer picture. Although the situation in Catalonia and the new Italian elections have yet to be resolved.
Currently, there are no risk factors that make people fear a derailment. But nervousness and attention to changes like the one that will happen in the US. After the tax form of Trump and its amount cut taxes to companies.
In this context, the business profit will be a boost for the stock markets. And annual growth forecasts of 7% in the US and 10% in Europe are already being handled. A profitability that will end up being transmitted to investors throughout 2018.
Close to the withdrawal of economic stimuli
European investors remain alert to any change in the European Central Bank’s strategy. Announced the end of the program for the purchase of bonds. This can cause the Euribor to rally in the second half of 2018. Repercuting on the 2019 rates.
Currently, with interest rates at historic lows, the investor must take risks and abandon defensive positions. Since the returns equal or higher than 1.5% are only in terms of more than 10 years.
Experts agree that the ECB will not raise rates throughout 2018. Taking into account the fall in inflation and interest rates, investment in the stock market gains positions. Offering dividends of up to 5% while bank deposits remain at 0% and bonds close to 1%.
The importance of planning investments
Given this scenario, the most important thing is to have an investment plan. Having clear the objective to achieve, the available time period and the risk that is willing to assume.
It is clear that the more diversification in investments, and more types of assets, the lower the risk. But we must also take into account the date of maturities, which allows us to take advantage of good times and protect ourselves in bad times.
Among the most recommended sectors, technology plays a predominant role. With big projections for the next years. While the electric sector and telecommunications allow to ensure gains with more conservative positions. And financial companies take advantage of US increases in rates and the increase in consumption.
In this sense, and given the risk involved in investing directly in the stock market, the increase in the number of reits and their progressive specialization allow profitable investment in a sector that continues to be renewed. Offering returns of 6% and 7% per annum.
Invest profitably in housing
Housing remains an excellent investment formula. Although times are changing and strategy takes over from impulsivity.
That need to invest in housing with a head is what Gonzalo Bernardos points out. Taking into account two fundamental reasons.
On the one hand, the new real estate cycle is still in an initial stage. Aspect that allows revaluations above 50% (returns of 8.5% per year) if it is correct with the place and the characteristics of the property. In front of prices below 25% for those who do not know how to choose.
In addition to the sale, Bernardo also points to the profitability of housing leases. The demand for residential rental in towns that exceed 10,000 inhabitants will continue to grow. Exceeding gross yields of 4.75%.
Allowing benefits “as long as you do not resort to instinct and forget logic“. The advice: look for well-located assets, in medium-sized municipalities or in the metropolitan area of ??large cities. Fleeing from those who became excessively expensive in the last two years. Some assets that can earn us a minimum profit of 5.5% on their rent.
