Know the percentages that you can allocate when buying a house and how to invest in real estate by calculating your debt capacity.

When making the decision to buy a house or buy an apartment, it is important that you take into account your debt capacity, how you are going to finance the acquisition of an asset and, if you take out a mortgage loan or housing leasing, what percentage of your income you will allocate to the payment of the fees.

2 Keys on how to invest in real estate

At La Haus, we want to explain each of these aspects to you so that you can make a safe investment for yourself and your pocketbook.

Borrowing capacity

Before processing the mortgage loan or housing leasing, it is important that you know your debt capacity, so you will know how viable it is to know how to invest in real estate so that the loan is approved.

To do this, you must know how much your debts are, your individual or family income (that is, the resources of those who will request the loan). Divide your obligations by your income and multiply the result by 100 which will be the percentage of your debt capacity.

(Expenses / Income) x 100 =% of indebtedness capacity

The percentage allocated to debt

For the payment of debts, including mortgage loans and leasing, keep in mind that it is recommended not to allocate more than 40% of the total income.

To discover the ideal amount of debt, take your monthly income, subtract your fixed expenses and multiply the result by 0.40.

(Income – Expenses) x% allocated to debt = Amount allocated to debt

However, to facilitate the accounts, at La Haus we have a calculator that allows you to simulate the amount of the credit, how much you can pay per month and the monthly income, always taking into account the term of the credit.

As a result, you will know the value of the instalment that you must pay and the value of the credit that you can obtain. But, if you have questions, you can contact one of our real estate specialists for advice.

2. Forms of financing

There are several financing mechanisms created for the purchase of a home and depending on the term and your debt capacity the amount of financing may vary. In general, entities can finance up to 90% of the value of the property and you can choose to apply for a mortgage loan or a housing lease.

Make your accounts, process the loan of your choice, and do not forget to check the interest rate in different entities to choose the best one so that you know the correct way to invest in real estate. Remember that at La Haus you shop at your own pace.

  • Infonavit assigns interest rate according to your salary

4 Options for how to invest in real estate

1. Buy to rent

One of the main reasons that Mexicans have for how to invest in real estate to buy a home is to put it on rent since it generates a fixed monthly payment at the same time that the property is valued.

If you decide to buy a property to rent it, there are several factors that you should take into account:

  • Location: the ideal is that you are looking for a central neighbourhood, close to all the services that your tenants may need such as shops, restaurants, gyms, schools, universities, among others.
  • Easy access: most people look for apartments that are well located, close to main roads and subway stations. For this reason, avoid buying a property in a place with little public transport offer and few access alternatives.
  • Type of property: we recommend buying an apartment, since they are much easier to rent compared to a house. A good idea is to look for a two-bedroom apartment, with parking and amenities.
  • Price: if you want to rent your apartment quickly and easily, you should buy one that is not very expensive, since there will be fewer tenants who can pay a high rent.

Remember that you should try to put aside your personal preference to buy a property that meets market demand.

2. Buy, remodel and sell

It is very common for properties that are several years old to sell at a lower price compared to modern ones. Therefore, an excellent idea is to buy an apartment or old house to make repairs, give it modern finishes and finally sell it for a much higher value.

This is a great option for you as long as you have enough money to purchase the property and do all the repairs. Also, you should bear in mind that the adjustments are going to take time, so if what you want is quick money, this may not be the best option for you.

If you are interested in acquiring a property in CDMX, we recommend you enter our home buying guide.

3. Buy in pre-sale to sell or rent

The best way to earn capital gains! When the developers market the apartments in pre-sale, you can buy yours on a “zero list”, at a launch price, much cheaper than if you buy it built.

Once the work is finished, the price of the apartments will have increased significantly. In addition, another of the great advantages of buying an apartment in pre-sale is that you will have ample time to pay the down payment until the property is delivered to you.

The important thing here is that you must have a lot of patience, since the property can take months or even years to be delivered.

4. Buy a bank auction to sell

Bank auction houses and apartments can be found between 30% and 50% of their real value. So if you want to earn extra money investing in real estate, a great option is to buy an auction and then sell it at a higher value.

It depends on you how to invest in real estate, if you want to make repairs to increase its price even more or if you decide to sell it as you bought it.

This is a great option for you as long as you have enough money to purchase the property and do all the repairs. Also, you should bear in mind that the adjustments are going to take time, so if what you want is quick money, this may not be the best option for you.

If you are interested in acquiring a property, we recommend you enter our home buying guide to give you a better idea of ​​how to invest in real estate.