Bank savings provide immediate liquidity, allowing access to funds when needed.
Investing in properties offers up to a 20% ROI in the first two years.
In Mexico, financial culture remains a challenge, yet 40% of the adult population manages their expenses, according to the National Commission for the Protection and Defense of Financial Services Users (Condusef). However, a dilemma persists among citizens on whether to become investors or trust a banking institution to safeguard their money, especially when it comes to additional sources of income such as compensation, retirement, inheritance, or severance.
It is important to highlight that, nationally, nearly 25 million people, corresponding to 35.5% of adults, save through a financial institution. According to data analyst YouGov Profiles, at the beginning of 2024, 58.1% of them were seeking ways to increase their income. While both approaches have advantages and disadvantages, the choice between them may depend on various personal or market factors.
Saving, for its part, is one of the safest ways to store resources, as deposits are protected by government insurance up to certain limits, providing peace of mind. Furthermore, they offer immediate liquidity, allowing access to funds when needed.
On the other hand, although business ventures carry the risk of loss, this option stands out for the potential of higher profits and continuous growth, which reached 15% in 2023, with an average of four units per brand, according to the Mexican Franchise Association (AMF). This, coupled with the long-term financial stability it offers, is why we present some reasons why investing in a franchise is better than keeping capital in a bank:
• Currency value vs. properties: When it comes to our wealth, the most important thing is ensuring it doesn’t lose its value. While bank savings can be negatively affected by inflation, diminishing the purchasing power of money, real estate tends to benefit by increasing its market value.
• Opportunity to have other businesses: One of the advantages of acquiring a real estate company license is that you don’t need to dedicate all your time to it. While you manage the administration, someone else can handle the operation, allowing you to have another job or business venture.
• Diversification of earnings: Remember, a real estate business is not just limited to house sales; it also offers rental services, advice, legal procedures, renovations, and more. Thanks to this, your income can vary in both amount and frequency, but it will always be in motion, unlike a sum of money kept in a savings account.
• Higher return on investment: Many people who choose to save in a bank instead of managing their savings independently are aware that interest rates can increase their money, by up to 11%. However, by acquiring a real estate license, you can achieve a 20% ROI in the first two years of operation.
• Achievement of long-term goals: As mentioned earlier, there are determining factors when it comes to capital, mainly time and inflation. These factors make investing the most viable solution when our goals are long-term, for example, when thinking about retirement, as it provides better stability. Additionally, the franchise sector in the country is expected to continue rising by 10% annually and close the year with around an 8% growth, offering certainty in projections.
• Guarantee for loans: Whether we’re considering financing a plan or building wealth for our families, the ideal scenario is to multiply our money. However, other advantages can also be leveraged along the way, such as improving your chances of obtaining a loan from any institution, as your business serves as collateral.
Depositing your income in a bank or a real estate concession plan are both useful alternatives if you’re looking for growth. However, thinking long-term, investing is more profitable. Before deciding on either option, define your goals and the timeframe in which you hope to achieve them. This will help you choose what’s best for you. If needed, you can also seek advice from a specialist.
Guía rápida para Comprar Inmuebles en CDMX
Coldwell Banker México: coldwellbanker.com.mx
https://business.yougov.com/es/content/48529-mexico-ha-cambiado-acercamiento-inversion-2024
https://cc.org.mx/perspectivas-del-sector-franquiciatario-para-el-2024/
https://edifica.com.pe/blog/razones-invertir-propiedades/
https://www.scotiabankcolpatria.com/educacion-financiera/finanzas-personales/ahorrar-o-invertir
https://www.linkedin.com/pulse/invertir-en-bienes-ra%C3%ADces-vs-tener-el-dinero-un