In a scenario in which the dollar exceeded the barrier of $1,000 due to the drop in the price of copper, added to the political-economic uncertainty and a scenario of high volatility at a global level, with rising rates and inflation, the consulting firm Chilean investment firm, Gray Capital, delivered a series of recommendations to its partner and business manager, Catherine Ruz.
Under this dimension and when asked if it is convenient or not to invest in the real estate market at the moment, Gray Capital, points out:
- The real estate area, generally, always generates good options. One can have one foot and do that, through mortgage loans, even when rates are high today, a capital gain is generated over time. And, today, you can find leases in UF that can fairly weigh the issue of inflation.
- In the United States, there are also properties that can be leased, even with guaranteed leases, which also give you a certainty of what will happen in one, two or three years, even with the repurchase that could be had.
- For the smallest investor, the individual, it is still a good option to invest, since it generates future income, then, leases can be generated in UF and guaranteed. The sale is very slow. Real estate agencies are willing to be your tenants, for example, for five years and in UF. Neither the rent nor the value of the property, which is always increasing, is devalued.
Financial investments, individual
The partner and commercial manager of Gray Capital, Catherine Ruz, also highlighted some key data regarding financial and individual investments. For example, “someone who is very conservative and who needs to be certain of their profitability, today you can find offers in banks for Term Deposits in UF, for one year, which are between 2% and 3% more UF Ruz said.
For this reason, it provides the following keys regarding individual investments:
- Those who want to invest in Mutual Funds, in Chile, hopefully they are correlated with the UF. There are some that have some banks and fund managers that have this type of assets. They allow us to weather inflation.
- If someone wants to invest in dollars -which is at an unbeatable price-, the expectations are not that it will go down, but rather that it will go up in accordance with the political uncertainty that we are experiencing in our country. It is a good option, being dollarized in the United States, I can buy a US treasury bond, which I can buy for two years, and which can give you a 2.6% return.
- For those who have a longer term, from three to five years, entering the financial market today is a very good time. Assets are hit hard. The whole market fell a lot during the first half of this year. Although there are risks of a recession, the financial assets that are so badly hit, in the next two or three years, are going to recover. Someone who enters thinking of an investment horizon of 3 to 5 years, it is a very good time to enter.
- Enter equities: there are companies around the world that are severely affected by their prices, that have good, very loyal consumers and that continue to sell despite the pandemic and in the face of a possible economic recession. There are many equity funds that are indexed to Quality companies, which, ultimately, are going to perform well in the coming months and years.
