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Invest In Real Estate To Have A Better Retirement Fund Without Relying On The Pension System

Posted by Leanne Dudley on noviembre 28, 2019
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The social crisis in Chile has uncovered several issues.

One of them is the great discontent towards the AFPs (Chilean pension system), and the anguish from not knowing what funds one can retire with. A reality has been shown, in recent days, with cases of people who have worked all their lives but receive a very low pension; a pension that is near impossible to cover living costs.

Many seek alternatives such as the Voluntary Pension Savings (APV) or other types of investments. For example, purchasing and renting apartments. This is an option that has been adopted in recent years and presents a great opportunity to fund retirement. 

Felipe Caroca, a gastronomic entrepreneur, made his decision to invest
“Thanks to my job as an entrepreneur, I decided to invest and buy not 1 but 3 properties. I don’t know if in the future I will have the same strength as I have today to work. This is a way to secure my future,” he points out.

It also recommends that whoever has the opportunity to invest should do it now. Take advantage of this investment with the support of a consultant.
“My experience with Capitalizarme has been good. They helped me throughout the whole process, step by step. I arrived with the determination to buy and they recommended the most appropriate for my needs and wants”. 

The Moment Is TODAY

Real estate investment started timidly in 2013. Today, there is the option for professionals from more comfortable socioeconomic strata to invest.

There are several reasons why there is more interest in buying apartments to then lease, obtaining some kind of return on this investment.

As well as the main motivation of earning extra income from investing, low interest rates also act as an incentive. Furthermore, there is high demand for leases, minimising investment risks and a high surplus, in regions within Santiago.
Another reason is the distrus and dissatisfaction with the AFPs; reality shows that it doesn’t ensure a good pension for retirement. 

“Being responsible for my own future and not leaving in the hands of third parties is a great task for many Chileans; they want to live a comfortable life after retirement. Real estate investment is shown to be the safer option, if it is not devalued. I can sell properties at any time and convert it into cash.
In addition, in a time of uncertainty, people with savings don’t know what to do with it. So, the best alternative is to invest the savings than to leave them in the hands of another,” says Cristóbal Izquierdo, General Manager of Capitalize Me .

Another advantage is that those who have the funds to acquire a property immediately can take advantage of the mortgage rate.
The mortgage rate has reached a historical low at 1.7%. This creates an opportunity that must be seized before the rates rise. 

Izquierdo explains the advantages of investing in properties and their main benefits, which may make a difference when making this decision:

  • Use your credit rating to your favour:
    We can all use our credit rating to generate positive flows and returns.
  • Investment vs AFP:
    Investing in apartments can erase investment insecurities (AFP), as it is one of the safest forms of investment.
  • A history of surplus value where time runs in your favour:
    Value increases over time, unlike risky investments.
  • Low Risk:
    Historically, properties have had a low risk. Investment in apartments may be better than even life insurance.
  • Think about your future:
    Take care of your future (retirement) and your family by  increasing your assets.
  • Protection against Inflation:
    By investing in UF implies that the value of your investment may increase over time.

 

Disclaimer:
Translated from ‘Inversión inmobiliaria como una opción para tener una mejor jubilación y no depender de las AFP‘ 

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