In Argentina, To collect a periodic incomeit is normal to think about buying a real estate property and put it for rent. However, the bag allows building a portfolio of corporate bondsthat also generates a constant flow. Now, What option is more convenient?
It should be noted that corporate bonds, also known as Negotiable Obligations (ON)they are financial assets that represent debt of companies, generally of good credit quality. Meanwhile, the properties can be departments, duplex, houses, premises or garages.
The great advantage of bonds, liquidity
According to the financial consultant Mariano Pantanettithe main attraction of the ON in front of the properties is their liquiditygiven that They operate day after day in the capital market.
“Investment in real estate is highly illegid. You can be to perform the operation and to get out of the operation one month, two meces, six months or ten years. And the bond settlement is much faster,” he said.
On the other hand, corporate bonds have a Very low entry minimumespecially compared to an apartment or house to place for rent.
“The great benefit is the divisibility they have … Today, to buy a property, amounts that range from US $ 30,000, US $ 40,000, US $ 50,000 or more,” said the financial advisor Arian Chiarandon. “And people who have over $ 10,000 can quietly access a negotiable obligation,” he added.
Complexity and revaluation
In addition, the properties are extremely complex to operateboth for having to witness a scribe for purchase and for administrative management and maintenance they drag.
Meanwhile, the profitability for renting a property is much lower than that of a similar negotiable obligations portfolio. While the first strategy pays a 5% annualat best, the second can generate a performance of approximately 8%.
In any case, despite the cons of real estate, it must be taken into account that they enjoy a clear advantage over bonds: they can be considerably appreciated with the passage of time.
“The great advantage of investing in a property is that profitability rose greatly and there could also be a possible assessment of it, since prices still did not grow as they would seem to rise,” he said Ariel ChampanierExecutive Director of Remax Argentina.
“It is a good that can eventually give you a good income and a future assessment. With which, in that way, you also compensate for the eventual inflation in dollars. Because if you invest in a financial obligation, but tomorrow there is a devaluation, your whole gain is going in the devaluation, which does not happen to you with the property. If there is a devaluation, the property does not lower the executive.”
Source: Ambito
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