Investing in a fiber title can be cheaper than buying a coffee: BMV

The amounts to be able to invest in real estate investment trusts, known as fibras, are "extremely low", because depending on the company one of its titles can cost less than a coffee, commented Juan Manuel Olivo, director of promotion and issuers of the Grupo Bolsa Mexicana de Valores in a recent forum.

So a real estate fiber is a vehicle that allows access to a real estate investment from really affordable amounts, from 10, 30 or 30 pesos, added the manager.

Juan Manuel Olivo explained that, in general, in Mexico there is a preference to invest in “bricks and that we can live on our income”. In a survey they conducted, it was asked that if they had money available to invest in, what would they do? Most of the respondents answered that they would buy an apartment or a house.

In fact, when we buy an apartment we seek to earn money practically in two ways, Olivo said, one is through the income we can obtain and the other through the surplus value or value that the property accumulates over time.

Well, “investing in Fibras that are listed on the Stock Market is exactly the same thing”, he asserted.

Investing in a one-fiber title can be cheaper than buying a coffee: BMV

However, when asked what is best for me: buying an apartment and renting it out or investing in real estate? stressed: "Without our desire to say that one is better than another, because it would not be appropriate, we will have to review the characteristics of the properties and understand where they are being rented and so on, there are some generalities to consider such as the amounts of investment, diversification and operational risks, as well as liquidity (the ease of selling the property or a title) and taxes”, Olivo explained.

One of the main advantages, said Juan Manuel Olivo, is that the real estate fibers are very well managed.

In addition, there are fibers listed on the Stock Exchange that have more than 100, 200, 300 real estate, therefore, the investment is diversified and a third party manages the property, so there will be no need to worry about keeping it in good condition an apartment, collect rents each month, draw up contracts, among other aspects, he added.

Investors of these real estate trusts receive a periodic distribution, generally monthly or quarterly depending on the company or issuer, as a product of the income that they receive from leasing their properties, but they also obtain a return for the increase in the stock prices as time passes.

Fibras list their titles or real estate trust stock certificates (CBFI) on the Stock Market, these are similar to the shares of a company that is traded on the market, however, the investment is made through a house Stock market regulated by the National Banking and Securities Commission (CNBV).

These financial investment vehicles are practically companies that are primarily dedicated to developing, investing, acquiring, operating, managing and renting various types of real estate such as shopping centers, parks, warehouses and industrial warehouses, as well as educational establishments, hotels, buildings offices, among other kinds of properties.

For example, some real estate owned by the fibras are Torre Mayor, Reforma 222, Torre Virreyes, Plaza Universidad, Parque Delta, Parque Las Antenas, some hotels that operate under brands such as Fiesta Americana, Live Aqua, Marriot, Fiesta Inn, among hundreds of other properties.

In the Stock Market there are 16 fibers listed, here the list according to the year in which they were listed.