It is important to do this calmly and in advance. Also, know your real estate plan and consult key indicators.
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To the buy or rent a houseIt is important to compare before deciding between cities, areas or segments. This will help you make the right choice. Here’s everything you need to know about it.
Leonardo González, property analyst at Propiedades.com, explains when comparing:
- They know what the position of each zone is in relation to the market trend
- They improve the acquisition transaction
- You get the best possible home and pay a realistic price for it
How do I compare?
It is important to do this calmly and in advance. Also, know your real estate plan and consult key indicators. You use them to make decisions in a simple, technical and transparent manner.
It is also useful to compare two similar zones. For example Narvarte Y. Santa Maria la Ribera. In them, in addition to the houses of the middle segment:
- You have a central location in the metropolis
- Quality public services
- Wide range of properties for sale and rent
Narvarte or Santa María la Ribera, where to buy?
Not sure which part of the city is right for you? On that occasion, the real estate portal Propiedades.com carried out an exercise comparing Santa María la Ribera and Narvarte. Two dynamic areas of the metropolis.
The first thing you need to do when purchasing an apartment is to check the PtoR of the two. It is the real estate indicator that explains whether it is more convenient to rent or buy in a given area. The reference value for the CDMX is 25.
The data shows that right now is a good time to buy an apartment in Santa María la Ribera and Narvarte. The PtoR of the two zones is less than 25. The first is 13.5 and the second is 17.6.
If you want to do this in no time, the option is Narvarte. According to Price-to-Income (PtoI), you need 4.5 years of income in this area to buy a property if you spend 100 percent of your earnings. In Santa María la Ribera it will take 5.6 years.
If you prefer to buy as an investment
Are you planning to buy an apartment and then rent it? Then it is helpful to know the estimated profitability that you are getting. The ideal is to check the gross rent profitability (RBA) of both areas. In Santa María la Ribera it is 7.4 percent and in Narvarte 5.2 percent. This means that the first one is more profitable.
Another indicator to monitor when comparing is Time on Market (ToM). Use it to measure the estimated waiting time before closing a sales transaction. The Properties.com portal uses it to know how long an ad has been active on the platform.
The data shows that an apartment in Narvarte is currently selling faster as the ToM is 60.3 days. In Santa María la Ribera it is 78.8 days.
Take into account the capital gain
When comparing two zones, it is important to watch the capital gain. So you will know if:
- The cost-benefit ratio is high
- What you paid for your home was fair
- The value of your home has increased or decreased over the course of a year
Right now, Narvarte has better expectations as its December 2020 capital gain was 0.82 percent. While Santa María la Ribera saw a decrease of 10.5 percent.
When you know the cost, you can make a final decision. If you are looking to buy in the Santa María la Ribera area, you should know that there are six neighborhoods: The approximate prices for new and used apartments are:
On the other hand, Narvarte is made up of five colonies. Here are the prices of the new and used apartments:
Now you know how to choose between two dynamic locations in the metropolis and choose the area that best suits your context and needs. It’s time to take a pen and paper to create your budget. Also, consult your financial advisor for a successful purchase.