The construction sector is one of the most recommended to invest our savings during this year. There are several financial analysts who opt for this alternative as a formula to make capital profitable with greater guarantees of success. But, do you really know how to correctly channel this proposal into equities? Because you will have more than one idea to fulfill this wish during the next few years.
If there is something that characterizes this sector, it is because of its high diversification. Greater than in others that are present in equities. With a wide range of proposals, as you will be able to see from now on. So much from an aggressive position as if your investment approaches are rather conservative. Of course, at this time you cannot have doubts about the possibilities open to you to enter the construction sector. Through different strategies.
It is true that the most direct way to invest your money in construction is through the stock market. Through many and diverse companies. But also through another series of very unique proposals that can be equally effective. In some cases even by means of groundbreaking and innovative strategies for their originality. In any case, you will not be short of ideas to channel these kinds of operations. So common, on the other hand, to the tastes of small and medium investors.
Construction: stock markets
If you do not want to break your head, the first proposal you have to go to is the equity markets, and very specifically the stock market. You have in the national squares countless companies with this brick-based line of business. Although from different approaches. Not surprisingly, it is one of the most powerful of all the international stock exchanges. Of course you do not have to envy any of them. It is a fundamental sector of the Spanish economy. And that has regained strength after the economic recession starting in 2008.
Again the glances of all investors they have returned to the construction companies. In some cases even with great force. Where the buying positions are clearly imposing on the sellers. Even with very suggestive entry prices in some of the companies listed on the Spanish stock market. With a very attractive revaluation potential based on the risk that its shares present at the moment.
In addition, most construction companies offer a dividend yield around 5%. As an added element to raise interest in your purchases. Generally through a distribution among its shareholders on an annual basis. In any case, it has been emerging as one of the most active sectors of national equities. Although their prices generate greater volatility in their prices. With very wide differences between its maximum and minimum prices and that in some cases can reach 3%, even exceeding it in the most active sessions of the financial markets.
Real estate investment funds
Another of the formats that you have at the moment to invest your money is through investment funds. It is a more conservative option, but not without great interest for the coming months. Although your investment, more than in purely construction companies, is based on real estate. It is a small nuance that you must assess if you want to open positions from now on in these financial products. With a wide range of funds to meet your current demand.
These funds, in some cases, are combined with other financial assets. Coming from both fixed and variable income. Although minimum percentages that do not usually exceed 25% of the investment portfolio. They are made by different management companies, and under different models in their management. So you can choose the format that best suits your characteristics as a small and medium investor.
This investment approach is more aimed at the medium and long term. It is one of the peculiarities that these more specialized funds present. Not in vain, if what you want is faster operations, it will be better to opt for other more flexible financial products that can index the movement of construction companies in the equity markets. In investment funds, on the contrary, what you can do is create a savings exchange for the next few years based on this very important sector of the economy.
Investing through ETFs
Exchange traded funds assimilate the benefits of mutual funds and the sale and purchase of shares in a single product. Although under a very well-defined personality of its own. Well, it also has construction-based models, but with a series of very notable differences that you should know. It is not based on a single stock value, but rather on a basket of stocks. In this way, you will be able to diversify your investments more effectively. Especially in the most unfavorable moments for your interests.
It may also have a very bullish journey for the next few months. Without at any time their positions being linked to other financial actinos. Neither fixed income nor variable. It is a financial product that carries more risks in its contracting. But with a reward that can compensate your interest through your buying movements in the financial markets.
From this general scenario, it constitutes a highly advisable alternative for an intermediate investor profile. Without assuming excessively aggressive positions, but also far from conservative approaches. Currently, you have several exchange traded funds that meet these conditions. Nevertheless, the offer is not so dynamic like the one offered to you through other models in its management. To the point that they are more limited and require greater knowledge of the product.
Innovative investment proposal
In any case, you are also in a position to opt for a completely different investment model. Both in its conception and in its mechanics. It is investing small amounts of money in the construction of flats. At first you may assume that you get a yield close to 3%. But if the investment term is directed long, you can raise it to more than 50%. The most interesting thing about this unique proposal is that you can formalize it from 100 euros. In practice it means that you will own the flat or apartment in a proportional way. Like the profits obtained as a result of carrying out this operation.
It is an investment model of recent incidence and that still presents some doubts. It is also developed by new online platforms that have decided to undertake this project with a view to investing in small entrepreneurs. Without many risks due to the flexibility of the monetary contributions. It is, in short, other options that you can use to invest in the construction market from now on.
Investment in new homes
Your possibilities to invest with this financial asset do not end here. How? Well, very simple, by investing in a second home. According to several studies in the sector, the potential for revaluation in the purchase of flats is again attractive to investors. And specifically, the acquisition of a second home is one of the most effective ways to make the operation profitable.
For this you have an increasingly powerful offer of mortgage loans. Taking advantage of the drop in margins in the benchmark index for mortgages, the Euribor. Not surprisingly, it is at negative rates. This scenario can help you buy a second home. But with an investment objective, not for occupation. At the moment you have several mortgage loans that present a spread below 1%. In this way, the operation will be cheaper for you to formalize its acquisition.
The investment strategy can be channeled through a double track. On the one hand, by selling it when it has appreciated sufficiently. To obtain large capital gains in the operation. That can be exceeded at the 20% levels. Not surprisingly, in a period of a couple of years you can meet your most desired goals. With the advantage that you will control the weight of the operations by yourself, without the help of other additional tools.
The second of the actions that you can take with the acquired apartment is based on renting it. You can also get a return on this monetary transaction. Even only in the Vacation periods. Not in vain, they will become additional income that you can use every month. Thus enhancing the balance of your checking account. For as long as it seems appropriate to maintain the rental regime with your new home.
As you may have seen, you have more than one alternative to invest in the brick world. Any of them will bring you benefits, especially if you know how to manage them correctly and the market appreciates according to expectations. Without the need to focus exclusively on buying stocks in the equity markets. Because you will come to the conclusion that there is life beyond the bag. Without going any further, this is an example of this strategy.