When the purpose of the property is to generate income, the founder of Advisor by Maggly recommends establishing how much capital is available
SANTO DOMINGO.- After acquiring their home, Juan and Maria (fictitious names) decided to take a new step: to build assets that would allow them to increase their economic security and, over time, have new sources of income for their retirement.
After organizing their finances and saving, they began to take an interest in real estate. The idea of acquiring a property to generate income appealed to them, but they knew that committing a significant portion of their resources required more than simply finding a well-located or highly profitable project.
To get started on the right foot, they contacted Maggly Uzcátegui, a financial strategist specializing in capital creation and asset protection, for strategic advice.
“We want to start building wealth through real estate, but what should we analyze before buying?” they asked. Uzcátegui first guided them to define what they wanted the property for: fixed income, short-term rental, or another purpose.
Then, she asked them to analyze how much capital they had available to invest, as that figure would help determine the type of property they could consider. According to the specialist, one of the most frequent mistakes is calling any real estate purchase an “investment” without determining whether that property will contribute to wealth growth.
“You can have an asset that, instead of being an asset, becomes a liability because you have to pay for maintenance, condominium fees, administration, and it's closed up,” he warned them.
Juan and María explained that they want their first property to generate income and be part of a wealth management strategy. Therefore, the strategist advised them that, in addition to knowing how much it costs to buy, they must determine how much it will cost to maintain and what return it can generate.
When the purpose of the property is to generate income, the founder of Advisor by Maggly recommends determining how much capital is available. The calculation should not be limited to the amount required to reserve the property, complete the down payment, or cover the sale price. It should also include commitments related to its acquisition, financing, operation, and maintenance.
Beware of the risks
According to the professional, couples shouldn't evaluate a property solely based on the potential monthly rental income. To determine its profitability, they should factor in costs such as interest, insurance, taxes, maintenance, condominium fees, administration fees, repairs, and periods when the property might remain vacant.
A property may appear attractive due to its price, location, or projected profitability, yet still pose a risk if proper due diligence is not conducted. Before committing your capital, you should investigate who is developing the project, their track record, and their experience delivering similar properties.
This process becomes even more important when buying off-plan. In these cases, the investor commits resources to a property that has not yet been completed, so the developer's reputation, experience, and ability to deliver are part of the evaluation.
According to the expert, building wealth isn't just about identifying where to invest money to make it grow, but also about protecting capital accumulated over time. That's why she recommends including expenses that are not yet precisely known in your projections.
Juan and María's conversation with Uzcátegui didn't end with a property recommendation, but with a list of questions they should answer before buying: How much capital can they commit without affecting their financial stability? How much can it generate in a conservative scenario? How much will it cost to maintain?
