When it comes to investment, real estate is the first thought that comes to the minds of most Brazilians. This is cultural, mainly due to the sense of security they provide. Now, with the most favorable interest rates, financing for rent has been the big strategy for many.
But is it worth it? For a moment, put aside the focus on profit alone and consider all the steps, costs and risks that will be involved in the operation. This is not to discourage you. On the contrary, it is to ensure that this is a really profitable investment and brings the financial independence you are looking for.
To help you make conscious and planned decisions, we have prepared a post with the main tips and, of course, we will tell you whether it is worthwhile or not to finance a property for rent. Check out!
1. Look for the best opportunities in the market
Financing is the best way to buy and invest in real estate. But you need to be aware of some details so that the interest rates charged do not increase the value of the installments so much. After all, you don’t want to have to shell out that much money to cover them, do you?
The tip here is to look for properties that are in the plant or in the initial phase of construction, especially in places that tend to appreciate. In addition to being cheaper than the market average under these conditions, the rental price may rise in a short period of time.
If you consider that the value of the parcels will not be changed, once the property is delivered, it can be offset against the rent.
Another important tip is to negotiate the interest rates with the bank or financial and the fees and commissions of the real estate. If you have a good value to give in, it will be even better. Thus, the rent can cover the entire amount of the installments and still make a small profit.
2. Consider real estate services
When the property is available for rent, you will have to disclose it, negotiate values, payment methods and terms, prepare a lease, make charges and perform a series of other actions.
Unless you are just dedicated to it, doing all this work on your own will not be easy and will take up a lot of your time. In that case, you need to also consider the services of a real estate agent.
The fees charged are worth it, as they do not impact the rental amount as much and you will have professionals at your disposal, such as brokers and lawyers, who can solve everything for you.
This is important, as some tenants can create problems and having professional support will leave you more relaxed. After all, what is the use of renting if you do not receive the rent or have the property depreciation accelerated, right?
3. Calculate costs and return on investment
Now comes the most important part of the strategy: discovering, in practice, financing yourself for rent is really worth it. For that, you will have to list all the monthly costs and expenses involved in the operation (installment of the financing, property tax, maintenance, condominium fee, etc.), discount them from the rent and see how many months it will take to return the investment with the profit what’s left.
To do this more accurately, consider vacancy periods (time of empty property until another tenant rents it) and define your payment responsibilities as well as those of the tenant. For example: who will pay the IPTU, perform the maintenance of the property, pay the condominium, etc.
4. Take advantage of government incentives
The time is ripe for financing real estate. In order to move the market, especially the civil construction segment, the federal government has been making cheaper and accessible lines of credit available to salaried and low-income people.
These opportunities should further contribute to making the investment profitable. You can use part of your FGTS without being fired and/or join the Minha Casa Minha Vida program, for example.
In short, as long as you are aware of costs and expenses and know how to take advantage of the best opportunities that the market offers, it is worth financing to rent.
How about knowing even more about it? Take the opportunity to know the main questions and answers about real estate financing right now. The material is free and will help you a lot in this endeavor!