Purchasing a property goes beyond the personal fulfillment of owning a home. Buying real estate is one of the smartest ways to create a long-term investment strategy.
It is important to clarify that regardless of the economic moment, people who invest in real estate are able to protect their assets, in addition to guaranteeing a good profit margin when selling these properties.
If you want to understand more about this subject, it’s easy, just read this article until the end!
Interest on real estate financing
Compared to other lines of credit in the market (vehicles, overdraft, CDC, credit card) real estate financing has the lowest interest rates available.
The real estate sector is very important for Brazil’s economic recovery. Therefore, the government has an interest in releasing credit lines or improving payment conditions for real estate financing. In this way, the investor gets capital to invest in real estate.
The financial cost of real estate financing
The cost of real estate financing is levied only on the Debt Balance, and it is updated month by month, that is, using the SAC Table modality , the debit balance will be lower monthly – and consequently the interest as well.
It is important for the investor to understand this, as one of the biggest caveats related to this long-term investment is the fear of not being able to honor the installments of the financing. To avoid this type of situation, it is enough for the buyer to have an efficient financial planning and understand the clauses of his financing contract.
Therefore, do not allow yourself to leave with doubts after a conversation with a financial institution.
The security of real estate financing
When real estate financing is contracted, the property is fully covered by life insurance that settles the property (the settlement is proportional to the income share of each bidder of the proposal.), In the event of an accident (death or permanent disability) and damages that covers the property’s appraisal value, in the event of a claim.
Therefore, buying a property is considered a great way to protect your family’s interests. When investing in other financial options, there is no such protection through life insurance.
If you are looking at the best ways to create a long-term investment, with the aim of ensuring the safety of your heirs, consider buying a property as the smartest way to achieve this goal.
It is interesting to clarify that life insurance linked to real estate financing is mandatory. However, the consumer is not obliged to purchase the insurance offered by the company with which he will finance. He can search for other insurers.
However, it is common for lenders to offer the best insurance option to customers who have already purchased financing with the company.
Paying less interest on real estate financing
How to pay less interest on financing? The answer is planning. From the moment a person decides to buy a property, he must rethink his expenses so that his budget is able to pay the installments of a loan. Generally, the buyer must allocate 30% of his monthly income to honor this commitment.
Another important point is to try to give as much input value as possible. A very common tactic to achieve this goal is to use the balance of the Severance Pay Fund (FGTS).
This is one of the smartest ways to use this capital, as your income is very low, so leaving it standing means losing money.
You can still add your FGTS balance with someone else’s, if you want to buy a property together. This is very common among couples , for example.
Another thing that many people do not know is that it is possible to use this money to repay the debt of a real estate loan or to settle arrears.
In fact, you can use this strategy more than once, as long as you respect an interval of 24 months from the last use of FGTS for this purpose.
In addition to FGTS, another way to make a good entry when buying your property is to redirect applications for this long-term investment. Redeem amounts that are invested in products whose profitability or liquidity no longer serve your financial interests, such as Savings, for example.
It is important to stress that it is not recommended to use financial reserves, created for emergency periods, when buying a property. If you have a fund created for your retirement, for example, there is no point in allocating it for another purpose.
Planning the amortization of financing
Use liquid investments with liquidity (CDB, savings, DI funds), thus, monthly, you will earn gains on your savings, and at the end of the year (or the planned period), at the time of extraordinary amortization, you will have a capital greater than the original to effect its amortization.
This is a simple form of planning. Saving a small amount per month and directing it to a financial investment, the investor will have no problem building an asset capable of helping him to pay his mortgage.
Considering personal aspects when applying
This is an issue that needs to take into account the individuality of the investor. Realize that the same choice can bring different results to different people.
Before choosing how you want to invest your money, check how the country’s economy is doing . Some years ago, Tesouro Direto yielded double digits, today that is no longer a reality.
Also, study your financial life. If you are a professional, for example, you will not have the FGTS amount to amortize debts. Therefore, it may be more interesting to keep your money invested in an option with good liquidity, as you may need it to pay the installments of your financing, but also for other financial needs.
For example: if you have R $ 70 thousand at your disposal and are in a good economic moment, being able to pay the installments of your financing without difficulty, why allocate this amount to pay off the debt? It is more advantageous to keep it invested and use it as a financial reserve in case of need.
On average, the effective interest rate on real estate financing has been between 10.5% and 11.5% pa and today, we have already obtained good investments, paying return of approximately 12.7% pa, like the CDB, which pays between 85% and 95% of the CDI, that is, the interest paid on investments, may be higher than the interest paid on real estate financing.
Conclusion? With the interest received from your investment, it is possible to pay part or even the amount of your financing installment, depending on the investment.
It is clear that the investor must always contextualize these values for the moment he is in. The economy is not in a cast – and interest rates are constantly changing.
Appreciation of the good
Investing in real estate has been the most interesting option, as this investment always has good profitability, since it evolves along with the growth of the city. And this valuation – in line with a good schedule of extraordinary amortizations (Savings and FGTS) and security (life insurance) – makes the financial cost of financing an excellent option for investing and building equity!
In addition, the property can generate fixed income by paying rent and this amount can be invested in other products.
As we saw in this article, long-term investment in real estate is still a very advantageous option to protect people’s assets. If you have any doubts about this subject, let us know in the comments field. Our team can answer your question in the next post!