This practice, so widespread and used in other forms of investments, is also the rule for applications in the real estate market and guarantees a gradual increase in income. When this system is followed, the investor is able to use the capital obtained from the sale of one property and reapply it in another without having to inject more money.
Vary the ways to invest
Of course, novice investors prefer to start by investing dividends directly on real estate. However, when the experience in the real estate area increases, it is interesting and recommendable to start diversifying the forms of financial application.
Some types of Real Estate Investment Funds (FII) have already been mentioned in this article, such as:
- Income funds – which involve buying or building real estate (residential, commercial, etc.) for rent;
- Development funds – used by developers to attract investors through the quotas of an undertaking;
- The purchase and sale funds – which include the acquisition of real estate for future sale at a higher price.
In addition to these, there are other types of profitable applications. Are they:
Real estate receivables funds belong to the category of fixed income securities used to raise funds for investments in the real estate market. Among the papers of this fund are the Certificate of Real Estate Receivables (CRI), the Letters of Credit for Real Estate (LCI) and the Mortgage Letters (LH). So when you are thinking how to select property investment then you can think of the following options.
- Funds are the FII’s that invest in other real estate applications. It works like this, the investor wants to have a card with different applications. In each of them, a different strategy is used. Due to this complexity, generally, a financial manager is hired to assist the investor.
- With the support of technology, a new tool for applications has emerged: the investment platform for real estate projects. In view of this, many people who did not even dream of being investors began to enter the real estate market.
There are many projects with good profitability linked to these platforms
These investments are restated by the interest on Interbank Deposit Certificates (CDI), which vary between 20% and 110% per year.
Although it covers the cost of income tax, investment platforms offer practicality in finding properties of various standards, including important information about housing, such as the study of financial economic viability and the project’s license.
Even after the investor makes an offer, he remains receiving quarterly reports on the progress of the works, selling price, valuation and the units traded.
Take into account embedded costs
A good investor needs to know all the expenses that go beyond the net value of the property. For example, depending on the region, the Property Transfer Tax (ITBI) may be higher or lower.In addition, there is a public deed, which needs to be issued when a property is transferred to another owner. An exception is homes acquired through the Housing Finance System (SFH).Other documents that make the final cost of the property more expensive are negative certificates, which are accompanied by administrative fees imposed by financial institutions. And, for those who use a real estate agency or a broker to mediate the negotiation, there are the brokerage charges.