Things to consider when you buy property for live in/for rent

More than conquering your space, buying a property is making an investment for the future. Real estate tends to increase over time. Therefore, making a purchase in the real estate market is a process that requires calm, mainly because of the high values ​​involved. Finding an alternative that combines the features you have defined and an attractive price is no easy task. And to avoid headaches, before starting the bureaucratic part, it is always recommended to evaluate some important points, such as the physical condition of the property and really know the region where you intend to buy.

Taking into account that the financing of a property can take 15, often 30 years, it is necessary to consider long-term aspects when choosing the place where you will spend a good part of your life.

Despite the anxiety that having a new property can generate, think that the possibilities of undertakings in the city most of the time are many, so, if there is any point with which you are not satisfied during the purchase process , give a weight and a greater attention to it, which can be decisive.

The most important tip is: do not rush and understand that this decision must be taken calmly and analyzed in all aspects. If you are lost as to the main points to consider, follow our checklist below to see if the property corresponds well to all topics and, thus, if it is worth investing.

1. Location

Take a few walks around the neighborhood where the property you want so much is located. See if it has good options in the market, pharmacy, bakery, gym, etc. things that spare the use of the car for basic everyday needs. Then, research the means of transportation and proximity to the work of family members.

How long will it take you to get to and from your usual locations? Does the region have a lot of traffic? Do you have a subway? Near bus stop? All of these questions are essential when analyzing the location of a property.

2. Conservation status

If the property you are looking for is new, its state of conservation tends to be much better, in addition to the possibility of activating the guarantee for any defect. But if the home of your dreams is in a used property, it is important to find out every corner.

Open all the taps and showers , turn the circuit breakers on and off, check all the walls well to try to find cracks and, if possible, get a report on the building from an architect or engineer. So you will feel much more secure with the purchase.

3. Long-term size

If you are newly married or single, you may even be considering buying a 30 or 40 square meter studio right now. But, as we said, the financing of a property can last for several years. So the ideal is that you can glimpse a part of your future when buying the apartment or house.

Do you intend to get married or have children for the next 10 years? Then bet on a slightly larger space, of 60 square meters for example, that contains at least one more room.

4. Position of the apartment

For those who live in very hot cities, this checklist topic is very important. This is because if the apartment receives the afternoon sun, the chances of the heat becoming unbearable for a much longer period of the day are very high. In general, properties that receive the morning sun are more valued, so if you have the possibility to purchase one that fits this option, prioritize it.

5. Security

Not only the neighborhood, but the security of the condominium must be well observed. When visiting the property, see how the concierge welcomes you and how easily you gain access to the residents’ area. Talk to potential neighbors and ask about the violence in the neighborhood and whether there has been any violence inside the condominium itself.

6. Leisure area

Especially if you have or intend to have children, the leisure area of the condominium is important. As it is much more dangerous for children to play on the street today, it is interesting that they have areas to have fun away from computers at home and also to live with other children.

Also, think about the occasions when you can receive friends, such as holidays or birthdays. In these cases, the barbecue and the ballroom become very useful.

7. Value of installments

Now that you have analyzed the physical factors of the property, it is time to consider the financial aspects. When you finally choose your future home, go to the main banks and do simulations of the plots.

It is important to know that not always the most viable option, despite the often lower interest rates. If you have been a bank account holder for a long time and have a good credit line, your manager may be able to arrange special financing conditions.

8. Condominium

In addition to considering whether the parcels of the property will fit into your long-term budget, it is essential to take into account the value of the condominium, which the older the more expensive it will be. Add the financing portion to the monthly value of the condominium and see if the result will not compromise your quality of life.

See “Smart ways to invest in real estate” for more information.

Smart ways to invest in real estate, think outside the box

Those who plan the future know that it is also necessary to think about the best ways to invest money. After all, with so many aspects related to investments, such as security, liquidity and return, it is necessary to analyze every detail well before making an application.

How to start investing in real estate?

Anyone who thinks that it is necessary to have a large amount of money to invest in real estate is wrong. It is possible to start investments through a real estate consortium, for example.

In addition, acquiring a property in the plant or land in condominiums are viable alternatives to invest the money, even if they are not high amounts.

However, it is important that anyone who intends to invest in real estate think rationally. It may seem obvious, but when it comes to investment, no decision should be made on impulse.

For this, it is important that you keep in mind whether that property – be it land, a house or a commercial building – can really yield the desired profit.

real estate

Here are some Smart ways to invest in real estate that you can consider:

Invest in land

Although the purchase of ready -made properties is a more accepted idea by most people, investing in land is an excellent way to guarantee profit in the medium and long term.

As cities are expanding, land is unlikely to lose its value over the years.

In this way, it is possible to obtain a considerable profit with the appreciation of this property according to what was spent during the purchase of the land. However, it is essential to make a careful analysis of the region, to ensure that the properties will develop or that, at least, have the potential for appreciation.

Buy real estate in the plant

The properties on the floor plan are the most sought after among those who wish to acquire their own home.

However, because it is a good that will still be built, this option must be very well made possible by the interested parties. After all, important and decisive factors must be considered during the period of construction of the property.

One of the positive points is that buying a property in the plant, generally, is synonymous with lower prices. Therefore, it can be an excellent alternative for you to acquire a new property, paying only one entry and small installments.

Thus, after a few months, with the work still in progress, there is the possibility of selling it at a higher price.

Look for good properties to rent

Having a rental property is a way to guarantee extra income every month. The secret for this investment to pay is knowing how to choose the ideal property.

Finding a property to invest with rentals requires a lot of market research, too. It is important to investigate the real profit potential that each property presents in order to make a decision based on relevant information. Whether residential or commercial, the property must be well located, in a safe area, with good external appearance and also with the documentation in order.

In addition, the saturation of properties for rent is another essential point for the profitability of the business, after all, it is necessary to find customers so that the value of the lease yields some profit.

Make reforms

A very common practice in the real estate market refers to the purchase of used properties that need some type of renovation.

It is possible to find some houses, mainly older ones that, with a renovation, become much more valuable. For that, one must have a nose for finding properties that have potential.

So, if you want to devote yourself to the task of investing, you can spend your time looking for properties that need improvement. In this case, it is very important to take care of the details with the renovation. Stay tuned to the project, materials used and the labor contracted. Thus, you will be able to maintain the property valuation without losing profit.

Study about the market

Another tip is to study the real estate market. Only then will you be able to identify the best opportunities.

Research on market fluctuations, know the areas that are appreciating and follow the rise and fall in rents.

Investing in real estate, like any investment, also has its risks and, therefore, you must prepare yourself to understand what happens.

real estate

How to invest while spending little?

One of the best ways to invest in real estate is through a real estate consortium, that is, together with other people who want to purchase a property.

The value of this asset is divided into monthly fees that are paid to an administrator. When paying the consortium, the investor receives a letter of credit in the amount paid.

The letter of credit can be used to buy a new or used property, as well as for construction or renovation.

The whole process is done without bureaucracy and without the payment of interest – only the administration fee is charged. There is also the chance that the investor will be contemplated before the end of the consortium, which allows the property to be purchased in an even shorter period.

Now that you know how you can invest in real estate, how about starting to plan and guarantee extra income? If you want to invest little by little, through a real estate consortium, remember to hire a reliable broker to avoid future problems and abusive charges.

So, reader, what did you think of the tips and information we brought about investing in real estate? If you liked this content, how about receiving other tips like this to learn how to better invest your money? Be sure to subscribe to our newsletter to stay on top of news.

Real estate as a strategy for investment protection and diversification

What have you been doing to protect your assets from huge losses? Have you used investment diversification or applied them all in one place?

It is undeniable: investing involves risks, but there are strategies that can help reduce the consequences of a bad time in the market. Among them is the diversification of investments.

Despite being a common issue in the financial market, many are still unaware of its importance, and even that investing in real estate can assist in this objective of protecting and building equity.

But, before we talk about the advantages of this strategy and how to invest in real estate comes as an option, let’s start with the basics:

What is investment diversification?

Investment diversification is a technique that aims to dilute risks and maximize gains. It is a distribution of money in different applications, so that the investor is not so affected when there is any negative performance. It is a concept widely defended and used in the investment universe.

You may have heard the advice “don’t put all your eggs in one basket”. It is an old metaphor to explain that if you put the eggs in the same basket and, by chance, drop it, everyone will break. But, if you separate the eggs into several baskets, and eventually one of them falls, you will lose only one egg. In the investment world, the name of this is diversification. This is how you can guarantee more security in your wallet.

Applying your money in different places is important to dilute the risks and maximize the gains. Thus, when one of your applications is not performing well, it will not be as impactful, as the others can compensate for this loss.

Investing in real estate: an option for portfolio diversification

Characterized as a safe investment and providing gains in the medium and long term, real estate appears as a good option for portfolio diversification.

Taking the crisis generated by the Covid-19 pandemic as a scenario, many investors who focused their resources on stocks panicked at the stock market’s downturn.

However, those who have part of their resources allocated to real estate, have a greater sense of security. And even when the real estate market oscillates downwards, the investor manages to have a longer period to make decisions. It is a segment with less volatility.

It is also a way to earn extra income, by renting these properties, and to build equity. However, when investing in real estate, it is necessary to take into account some considerations:

  • Investing in real estate is more common among investors with a conservative profile, whose main concern is to avoid the great risks of the volatility of the Stock Exchange and focus on investments that provide returns in the medium and long term;
  • More moderate and even bold profiles also enter this market, often buying apartments still in the plant with more attractive prices , to resell with appreciation in the medium term;
  • When choosing a property, it is important to assess its potential for appreciation. Observe the location, possibility of urban growth and quality of the development;
  • Pay attention to your needs: despite being a safe investment, the properties have reduced liquidity. If you believe that you will need the money in a short time, it is important to know that the process of selling and renting the property may not be as fast as you wish;
  • Ask the Brokers for assistance, professionals who can help you choose the ideal property, as well as inform you about the potential of the project and location.

What are the advantages of diversifying investments?

Dilution of risks

As we have already mentioned, the main objective of investment diversification is to reduce risks in the face of fluctuations in the financial market.

When you distribute your resources in different places, an eventual drop in a specific investment will affect only a percentage of your money. Thus, there is a dilution of risks and protection in different cycles of the economy.

Consistent profitability and potential gains

Beginning investors may wonder if the investment diversification technique does not affect their earning potential. Industry experts say no. In fact, what you reduce is the oscillation.

There is a possibility that you will not profit as much as possible, but you will also not have significant losses. When the risk is assertively diluted, falls are more controlled and ensure better returns in the short, medium and long term.

And in a scenario in which one of the portfolio’s investments comes up, you will increase your return.

Security and balance

Even experienced and bold investors choose to diversify their investments. This balance in the portfolio may affect the pace of financial growth, however, it is a very plausible way to build equity in the long run.

It is also important to emphasize the security that this technique brings to the investor. This regardless of what economic cycle it is in: accumulation, profitability or capital preservation.

Regardless of the financial phase, it is worth knowing this concept and taking advantage of opportunities, including investing in real estate to protect and even enhance your earnings.

Real estate

Real estate as a strategy for investment protection and diversification

Smart ways to invest in real estate

Things to consider when you buy property for live in

Top 10 suburbs for buying investing real estate in US in 2021

Why we should invest in real estate

5 tips for your 1st investment

A Comparison of Real Estate Investments vs Stocks

How to analyze a rental property

Real estate investing 101

The worst type of Real estate investment