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Not to mention the other expenses with the notary and property registry offices. Even investors who use the Guarantee Fund for Time of Service (FGTS) suffer a bank fee when purchasing the property.
To exemplify, let’s say that an investor buys a house of 200 thousand dollar in the city. Adding all the fees included in the process of acquiring this house, the result will be a little more than 20 thousand dollar, or 10% of the value of the house.
Study your target audience
The corporate world understands well the need to know the profile of customers and then develop products and services that meet their needs. Similarly, the real estate investor needs to define what kind of people they want to negotiate their real estate with. This attitude will also help in choosing the most suitable housing. Visit https://www.realvantage.co/ for the best deals there.
- It is clear that the strategy adopted may be the result of an opportunity. Perhaps an investor lives in a city where there is a famous institution of higher education. Thinking about the university public, the investor can buy several compact properties to rent, or transform a spacious residence into a republic.
- On the other hand, an apartment close to a large urban center can be a good source of income if it is leased to professionals who are on business trips. Still aiming at this customer profile, some investors opt for condo-hotels. This business model involves buying one or more apartments and rooms that will be managed by a hotel development.
- In this way, the investor becomes part of a pool, that is, an association of buyers who join their rooms in order to explore them together. Therefore, they assume the income and risks of the hotel business.
- For investors who have singles and childless couples as their target audience, residential flats, also known as “long-stay”, are the alternative. These residences have hotel services that are paid by the tenants as if it were a condominium fee.
Define the best form of payment
This aspect is essential for an accurate real estate investment. Many think that cash payment is the best choice, but it is not always so. Sometimes, forming a consortium, for example, and investing most of the capital in an investment fund while the installments are paid can result in good returns.
If the choice is financing, it is important to compare the values from the contracts of a financial institution with those of construction companies or developers. The latter type is usually more flexible and has lower interest rates, since these companies want to win the customer.
However, the rule for financing remains the same: give a good down payment. Also, consider the possibility of making a real estate financing portability. In particular, if the debt was acquired before the recent reduction in the basic interest rate (SELIC), because with the new indices, the savings can be large.
Finally, the real estate market has a good perspective for the future, proving its solidity despite the upheavals suffered by the national economic recession. Therefore, it is safe to invest and, with the right strategies, to profit from real estate. By following the tips we gave in this article, we are sure that you will reach that target.
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