Have you ever been to a shopping mall in capital smart city lahore? Have you ever heard of Shopping Paulista? I believe so (at least for one of these two questions). Did you know that you can be a member of the mall you frequent? Best of all, you could be investing just 100 reais. It sounds like it’s a joke, but it’s true, check out the forms of real estate investments.
How to invest in real estate?
Basically, there are two ways to invest in real estate:
One way is to choose a property in a great region and buy it. For this you need to obtain a large investment capital. If you don’t have this condition, don’t worry, because know that you can invest in another way, through the real estate fund.
The real estate fund is an intelligent way for an investor to enter this promising and profitable market, which is real estate.
In this option, instead of the investor making the decision on which property to buy, he joins other investors and, together, they buy not only one unit, but the entire development, each one having a quota based on their investment . Thus, although the total investment is very high, the deal is made viable because the project is divided into quotas.
Thus, instead of being exposed to a single property, the investor dilutes his risk, reduces the fluctuation, the fear of having a problem. If you have a property (investment), imagine if there is no one living in it, you will have a loss. When you have a hundred, a thousand tenants, you no longer have this concern, because if some people are not renting, you have others. So, the real estate fund is also a smart way to invest in this market.
+ 3 options to invest in real estate
Real estate fund income
Some details differentiate the direct purchase of a property in relation to the real estate fund.
When investing in the real estate fund, the investor also receives a rent, which in the real estate fund is called income, which, in this case, is exempt from income tax for individuals. However, investing in a property, there is an obligation to pay income tax.
Three points about investing:
- Profitability: how much profit the investment will give you in the month, in the year, anyway.
Profitability, in the real estate fund, has practically the same characteristics as when you buy a property.
When you invest in a property, you wait for it to appreciate. Obviously, this is not always the case, as there is a chance that you will buy and lose value (although that risk is small today). Also, there is rent income.
In the real estate investment fund, the idea is the same. If the enterprise is appreciated, more is earned and the profitability is proportional to the shares of each one. If it devalues, the losses are also diluted among everyone. It’s the same concept.
So when you own property, you get a rent. In the case of the real estate fund, you also have a rent, but proportional to the number of shares in the fund.
Remembering that, in the case of investment funds, income tax is not paid. It is noteworthy that the exemption is only valid for rent. In the case of valuation of the shares, in a future sale, it is necessary to pay Income Tax referring to the value of the valuation of the shares.
- Risk: market volatility.
Heated markets, developing neighborhoods, etc., bring an increase in property and rent values, in both cases. The opposite is also true. The great advantage of the real estate fund, here, is that it is possible to invest in shares in different properties, locations, etc., thus diluting the risks.
- Liquidity: ability to make quick money with equity or investment.
One of the great benefits of quotas in relation to the purchase of real estate is that, even by value, they are easier to be sold. When you need to “make” money, you put the part you want to sell on the stock exchange and, once sold, the money will be in the investor’s account in 3 days. Obviously, it’s much faster than achieving this with a property, for example.
+ Why invest in real estate?
How much does it take to invest?
If you want to make real estate investments, you don’t need to invest millions, you can invest 100 reais in real estate fund shares (Example). Because they are sold on stock exchanges, as if it were a stock. Imagine that you have 100 thousand reais invested in a real estate fund.
If you have 1% rent/month income you will get the money and be able to reinvest in new shares and/or repurchase in the same real estate fund (which is not possible when investing in the purchase of a property).
Thus, you can take advantage of the entry of low value resources to be able to invest and, at the same time, when you need money, have the ease of greater liquidity.
When evaluating an investment you should be careful, as you need to know where the real estate fund you are planning to buy invests its resources. Because when you buy these quotas, you outsource this management, but you also have the risks. Having a qualified manager to make the best decision is very important.
Well, the real estate fund is good for those who want to earn a monthly income, even though they have little money to invest, and also for those who need liquidity, because if they need a part or all of the capital, they just need to sell on the stock exchange. (and this operation can be quick).
What are CRI and LCI
LCI (real estate credit bills) is a nominative credit security, freely negotiated, backed by mortgage-backed real estate credits or secured by fiduciary sale, granting its borrowers the right to credit at face value, interest and, if applicable, restatement monetary policy stipulated therein.
The LCI is issued by the mortgage lender and must represent the entire credit. They are backed by real estate credits from various projects.
CRI (certificate of real estate receivables), is a nominative credit title, freely negotiated, backed by real estate credits and constitutes a promise of payment in cash. The CRI is issued exclusively by the Real Estate Credit Securitization Companies and can only be issued with a single and exclusive purpose: acquisition of real estate credits.
So, see how much you can invest , choose the best modality, assess the risks, and join this market so consistent and promising, which is the real estate market.