Buying property to invest: Is it worth it?

The increasing presence of Brazilians with investments in the Stock Exchange changes the relationship of individuals with financial products. However, in the face of so much newness, people with a conservative profile still wonder whether it is worth investing in real estate .

The answer to this question is not simple and depends on the objectives, financial availability and investor profile. The reason for this is that some factors are not taken into consideration when buying a property as an investment.

Read on to find out whether real estate is worth investing in and whether there are other ways to invest in the real estate market.

What should I consider when investing in real estate?

When it comes to real estate , it’s not just residential properties that should be considered. Commercial buildings, vacant lots or subdivisions are also part of one of the best-known, safest and most traditional forms of investment.

Therefore, it is not uncommon to hear whether it is still worth investing in real estate. However, the answer to this question depends on the analysis of the investor's objectives, such as short-term returns, immediate liquidity (when the value becomes available quickly) and appreciation of the asset.

If you are thinking about purchasing a property as a way to earn passive income in the long term, there are some factors to consider, such as inflation, depreciation, growth potential of the region, interest rates or property appreciation.

Another factor that is not often considered by those looking for a property to invest in is the risk of the apartment remaining empty for a long period of time, which will require the owner to pay the property costs, such as property tax, condominium fees and any renovations.

In the case of locations considered further away from the center, the vacancy period between rentals is also a detrimental factor, because it may take a while for someone else to occupy the property, which results in the same negative factors mentioned above.

In the event of an unforeseen emergency, in which the person does not have other assets or reserves to cover it, the property will not be able to serve as immediate income.

This is because the liquidity of this type of investment is very low. Therefore, sales can take some time to happen, especially when it comes to finding a buyer willing to pay what you ask for the property.

Okay, but I like the real estate market. Is there another way to invest in this sector in a more dynamic way?

For those who like the security that the real estate market offers, but are not willing to bear the burdens associated with the process of purchasing and maintaining a property, they can adopt other investment strategies.

Real estate funds are the best-known alternative and they work very simply: A financial institution issues a title with a certain value associated with a property, in which profitability is obtained through rent.

However, there is another little-known way to invest in real estate, but which can meet your time demands and limited availability for bureaucracy: Investing through professional operators, such as Citas .

Professional operators take care of the bureaucratic part associated with investments and are able to choose the best real estate fund for you to invest in, according to your needs, to maximize your return without headaches, unforeseen expenses and assured liquidity.

Now that you know whether it’s worth investing in real estate, how about learning about ESG investments ? Check out our blog!

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