It is a fact that increasingly soon many people wonder if it is feasible the sacrifice to buy a property or the best way out is to pay rent. We know that the belief that the rent covers the purchase of a property shows that the second option is the best, but is it so obvious? Let’s explain.
What investments can you make?
First, assess what investments you can make. For example, supposing that an apartment in question costs R $ 500 thousand and its rent is R $ 2,250 per month, with these R $ 500 thousand there is the possibility of buying some other property to rent? It is very likely that it will, so consider how much you would earn from renting this other property if you can afford it.
Now, imagine that a commercial establishment in your city could be bought for the same $ 500 thousand and rented for $ 3,000 thousand in the month. In this case you could profit from the rent of the property, pay the rent of the apartment and still have the difference left over.
Do you think that investing in commercial real estate is a lot of work? Even if it is, there are other investment alternatives that will give you higher values than the rent on the apartment of your dreams. Want to know which one? Look for the Real Estate Investment Funds, this type of investment is an easy and bureaucratic alternative that guarantees great financial returns.
There are also Direct Treasury or CBDs that are other forms of investments that guarantee a profit higher than the rent value of the same apartment.
I do not have all this money to pay cash, I’m going to finance it!
Most people may not have all this money from the example above to buy a property or make some investment, so they choose to “give an entrance” and finance the rest of the value.
Faced with this situation, it is possible to make a “forcinha” to be able to pay the entrance, since the own broker informed to him that the value of the portion of the purchase is the same of the rent, then, the car is sold, it runs to take all money of the savings, anyway, is this really the best alternative?
Assuming that the broker sells the property for you, it will profit 6% of the value of the rent, since in the case of a lease the same can receive one or the rents. The R $ 500 thousand apartment will yield R $ 30 thousand for the broker and the rent about R $ 4,5 thousand, which is more advantageous for the broker? So, as much as the broker in question is serious and honest, it’s a fact that “plot value equals rent” is just a selling strategy, and guess what? The installment will not always equal the rent.
Suppose you make a financing of R $ 350,000 in 20 years
This will be based on the Price Table, a portion of about R $ 5,000 in the month, considering the effective rate of 1.4% per month. That is, you will pay double the rent quoted.
It is also very important to note that such a long term commitment is very risky because the possibility of losing the business or some other problem affecting your budget is great, which can get you into a big debt.
Another point that needs to be mentioned is abusive interest, did you know that to borrow R $ 350,000 you will pay over the term R $ 870 thousand of interest only? Yes, and even during the 20 years the financing of this property is not yours, but the bank.
And no, the property will not be valued. At the end of the financing, adding the interest and amortization, you will have paid approximately R $ 1.22 million only of installments that adding the entry results in the value of 1.37 million. In this case, if the property is valued at an annual inflation of 5%, it would still be worth much less than you paid, about R $ 1.33 million.
Before all these points presented, it is important to reflect on your part and investigate which investment will actually give you a good return.