The type of investment depends a lot on the profile of the person making the investment, so as well as knowing how you deal with losses and gains, you need to determine what your objective is when you start investing.

Buying real estate to invest in is a different type of business from investing in direct treasury funds or buying shares, for example. The great advantage of buying a property with the intention of investing is that you don't have to depend on the instability of the financial market, as happens with those who invest in other types of transactions that depend on the value of the dollar or the performance of the stock exchange.

The strength of the real estate market

The current economic climate is proving to be very favorable for investments in real estate, so let's understand why.

Some expressions such as "bricks are hard currency" and "those who invest in land can't go wrong" are well-known in the real estate market precisely because they represent this type of investment.

Investing in real estate is considered one of the most economically stable operations. A property cannot be frozen by the government and is immune to crises, such as the collapse of a financial institution like brokerages or banks, or even a possible decision to confiscate a savings account, for example.

Regardless of the direction of the economy, people need to live, work and start businesses and, in general, these situations require real estate to be consolidated. 

Lowest Selic rate in history

Especially in 2020, the financial market is experiencing the lowest Selic Rate in history, which is estimated to be around 3% for the year. In 2019 it was 6%. 

Selic is the economy's basic interest rate, regulated by the Central Bank's Monetary Policy Committee, Copom. The low rate benefits people who want to make investments and finance themselves, such as real estate.

Is it worth investing in real estate?

The solidity of the real estate market is one of the positive points for those who invest in real estate. The investment can be for a short-term return, when the investor buys a house or apartment to renovate and resell with more added value.

There is also the investor who buys real estate on the ground, this type of investment will appreciate even more than buying a finished property, but the return will be in the medium term.

Another type of investment is for people who want to maintain a monthly income through rent. Often the amount the investor pays monthly for the property is less than the rent they can charge, and the property appreciates in value every month.

How to make the best choice

If you are considering investing in real estate, but are still unsure about how to choose the right property, you need to consider some important points:

• Location: This is a crucial point when choosing an investment property. The development should be close to commercial areas, with services and facilities such as access to public transport.
  Anyone looking for a property to rent or buy, and thus become the person who will make their investment worthwhile, wants to be well located and as close as possible to schools, supermarkets, pharmacies and other services that will make their routine easier.
• Structure of the enterprise: When it comes to choosing a property to invest in, one option that is proving very popular is buying apartments in condominiums with a club structure.
  This type of property brings together leisure facilities, quality of life, personal care and attractions for pets in one place. Families are looking for such complete places to live.
  These developments become even more attractive when they are bought on the ground floor, since the property values are lower than those of finished properties, and will appreciate even more when the keys are handed over.
  This option is advantageous for those who wish to resell the property in the future, or even guarantee a monthly income through rent.
• Property size: Properties with two or three bedrooms, which house medium-sized families, are the most liquid on the market. To find out which type of property is most in demand in your area, do some research with local real estate agents. Ask them which neighborhoods are the most cost-effective and then make your choice more assertively.

By following these tips, and also by talking to other investors, you will be more confident in choosing a property to resell or rent out. 

I want to be an investor, what should I do?

The great advantage of becoming a real estate investor is that you don't need to have a large sum of money set aside to start making this investment, and at this point, choosing off-plan properties also proves to be a favorable option. Depending on the type of property you want to buy, you can already start negotiating with a price in the R$ 20,000 range.

Are you now more interested in learning more about real estate investment? Then look for an accredited realtor with experience in the real estate market who can present the best alternatives for your profile. 

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