Investing in real estate is a topic that divides opinions, especially in times of economic instability. After all, it is natural for people to want to protect their assets and guard against possible risks.
However, whatever the context, this type of investment is quite healthy and intelligent, as long as the investor is aware of the real estate market and, preferably, well advised by a trustworthy company. If you are wondering if this is the best time to invest in real estate, we have already answered the answer: yes!
The current economic scenario is favorable for the purchase, as the periods of crisis significantly affect the values. In addition to the drop in prices, payment conditions are also made easier, such as financing real estate at very low-interest rates and longer terms for settlement.
In this post, we explain the main advantages of this scenario for you to be convinced once and for all that it is worth the investment. Continue reading and make your decision consciously!
The experts in the real estate market are unanimous in this matter. All of them point to the interest rate as the biggest attraction for investing in real estate in times of crisis. This scenario is even more attractive if we consider the declines in the SELIC rate, which leaves investment income and savings insignificant.
Although savings are still the most popular investment in Brazil, successful investors know that this is not the best alternative for investing their money. The real estate market, in turn, guarantees the expansion of equity and the consequent appreciation of property over time, which in itself is much more advantageous.
There is an old saying: whoever buys land, make no mistake! In fact, investment security is one of the main factors that drive the acquisition of real estate. After all, we are talking about a durable good that will be in your name. The benefits go beyond the guaranteed stability, including possibilities of extra gains with the valorization of the place.
Even if you do not intend to resell the property in the future, the simple fact of having a guaranteed rent means extra income every month, which can boost your retirement, for example. This represents enormous security in terms of long-term investment, because, even if the economy suffers sudden shocks, you will always have possession of the property in hand.
Greater bargaining power
Investing in real estate in turbulent times is interesting because it allows you to negotiate valuable properties for a much more attractive price. The cost-benefit is guaranteed since a buyer with a good understanding of the market knows that a good property has its value.
So, although in some cases high prices are justified, the crisis makes it easier to negotiate them. Especially because those who need to sell with a certain urgency, tend to accept lower prices to immediately solve a need.
Not to mention that, when the period of instability passes and people are interested in buying again, the property acquired previously will already have a higher market value, in view of the increase in demand. In short, this is exactly the logic of the investor – buy a house or apartment for less and sell for more.
Protection against inflation
Inflation is one of the great villains of investors. This index measures how much the money invested lost value in a certain period, and can affect a series of applications. This does not happen in the case of investment in real estate, in view of some indicators of the real estate market, such as the National Index of Civil Construction (INCC).
This indicator influences the rent adjustment, for example. Thus, even if inflation is high, the investor gets rid of the risk of having his property devalued. In this sense, we can say that the duly adjusted rents represent profitability related to the registered inflation – even if in an indirect way.
Ease of payment
This aspect has everything to do with what we talked about above, about bargaining power and an abrupt drop in prices. With the adverse scenario, it is natural that payment conditions are also facilitated, such as real estate financing at low-interest rates and with excellent terms for settlement.
In addition, in the last few years, the civil construction sector has shown intense productivity. However, with the decapitalization resulting from the moments of crisis, great properties remained at irresistible prices in the market. So, companies are willing to negotiate, especially if you can offer a considerable amount in cash.
Real estate is among the assets with the greatest potential for appreciation in the market. This can be explained by several aspects, such as the fact that the demand for housing is something constant in society. That is, there will always be someone interested in renting or buying a property, even in economically unstable periods.
In addition, the trend is that the property will add even more value over time, considering the development of the property’s region. In fact, this is one of the main strategies of those who invest in real estate.
The buyer buys a cheaper property in a new neighborhood, for example, but with excellent potential for appreciation in the future. A few years later, with the development of the local infrastructure, the property may be resold at a much higher price.
Some factors that influence this equation are related to the opening of shops, shopping centers, schools, universities, among other attributes that add value to the neighborhood, as well as the implementation of green and leisure areas.
The advantages we mentioned in this post are indisputable. However, to be sure of the profitability of the transaction, the investor needs to be very attentive to some requirements before making the purchase. The first step is to analyze market trends and assess your budget, prioritizing the most cost-effective offers.
It is also important to have a specialized consultancy to find the best acquisition conditions and diversify your investments quickly, conveniently, and safely.