The year 2020 is being very different from what many imagined at the end of 2019. The pandemic has affected the world, including the Real estate market.
And buying or renting a property has become an investment that requires even more attention and care. But, despite the uncertain scenario, some factors have contributed to real estate being a good option to invest.
Which is better, buy or rent?
A recurring question among those interested in investing in Real estate market still this year is whether the best thing is to buy a property or rent it. This will directly depend on your willingness to invest.
Also, it is necessary to take into account some factors. Since the beginning of the pandemic, interest rates have been falling for mortgages.
Another point is that several tariffs were reduced precisely as a way to minimize the impacts of the pandemic on Real estate market. Even private loans have already registered historic yields.
Therefore, for those who already have a good reserve and long-term income guarantee, investing in real estate purchases can be an excellent alternative. Apparently, after the period of recovery from the pandemic, the sector should return to heating up.
This growth together with current financing conditions are an excellent opportunity for investors.
Those who want to rent must also be cautious. This is because, even with the government granting discounts of up to 50% on rentals, the measures are short-term and do not take into account the post-pandemic period.
Where to invest in the Real Estate Market in 2020?
But after all, where to invest in Real estate market in 2020? Well, if you want to secure your own property or even live on income in the future, there are some interesting alternatives at the moment.
Due to the scenario, many construction companies are drastically reducing values in addition to offering different conditions for units under construction or newly launched. This combined with the fact that interest rates are lower is without a doubt an excellent opportunity.
Keep in mind that rents in Brazil are traditionally adjusted according to the NCC or the IGP-M. In other words, buying a property you will always be sure that the rent will be higher than inflation, which is already a higher yield than many investments available on the market.
In addition, you have to take into account that buying now, when the sector is experiencing a downturn (sales drop reached 65% in some places) increases profit in the future. That’s because the natural tendency is for the market to pick up pace.
The only difference is that this will not happen in 2020, but probably from 2021 onwards.
It is also necessary to consider that, at the moment, negotiations tend to be more favorable for those who buy. After all, whoever is selling real estate assets is focused on selling in, thus being able to provide better terms.
But, the ideal, if you want to invest in this sector, is always to consult an expert to fully understand the best alternatives for your case.
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