asset allocation real estate

Bet on real estate to diversify your investments


You’ve probably heard the advice “don’t put all your eggs in one basket”. It’s an old metaphor to explain that if you put the eggs in the same basket and accidentally drop them, they’ll all break. But if you separate the eggs into several baskets, and eventually one of these falls, you will only lose one egg. In the investment world, the name of it is diversification. This is how you can ensure more security in your wallet.

Putting your money in different places is important to spread risk and maximize gains. Thus, when one of your applications is not performing well, it will not be as impactful, as the others can compensate for this loss.

That logic makes perfect sense, doesn’t it?

What you need to take into account are macroeconomic factors and how they influence each type of investment before choosing where you want to diversify.

Speaking of which, we remember the most talked about topic of the moment: the constant and historic drop in the Selic rate, which reflects positively on the real estate sector. In this post, we are going to talk about real estate as an option for you to diversify your portfolio. Check out!

How to invest in real estate  

Even understanding this whole context, many people are afraid and think it is risky to “venturing” – either due to lack of knowledge or convenience – in different types of investments. It is necessary to break this paradigm! To help you open your mind and evaluate some opportunities, we’re going to show you some ways to invest in real estate.

Real estate on the plant

We are experiencing a scenario of falling Selic, which means credit at lower interest rates, as is the case with real estate financing. It is an opportunity to buy a property on the floor plan as an investment, as it may be worth more when completed, in addition to the potential for future rental income.

One of the advantages of buying a property still on the plan is the cheaper cost that it can have in relation to a new apartment that is ready to live.

There is also potential for gains if you bet on a neighborhood with growth potential, which is receiving improvements in infrastructure and transportation, such as subway stations, trains, bus stops, shopping malls and markets.

An important tip, if you are interested in buying property directly with the construction company, is to research its history and strength in the market. See if it is reputable, certified, and has recognized awards from industry rating institutions. Get to know the quality of the properties by visiting a completed unit.

Real Estate Credit Bill (LCI)

Another way to diversify in real estate is to buy LCI bonds. It is very affordable because the minimum investment amount is not high, in addition to providing more security as it is a fixed income investment.

In addition, LCI is classified as a low-risk investment as it is guaranteed by the Credit Guarantee Fund for investments of up to R$ 250,000, and is tax-exempt.

How it works: You lend your money to the financial institution to use in real estate projects. In return, you receive a fixed or post-fixed annual rate of return, as defined at the time of purchase of the bond.

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Real Estate Investment Funds (FII)

Did you know that it is possible to live with rental income without having to buy a property or worry about condominiums, renovations and property tax? We are talking about Real Estate Investment Funds (FIIs).

Real Estate Funds are variable income investments traded on the Stock Exchange. This is an option for those who have the boldest profile and are willing to take on the risks of the stock market in search of greater profitability.

If you invest in FII, you will buy shares in funds intended for the real estate market. Their money, added to that of other shareholders, is used to make businesses such as shopping malls, factory sheds and even hospitals viable.

See how it works:

  • Investing in real estate funds, instead of physical real estate, the money is used to build or acquire real estate, which is then leased or leased.
  • The gains obtained from these operations are divided among the participants, in the proportion in which each one invested.
  • The shareholder cannot exercise any real rights over the fund’s undertakings, unlike the owner of a real property.
  • The minimum amount to invest varies widely. You can even find funds below R$50, for example.

park view city Real Estate Funds are classified into a few different groups:

  • Brick (or income) funds: are investments in real estate, which usually earn from rent.
  • Paper (or receivables) funds: these funds buy securities linked to the real estate market (LCIs, CRIs, FIDCs, among others) in place of the real estate itself.
  • Hybrid funds: it is a mixture of the two – real estate funds with real estate investments directly.

The FII is a good option for those who like the real estate sector and do not have the resources to buy a physical property on their own, in addition to being affordable and generating exempt income. But, like any variable income operation, it is necessary to be aware of market and economic movements.

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