buying property for rent: Investment in the real estate market is considered one of the safest over time, as properties rarely lose value and end up being a safe haven for owners. Thinking about it, many people wonder if it is worth buying property for rent .
To understand how this market works and how the acquisition should be carried out, follow the content that been has prepared for you. Learn all about investing in rental properties . Check out the content below!
Is the investment worth it?
For those who want to invest, increase income or live on passive income, the ideal is to undergo an analysis, which will indicate the best types of investment according to profile and expectations. It is worth doing an investor profile analysis to find out if investing in real estate is a good idea.
As buying property for rent is low risk, as it does not lose much value over the years, it is considered a safe investment with a satisfactorily guaranteed return. Let’s explain why.
Caring for the rent
Renting a property , if well managed, actually offers a low risk of default. The contracts have some type of guarantee, such as surety, surety bond or deposit. Thus, if the tenant fails to pay, the real estate agency is responsible for the negotiation, and the owner does not fail to receive the money.
There is also the home maintenance factor. For the owner, buying real estate for the purpose of rent is only worthwhile if he is busy. In the meantime, he must keep the property in good condition, checking that the electrical wiring and hydraulic system are up to date.
This requires a certain regular expenditure, until the property is, in fact, rented. So when buying rental properties, consider keeping an amount set aside for occasional maintenance.
How to choose property to rent?
A good indicator is to observe the movement of the housing market. Construction companies and developers began to launch properties suitable for investment, such as small apartments in a privileged location, with a great tendency to appreciate in the long term.
It is worth remembering that, for those who have plans to live off real estate, observing the market price and the return on investment rates is essential. This can guarantee the profitability — or not — of the acquisition and even indicate more profitable and less risky investments.
Another detail that helps to see trends is to follow the development of transport lines, both highways and bus, train and subway corridors. These are factors that also greatly value the property in the long term and, if the idea is to buy properties for future leases, this must be taken into account.
Compare your investment options
In order for you to be sure that buying an apartment for rent, for example, is really interesting for your purposes, it will be necessary to compare. Therefore, research the income that can be generated from the purchase of real estate and an investment portfolio, for example.
Consider that it is possible to hire specialized management, capable of directing you correctly and making your financial investments reach a yield of 4% per year.
For a leased property to be the best alternative for you, you will need to find one that generates 0.6% per month of the property’s value. So, you have a profitable business option. This is where the investor profile analysis comes in to find out if renting is the best option.
Discover the real estate market
It is necessary to inform yourself about the real estate market before closing a deal, as well as to know what are the expectations of gains from real estate leasing. A tool that helps is the FipeZap index, which measures the sale and lease value in cities across the country and can be used as a reference.
In addition, it is important to check the IGP-M, responsible for measuring rent inflation, and to know the expenses of a real estate financing. These are essential steps to understand if the investment will bring the expected return.
Can you rent financed property?
For those who made the purchase of a financed property and want to know if the lease can be carried out during the financing, the answer is yes. The property can be leased, unless it has been acquired through the Minha Casa Minha Vida Program (currently Casa Verde e Amarela), which does not allow commercial operations in the properties.
Another point of attention for those who want to buy properties for rent is in relation to the Fundo de Garantia por Tempo de Serviço (FGTS), since, in order to use the FGTS balance for the down payment of the property, the legislation requires that the buyer is, in fact, , the resident.