The political-economic instability that Brazil and many countries in the world are experiencing raises doubts and fears in investors, especially those who do not like financial market risks and prefer to apply their income to safer sources of income. In 2016, the financial crisis hit practically all sectors, in the real estate market this was reflected in the price freeze. For homebuilders and developers, it was a time to rethink profit and create new ways to attract buyers.
This year, the prospects for those who wish to invest in real estate are even more positive because, in addition to the competitive price for the purchase there are consistent signs of re-heating the market. Among the signs are the fall in inflation – which in 2015 was 10.7%; in 2017 should be around 7% and in 2018 should not exceed 5%, according to the Central Bank’s perspective. Another point that warms the market is the drop in interest rates, estimated at 11% (against the current 14%) and the consequent GDP growth – which should go out of the red and close the year with a high of around 1.5%. All are factors that underpin this optimism of real estate consultants and experts, increasing purchasing power and leading the final buyer back to shopping.
That is, 2017 is the year to acquire real estate and land with values of “crisis”, below inflation, to profit in the short and medium term, with the reheating of the sector and the end of the recession.
Why invest in real estate?
The main attraction for those who invest in real estate is the security of return of the business. According to the latest Demographic Census of the Brazilian Institute of Geography and Statistics (IBGE), conducted in 2010, the Brazilian population surpassed 190.5 million inhabitants and should reach 259.8 million in 2050. A large part of the population is concentrated in large and medium-sized cities – where the greatest employment and income opportunities are found – and it is in these regions that the real estate market becomes increasingly attractive, especially in capitals and large centers.
The preference for living close to work raises the price of real estate in the central regions of cities, generating a real profit in a few years.
However, in large cities or growing cities, such as Florianópolis, the Center and the surrounding neighborhoods are already saturated, and the real estate values are quite high. In these cities, we need to look at the developing regions with the greatest potential for expansion – both demographic and economic. In the capital of Santa Catarina, this oasis of growth is the north of Santa Catarina Island, which has a large number of startups and technology companies, including Sapiens Park – the biggest technological center in the country. the quality of life are attractive that bring, each year, new residents to the Island of Santa Catarina.
Tips for anyone who wants to invest in real estate
The horizontal growth of urban areas makes investment in land around the central regions a safe and highly profitable application in the medium term. The Internal Rate of Return (IRR) of the land is estimated to be around 41% per annum, while saving does not usually exceed 7% pa, and the CBD pays on average 10% pa. Study the master plan and know the growth prospects of the region where the land you want to acquire is located.
Real estate in the plant
This category usually yields between 20% and 30% as early as the first two years after the works start. Calculate the net income considering all maintenance fees up to the sale, 6% on the sale price (on average) of the brokerage fee, taxes and legal expenses of the purchase and sale transaction, the 15% capital gain (for individuals); possible losses due to the opportunity cost of capital.
Real Estate Ready
The used ones can be “stoned” and resold with great profit margin. If purchased for rental, you need to study the dynamics of the city and the neighborhood and the profile of the residents of the region – for example, in a typically university neighborhood, it is not worth investing in large and luxurious real estate, prefer small flats and apartments .
Construction of houses for sale
This modality is the great move for those who want to multiply the equity. However, it is essential to have a responsible and reliable team – from real estate consultants, who will ensure a good deal on the purchase of the land, to the mason specialized in finishes, who will deliver the work in the way and in the term combined.