Although we all know the importance of money, the average Brazilian does not usually have much financial education. While, in some countries, children learn from school what are the best ways to invest, we generally act in the simplest and least dangerous ways.
For this reason, many doubts arise about the alternatives to invest our capital. Even when buying a property, it is common to not know for sure which is the best option – investment x financing? Want to find out the answer to that question? So, check out our post today!
Advantages of buying the property in cash
Investment is one of the options for those who want to acquire a property. If a person can save for many years on end, he can certainly make a proposal and become the owner of his property. And the main advantage is there – with money in hand, there is bargaining power, that is, it is possible to negotiate good prices and stay away from installments and interest.
However, this reality is very positive – in theory. In practice, almost no one can be saving for so long, after all, you have to live somewhere while your own home does not arrive. What happens is that, without having a property of your own, it is necessary to bear the costs – increasingly higher – of rent, and then it is very difficult to add a large amount.
There is also another problem – as we said, the average Brazilian does not have much financial education. This means that he will choose to invest with low risk, as in savings – which brings very little return – or else he will try to dare in the stock market, where he runs the risk of having big losses throughout the process.
In short, the investment is only good for those who are in no hurry to buy the property and for those who manage to save good money at the end of the month, even bearing the costs of rent and other expenses.
Advantages of doing real estate financing
The flip side of that coin is financing. And, contrary to what many may think, it can be extremely beneficial. The housing market already has plans with payment terms of up to 30 years, allowing the installments to fit into the buyer’s pocket.
In addition, the crucial point of this alternative is that, right after approval by the banking institution, the person can already make a proposal for the property. This also allows for some bargaining power, and makes one quickly get rid of one tremendous headache: rent. This amount that would be “thrown away” every month will then be used to pay the financing installments.
Most of the time, banks allow you to finance up to 80% of the total amount, which means that you initially need to give only the remaining 20% of down payment. However, this can vary from institution to institution, which shows the need for good research before closing with the best company.
And contrary to what many people think, there is no need to finalize the financing if you want to sell your property – just transfer the remaining balance of the financing to the future buyer.
Conclusion between buying the property in cash or taking out a mortgage
As we can see, investment can be a good option for those who are in no hurry, but financing is certainly the best alternative for those who want to own their property as soon as possible. Still having any doubts about investment x financing? Want to leave your opinion? Leave your comment and join the conversation!