You have probably heard that investing in savings is not the best way. But, after all, how to decide the best way to apply your resources? With so many options on the market, it is normal to be confused about the choice of the most suitable types of investment for your profile.
If you started by researching options in the market, know that you are on the right track! In fact, assessing new trends in real estate financing versus savings interest can help when deciding. In this article we will show a little more about these alternatives. Continue reading and check it out!
How is the market today?
Considerations about the situation of the financial market and real estate allow us to define the best opportunities to make an investment.
According to data from a CBIC survey, the real estate sector in early 2020 showed growth of 26.7% compared to the same period last year. Even with the economic downturn scenario, the sector showed a rapid recovery due to an adaptation to digital dissemination environments. The long-term trend is for this segment to continue on a safe evolution path.
As for the financial segment, there is a lot of uncertainty regarding the performance of companies in the stock market. Even the more traditional branches of investment, such as savings, Treasury Bills or Treasury Direct, were impacted by the tendency to reduce interest rates in the market that remunerate such assets.
What are the advantages and disadvantages of saving?
Savings still attract investors because of the simplicity of operating this type of business and also because it is exempt from income tax. However, there are some negative aspects that must be considered.
The first point is that she has no daily income, causing the remuneration to occur once a month. So, if the redemption is made on any other date, there will be no return.
Another important aspect concerns income. Its profitability sometimes does not cover the value of inflation – which refers to the loss of value of money over time. This means that, at the end of a period of strong inflation and low Selic rate, you end up with the money being worth less than when it was deposited.
What about real estate financing?
The first point of prominence in real estate financing refers to the cost of interest. With the Selic rate at its lowest historical level, there is no better time to get financing approval. Another important issue is that, at a time with so many uncertainties, investing in real estate provides the necessary property security.
The issue of profitability is also a point to consider. The rental values, in addition to being very attractive, are adjusted for inflation and adjusted annually. Thus, in addition to the long-term appreciation of this type of investment, it is also possible to obtain short-term returns. As for the negative aspects, it is possible to mention the capital immobilization, however, this can also be interpreted as security and protection of resources.
What to choose?
When considering real estate financing and savings interest, it is clear that there are excellent reasons to buy a property, and especially at the present time.
Several aspects can contribute to finding a property that is accessible and meets your profile. Whether to use as your own home or as an investment option. It is important to take advantage of this moment in the market, when savings interest is not so advantageous, and take another step towards financial independence.
Did you like our content? Have you made your decision? So, the next step is to decide whether to choose a house or apartment. Check out our article on the topic and get all your questions answered!