When you think about buying property, what is the first thing that comes to your mind? It is certainly about the payment method, whether in cash or financed. Anyone who believes that sight is always the best choice is mistaken. Read the next lines carefully and find out which option is best for you.
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First of all, let's explain the terms highlighted in the topic in question. When it comes to a property in cash, it refers to the total payment of the property.
On the other hand, when it is a financed property, it is the partial amount paid by the bank, which will be charged in monthly installments to the customer.
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What is the cheapest way to buy a property?
Without a shadow of a doubt in sight. Since in addition to no interest accrual, it also has an excellent discount, sometimes up to 10% of the total value of the property. A purchase of the property it must be thought about and studied, especially when the aim is not to have high rates of devaluation over the years.
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However, it is still not the best option according to experts. They recommend using a very popular strategy, which will be seen in the next topics.
read more: Real estate financing: which bank should I choose?
What should you know before buying a property?
Some factors make choosing a property relevant, not only the final budget or location, but also legal issues involving the purchase of the property.
It is extremely important to check the state of conservation of the property, the previous owners and the neighborhood in general; as well as the quality of life on the street in question.
Whether you like it or not, it is a decision that will influence your entire life. Furthermore, the most important decision: buying property in cash or in installments?
Buy property in cash or in installments?
Before making a cash purchase of the property, it is worth investigating the positive and negative points of the purchase. In general, cash purchases are more advantageous, on the other hand, it can lead to debt and more debt.
Since when you buy a property, it is necessary to carry out finishing work without taking into account bureaucratic fees. Many make the mistake of investing all their money in purchasing the property, and being left with nothing.
Therefore, it is harmful, especially when purchasing properties in medium/high standard condominiums. Investing a lot of money in this may not be a good idea.
On the other hand, the purchase of the financed property may result in high interest, but it is still more advantageous than renting, since at the end of payment of the installments, the property belongs to the client.
In addition to the possibility of amortizing installments or using the FGTS value to amortize in the studied period, at the end of the year.
And then, what to do?
The best option, according to experts in the field, is to carry out the process in a hybrid way. That is, make a substantial down payment and finance the rest. Even if you later use the remaining capital to pay off the installments.
Since the Selic rate has fallen in recent years, making property financing a more advantageous option. That is, neither A; nor B.
It is recommended to make the purchase in a 'double' way, and as soon as you have fully stabilized and want it, pay off in full and finalize the purchase of the property.