Are you going to finance a property? Check out 9 answers to the main questions of Brazilians | Economy

Those who are planning to finance their own home should hurry: the coming months should be the last ones with the most attractive rates. With the Selic (now at 7.75% per year) in an uptrend, mortgage interest rates should return to double digits in the coming months.

To help with the decision process, the g1 created a guide with the main doubts that Brazilians usually have when buying a property. See below:

  1. Is it more worth buying a new or used property?
  2. Does living in the center of big cities still pay off?
  3. I live alone. Do I buy a one or two bedroom property?
  4. What should I consider when choosing between a house or an apartment in a condominium club?
  5. How to ensure that the property is debt free?
  6. Can I use my FGTS to buy a property?
  7. What documents do I need to have to buy a property?
  8. How do I prove my income?
  9. What fees must be paid when purchasing a property?

“The market for used properties is five times larger than for new ones, but the choice always depends on the client’s needs”, says Gustavo Vaz, CEO of startup EmCasa. If the buyer wants to customize the property, expanding or reducing rooms, for example, the new is usually the best option.

In financial terms, the new property requires more attention from the buyer because it you can only finance the unit with the bank when you get the occupancy permit — document attesting that the residence was built in accordance with the norms established by the local city hall. That is, it is released after the completion of the work. Before that, in general, payments are made directly to the construction company, that is, they do not have the intermediation of a financial institution.

As a result, the interest rate on the financing that will be made upon delivery uses the Selic rate on that date and the buyer’s income at that time as a basis, not the one they had when the contract was signed. Thus, whoever buys a property in the plant now may have to pay higher interest rates when making the loan with the bank.

2. Does living in the center of big cities still pay off?

Yes. However, with the growth of telecommuting after the Covid-19 pandemic, living next to work was no longer a priority when buying a home. For those looking for larger properties at a more advantageous cost, a good option is to expand the distance from the centers and also consider metropolitan regions, such as ABC Paulista, in the case of São Paulo.

Large centers have not ceased to be valued, explains Vaz, as they also bring together restaurants, bars and leisure spaces. The tip, in this case, is to have easy access to these neighborhoods, through highways and the public transport system.

“Like the price of the square meter [fora dos grandes centros] is smaller, people can buy real estate with a larger footage. But there is a limit: when the distance is too great from the point of view of work and social life, change is rarely made”, pondered Vaz.

3. I live alone. Do I buy a one or two bedroom property?

The number of rooms in a property varies according to the client’s needs. But, with the greater adhesion of companies to the home office, Brazilians are looking for properties with an extra bedroom to set up an office, according to specialists.

4. What should I consider when choosing between a house or an apartment in a condominium club?

Houses have never ceased to be attractive and have a variety of models, such as townhouses, villas and condominiums, says Gustavo Vaz, CEO of startup EmCasa. They have the advantage of greater privacy and, in most cases, do not include condominium costs (except condominium fees). The weak point is in the least security.

Club condominium apartments, in turn, offer complete leisure facilities for adults and children. And since they were built recently, they are usually more efficient in financial terms so that the costs are divided between the towers and the final value does not become unaffordable for the tenants, said Vaz. Still, the price of the condominium ends up being a disadvantage for some customers.

The decision varies depending on the buyer’s priorities, income and preferences.

5. How to ensure that the property is debt free?

According to Kristian Huber, co-founder of Loft, it is possible to know the legal status of the property at the Real Estate Registry Office where it was registered. From there, the Certificate of Real Encumbrance will come out, a document that describes the main financial disputes of the property.

Ideally, the sellers themselves offer these documents, but interested parties can also obtain them at the notary’s office.

In addition to property debts, buyers also need to pay attention to possible condominium debts, with the administrators, and Urban Property Tax (IPTU), with the local city hall.

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6. Can I use my FGTS to buy a property?

Yes. The Employment Compensation Fund (FGTS) is a right of workers hired under the Consolidation of Labor Laws (CLT) regime.

To use the fund, you need to:

  • Be of legal age or emancipated;
  • Be Brazilian, naturalized or have a permanent visa in the country;
  • Not having other financing by the Housing Finance System in Brazil;
  • Have at least three years of FGTS releases;
  • Not having another property in an urban area completed or under construction;
  • Do not buy property on behalf of third parties.

The property also needs:

  • Being in an urban area;
  • Go through inspection and approval by the FGTS;
  • Worth up to R$1.5 million;
  • Be used by the holder for residential purposes;
  • Be registered at the Real Estate Registry Office with an impediment to sell.

7. What documents do I need to have to buy a property?

  • RG;
  • CPF;
  • Proof of address;
  • Income tax declaration;
  • Proof of marital status;
  • Proof of income (if real estate financing is available);
  • Copies of financial applications (if any).

8. How do I prove my income?

  • Wage earners: Three last payslips;
  • Self-employed and self-employed professionals: Portfolio of the Regional Council to which it is affiliated and the last three bank statements of an individual;
  • Managing partners of companies: Articles of Incorporation or individual company registration with amendments or minutes and the last three bank statements of an individual;
  • Civil servants, retirees and pensioners: three last proof of payment of salary, retirement or INSS benefit.

9. What fees must be paid when purchasing a property?

In addition to the value of the property itself, the buyer needs to be prepared to pay extra expenses during the purchase of the property. Taxes and notary fees are around 4% to 8% of the property’s value, say experts.

  • Property Transfer Tax (ITBI);
  • Property deed (if purchased in cash);
  • Property registration;
  • Bank assessment (if financed).

About Abhishek Pratap

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