Today, many people are looking for ways to earn extra income to supplement their household income. One of the main objectives for this is to be able to balance the household bills, due to the situation of economic fragility that the country faces, with the high prices of basic items. In this sense, there are several ways to generate extra income, some that can be simpler, others that require more studies, attention and also money to make an initial investment in the modality.
The latter is the case, for example, of Real Estate Funds, an investment modality that has gained prominence in recent times, as they allow a considerable return in relation to the amount initially invested. One of the reasons why it is sought after is that there is a possibility that shareholders receive returns on a regular basis.
Option to invest in Real Estate Funds
Firstly, it is important to highlight that those who wish to invest have the option of investing in both ‘paper funds’ and ‘brick funds’. The difference between them is that the so-called paper funds are related to fixed income securities of the real estate sector in the portfolio, while the second mode is related to physical properties in the portfolio.
In addition, another issue is that current legislation requires Real Estate Funds to distribute at least 95% of profits to those who are shareholders. In this way, a good part chooses to distribute the income on a monthly basis. In addition, income is exempt from income tax.
According to the chief analyst of investment in Real Estate Funds at Suno Research, an analysis house, it is possible to receive a monthly income of BRL 1,000 with an investment that varies between BRL 100,000 and BRL 150,000, depending on how the person chooses to make their investment.
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And who doesn’t have that money?
For those who do not have this total amount to make the investment in one go, it is possible to choose another path, which, in turn, can take a little longer.
Thus, the path is to make monthly contributions and use the dividends generated by the funds to reinvest them.
However, it is worth remembering that the person who wants to invest must be aware of the factors that can change the scenario in this area. This is because the market is volatile and suffers from changes in elections, low or high interest rates, among other issues.
Finally, it is important to point out that the information provided here is not an investment recommendation.
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