Advantages in Investing in Real Estate Funds

IR exemption and source of extra income

Security and valuation that a real estate investment has become a Brazilian investment tradition in this sector. Real Estate Investment Funds (FIIs) fulfill the same role, but in a new format, in a much easier way and without worrying about bureaucracy.

Whether to build and sell, rent, resell or speculate, the real estate sector is always seen as one of the most traditional forms of investment that exist.

Real Estate Funds are similar to traditional Investment Funds, where all funds raised are managed by a manager. It is his responsibility and that of his team of specialists to analyze the market and seek the best investment options.

Another similarity between the products is the split of the fund into quotas. That is, when investing in Real Estate Funds you acquire a portion of the fund and have the same rights and income as other shareholders.

Unlike Investment Funds, Real Estate Funds are traded on the Stock Exchange. Therefore, the way to apply in these products is similar to buying and selling shares. In the market, there are two possibilities to invest in these products. Check them out:

• Primary offer: the fund's shares are issued and made available to the market for the first time;

• Secondary market: quotas traded on the Stock Exchange by other investors who wish to sell the assets.

All trades are made through a Home Broker.

When investing in these securities, the investor can profit by the appreciation of the shares, selling his assets at a price higher than the one they were purchased, or by distributing the profits to the shareholders.

Questions and answers about Real Estate Funds

What are Brick Real Estate Funds?

It is the most common, in which you invest in real estate based physical assets.

What are Real Estate Paper Funds?

In the Papers, the funds invest mostly in fixed income assets linked to the real estate sector, such as certificates of real estate receivables (CRI´s) or in other real estate funds, also known as Funds of Funds (FoF).

How much can I invest in Real Estate Funds?

There are funds in which, with less than BRL 100.00, it is already possible to be a partner.

The advantages to invest in FII!

By law, the Real Estate Fund is required to distribute 95% of the income recorded in the semester. And, for the most part, this payment is monthly.

Dividends paid are exempt from income tax for individuals in funds above 50 quota holders and, over sales, 20% of the income tax is charged.

With FIIs, you guarantee your share of investment by investing less than BRL 100.00. Being able to buy as minimum as 1 quota.

Through FIIs, its application is exposed to different segments, sectors and tenants, diluting risks.

Advantages in choosing a professional consultancy

When investing in Real Estate Funds, you have professional advice on your investments. All decisions are made by specialists who analyze the market and look for the best solutions.

Extra income source

It allows the investor an extra income, since normally the Real Estate Funds distribute the income monthly to the quota holders.

Facilities

It allows you to invest in large enterprises with an affordable value since it is possible to apply from a quota.

Find out how to participate in the main properties in Brazil with zero bureaucracy and receiving monthly income.