That home ownership is a dream for many peoples, we already know. But which is better, buying property or investing?

One thing that tends to be common among those who want a home and those who want to make investments is the search for security.

And so that you can make smart decisions regarding your money, we have prepared this article so that you understand the difference and advantages of each option.

What’s better: buying property or investing?

This is not a simple question to answer, so let’s understand what involves choosing to buy property or invest.

First, it’s important that you think about your financial organization , because in any case, you’ll need to have your budget planned and organized.

Buying a house or apartment involves several expenses, both at the time of acquisition and afterwards.

And starting to invest also requires planning, as investments need to be made regularly and recurrently to have a good result. In short, there is no single answer and no magic formula.

You need to analyze your goals and understand what you want to achieve in the future.

One thing that needs to be clear is that buying your own home is not an investment . When you apply your money it yields, when buying a property the amount you paid does not increase. Of course, the property can appreciate, but the logic is not the same.

And if it’s a loan, you still have to deal with the interest, and the asset will only be yours after it’s paid off.

Already in an investment, the amount applied multiplies, you invest for a while and get your money back corrected by interest.

think long term

When we talk about financial planning , the point is that regardless of buying property or investing, you need to think about the future.

There are many ways to acquire a property: financed, payment in cash, buying land to build on, or even making a consortium. And as we said, when buying a property you are not making an investment.

But you can choose to invest to buy a house. That’s right, in that case you invest so that your money income and then you can acquire the property.

One of the ways to do this is to hire a private pension plan , which has several long-term advantages. You invest your money, and when you redeem it, you use the value to purchase the house.

Is it possible to buy a house to invest?

A lot of people buy a property as a form of capital gain, an extra income. As in the case of those who put the house for rent .

However, it’s important to know that you don’t always have to choose between buying property or investing.

The point here is that having something to call your own, a physical product, brings greater security to buyers. And because it is traditional, it ends up being a widely used option. But, as with any investment, there are risks involved and you need to study the real estate market to make decisions.

Some people buy real estate as a way to invest and not for their own housing. But there is a way to apply with real estate investment funds , known as FIIs. In this type of application, a group of investors come together, as if it were a condominium. This group applies in different real estate sectors.

It is possible to invest in buildings for rent, developments, constructions, commercial buildings. Some examples are shopping malls and corporate buildings and logistics warehouses.

Each participant is entitled to one or more shares, and the profit from the application, known as dividends, is distributed monthly according to each participant’s share.

In this case, the investor is investing in real estate without having to buy one directly and not having to bear the costs of paperwork and transferring the property, for example.

What’s the best choice between buying property or investing?

In fact, the best choice will depend on your purpose. But, consider the advantages of investing.

Making an investment is putting your money to work for you, being able to plan not only to buy a house. You can program your retirement , for example, or save money to pay for your children’s college.

But it all depends on your profile and your goals. Buying one or more houses to live on rent is a plan that many people consider good and safe. But it’s worth remembering that there are other ways to invest in your future, simpler and safer.

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