Is it worth selling the property and investing the money?  Discover - 01/14/2022

Recently, I made the decision to sell my apartment and invest the amount in financial investments.

Doing this might be good for some people, but not all.

In today’s column I explain the four necessary steps for you to know if, in your case, it’s better to have your own property or invest the money.

1. Find out how much you would get paid for your property

The first step is to know how much you would receive, approximately, on the sale of your property.

To get started, you can search for similar properties on the internet, in the same region as yours, and go to step 2.

But if you want more accurate data, just advertise for free on sites like Quinto Andar, Em Casa or Loft, and wait until you receive a proposal. Only then will you be sure that someone would pay that price for your house or apartment.

With this data in hand, it is necessary to deduct the realtor’s commission (generally, from 6% to 8%, depending on your State) and the Income Tax (from 15% on the profit).

For example, if you are going to sell an apartment in São Paulo for R$500,000, you will probably pay R$30,000 to the real estate agency (6% of R$500,000).

On top of the remaining amount (R$ 470 thousand), the profit is calculated. Let’s say you bought the apartment two years ago for R$400,000. In this case, the profit would be R$ 70 thousand.

Therefore, your IR would be R$ 10,500, and you would receive a net value of approximately R$ 460,000 for the property.

2. Estimate monthly profitability

The second step is to estimate how much monthly income you could get by investing the money you would receive from the sale of the property. You can invest in a safe application, such as Tesouro Direto, or in a slightly bolder one, such as a real estate investment fund.

Treasury Direct is currently yielding 5.67% a year in addition to inflation. By investing BRL 460 thousand, there is a return of BRL 26 thousand per year, or BRL 2,173 per month, on average.

In real estate funds, it is currently possible to have a return close to 1% per month, which would give around R$ 4,500.

Of course, you can choose riskier investments, but if the objective is not to speculate, but to use the money to pay your future rent, these two investments fulfill this function well.

3. Understand the invisible cost of your property

The third step is what most people forget about. To know if it is worth selling your property and investing the money, it is necessary to compare the cost of renting with the cost of living in your property.

The cost of having a property of your own is not limited to maintenance expenses or the condominium.

It is necessary to include in this account the amount that you are not earning by not keeping your money invested.

Let’s continue with the example of the person who would have R$ 460 thousand to receive for the apartment. We saw that she could earn about R$4,500 a month if she invested the amount in real estate funds.

Let’s say that this person, living in their own property, spends an average of R$ 2,000 per month on condominium, IPTU, maintenance and home insurance.

In this case, the cost will be BRL 2,000 plus BRL 4,500, which equals BRL 6,500 per month.

The R$4,500 is what I called the invisible cost, but in economics it is known as the opportunity cost. It’s nothing more than the money you could receive monthly if you weren’t invested in the property.

4. Compare with the cost of rent

Now comes the easiest and most interesting part. Look for houses or apartments for rent that have a monthly cost equal to the total cost of your own property.

In our example, it would be the case of searching for properties in which the rent, IPTU, condominium and real estate fee add up to R$ 6,500 per month.

From there, just decide what you prefer: keep your current home or live in one of those you researched.


Remember that investing in real estate funds has risks. A FII that currently pays 1% per month can, from one month to the next, reduce or increase this remuneration. That’s why it’s important to diversify.

Also don’t forget that maintaining your property also has risks. Your apartment can be devalued if, for example, an overpass is built in front of it, increasing noise and pollution in the area.

But it can also be valued if it improves the quality of life in its surroundings.

each one’s question

You saw that in both scenarios (owning a property or living on rent) there is some degree of unpredictability.

In addition, this question depends a lot on the lifestyle of each one. For a family that intends to live in the same place for a long time, having their own property tends to be safer.

For those who don’t mind if they need to move from time to time, renting can be more interesting.


Do you have any questions about investing in general? Send it to my email: [email protected] Your question may be the subject of this column in the future.

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