Real Estate Consortium know the benefits and risks before joining, Real estate consortium is an increasingly popular alternative for those looking to purchase a property.
Certainly without resorting to conventional financing, it works as a kind of “group savings”, where participants contribute monthly.
In this way, the consortium members form a common fund, used to grant letters of credit.
Furthermore, as with any investment, it is essential to understand the advantages and risks before entering into a consortium.
The administrator certainly organizes the real estate consortium, dividing the total value of the property into a determined number of monthly installments.
Consortium participants pay these installments over a period of time, and each month the administrator holds draws or bids to choose who will receive the letter of credit.
However, this letter of credit is equivalent to the amount required to purchase the property.
The main features of the creal estate consortium include, unlike bank financing, the consortium does not charge interest on the installments, only an administration fee.
Every month, one or more participants are contemplated, if someone wants to anticipate the contemplation, it is possible to offer bids, which work as a kind of “auction” internal.
The payment term can vary considerably, depending on the plan chosen, and can reach 180 months or more.
Real estate consortiums offer a series of advantages for those who want to buy a property with planning and without having to pay high interest rates.
Savings on Interest, as the consortium does not charge interest, only an administration fee, it can be an economical option compared to traditional financing.
This makes the value of the installments more accessible and, in the long term, more financially advantageous.
Financial Discipline, joining a consortium implies a long-term commitment, which helps with financial discipline.
For those who have difficulty saving monthly on their own, the consortium is a good alternative, as the installments are mandatory and encourage the habit of saving money.
Planned Acquisition, the consortium is ideal for those who want to acquire a property, but are in no hurry.
Therefore, as there is no fixed deadline for contemplation, the buyer can plan the purchase of the property over the years, organizing his financial life no rush.
Possibility of Bids, for those who have a financial reserve, it is possible to offer bids to try to anticipate contemplation.
The administrator or the consortium group itself can define the bid value, which generally represents a percentage of the letter of credit.
Despite its advantages, interested parties must also evaluate some risks and disadvantages of the real estate consortium before joining.
Uncertainty in Contemplation Contemplation is not guaranteed on a specific date, this means that you may have to wait several years until you are contemplated.
For those who need the property urgently, this uncertainty can be a problem.
Administration Fee Although there is no interest, consortiums charge an administration fee that can vary greatly between administrators.
In some cases, this fee can end up making the final cost high, especially on long plans.
The loss of purchasing power occurs because, as the letter of credit is determined at the time of joining the consortium, the value of the property may increase over the years due to inflation.
Therefore, if this occurs, the letter of credit may not cover the amount needed to purchase the desired property, requiring the consortium member to make an additional contribution.
Fines and Penalties, if the consortium member is late or fails to pay the installments, there may be fines or even exclusion from the consortium.
Furthermore, withdrawing from the consortium may imply additional costs, and the administrator may take a long time to refund the installments paid.
The digitalization of the financial market has brought applications that facilitate the monitoring of real estate consortiums, allowing you to monitor balances, make bids and access contract information
Itaú Consortiums the app allows you to monitor the progress of the consortium, check the draws and make bids directly from your cell phone.
Bradesco Consortiums With the app, you can view the consortium statement, check the draw dates and place bids.
The Magazine Luiza app provides a platform to monitor your consortium and offers the possibility of simulating new plans
These applications are useful both for those who are already in a consortium and for those who are considering joining.
Through them, it is possible to follow all the information in a practical and accessible way.
In conclusion, a real estate consortium can be an excellent alternative for those who wish to purchase a property with planning and without rushing.
However, it is essential to carefully evaluate the pros and cons and be aware of the risks involved. Opting for a consortium is a decision that requires financial discipline and patience.
Itaú Consortiums
Bradesco Consortiums
Magalu Consortium
Finally, for those seeking security and wanting to plan a long-term property acquisition, this could be an interesting option.
