You are preparing to take an important step in your life: to achieve the dream of homeownership. Therefore, there is nothing more natural than doubts to appear when making direct financing with the construction company. After all, is it a good deal?
The truth is that many are mistaken with the ease of signing a contract, and then problems start to appear. Most companies only offer land purchase options and, when there are good houses or apartments, they usually finance only a small entry to the property.
In today’s post, you will learn about the biggest complaints of this method and what the safest solution for your investment is. Read on!
4 disadvantages of doing direct financing with the construction company
1. High interest
Every care is taken just before closing a deal and studying all the offers, as the risk of default is high. According to Marcelo Maron, personal finance consultant, the interest on this type of financing reaches 27% per year (while the bank’s rate is 12%).
2. Mortgaged property
Some construction companies do not require proof of income, which may seem like an easy task. However, this only happens because the property is mortgaged by the company. Thus, in the event of non-payment, the resumption of the asset is relatively quick.
3. Inability to use FGTS
Let’s assume that, for some reason, you lose your income and financial stability. In this case, it will not be possible to use the FGTS (Guarantee Fund for Time of Service) to pay the overdue installments. The system also does not allow you to use this money to signal the purchase of the property.
This is a major disadvantage because, in addition to making it impossible for part of the investment to be made in cash, taking advantage of discounts and softening the installments, it also prevents the FGTS value from being better used, since its income is well below other traditional applications.
4. Lesser amortization terms
Compared to those offered by banks, financing provided by construction companies has shorter financing periods, which increases the value of monthly installments.
In addition to all these disadvantages, financing contracts offered by construction companies for properties in the construction phase, even if they are in the process of being completed, are adjusted monthly by the INCC (National Construction Cost Index), which can generate an inconsistency in the compromise of income of who is making the investment.
Payment alternatives to acquire a property
To escape these disadvantages, some financing products can help when buying the property, but it is essential to assess the suitability of the institution that offers them. We present the following two main ones.
Real estate consortium
In real estate consortia, you choose a value for the letter of credit and start paying your installments. It is extremely important that it is managed by a trusted financial institution, such as your bank, as in addition to you, other individuals will also participate in the consortium.
This, in turn, carries out draws regularly, to indicate who will use the letter of credit available in the period. In addition to the sweepstakes, it is also possible to place a bid – a larger payment, to be considered sooner.
This is a payment model, however, which must be planned in advance, as it is not possible to predict when it will be drawn or if it will have the highest bid in that particular month.
Direct financing with real estate
If the financing bureaucracy scares you, know that when they are managed in real estate, they become much simpler and coordinated by specialists. The CrediPronto, for example, is a consulting firm that works with real estate on the credibility of two giants of the financial market and real estate – Itaú and Lopes.
So, when financing a property in real estate – in addition to avoiding the high-interest rates of construction companies, short financing terms, and other disadvantages – you also have the peace of mind of dealing with reliable companies.
The entire process is done in one place quickly and easily, the financial structure that supports this type of financing allows the contract to be customized according to the buyer’s possibilities.
In some real estate financing, such as those managed by CrediPronto, the credit analysis is done within 24 hours, with the financing of up to 90% of the property, which can be both residential and commercial.
Tips for secure financing
Caixa Econômica is the bank responsible for most residential financing. Their interest rates are considered low, but at the same time, the bureaucracy to obtain approval of documents, appraisal of the property, buyers and sellers is very large.
If you intend to purchase property safely and without annoyance, the recommendation is to seek help from a consultancy focused on real estate financing. Today, this type of service offers the possibility of financing a property with a term of up to 360 months.
The good news is that there is no overload of interest that is charged by construction companies. The installments are decreasing, that is, they can decrease over time, according to the table SAC – Constant Amortization System.
In addition, an advisory is able to make the documents be analyzed more quickly (banks usually outsource this part, so the delay is greater). For example, credit analysis is done within 24 hours.
Another advantage is the acquisition of insurance such as MIP (Death and Permanent Disability) and DFI (Physical Damage to Property). The latter covers any type of damage caused by natural causes to the property.
As you saw doing direct financing with the construction company is not a good idea. Interest is high and the ease of negotiation can mean future headaches, some details such as the incidence of INCC are often disguised and become real headaches for those who want to plan an investment without compromising their monthly flow of expenses.
Before making a final decision
For this reason, before making a final decision, look for better alternatives to turn your dream into reality, evaluate which payment model has less impact on your monthly expenses and more transparency so that you can invest with peace of mind and security.
These, however, are just a few of the questions that need to be answered before financing. Are you curious about the different possibilities and details for making more advantageous financing?
So take advantage and discover the main questions and answers about real estate financing. We made a special post about them to make you more relaxed in your analysis.