What is a Real Estate Investment Fund?
What is a Real Estate Investment Fund?
The Real Estate Investment Fund is a type of fund that by pooling investors money to invest like a condominium in various segments of the real estate market such as logistic complex, offices, shopping centers, hotels, residence. This type of fund can olso invest in securities. The application of the amount of money is defined by the fund manager according the objective and strategy of each fund. It is a simple and easy way to invest in real estate.
Benefits of Investing in a Real Estate Fund
| Characteristic | Real Estate Fund | Direct investment in Real Estate |
|---|---|---|
| Diversification | With a low initial investment value, investors can purchase different types of assets in various markets simultaneously. | The minimum investment amount corresponds to the value of each property to be acquired, requiring a larger amount of resources and resulting in a more concentrated investment. |
| Liquidity | The negotiation of these assets occurs in the stock exchange what reduce the liquidity risk and bureaucratic complications. | It requires the total sale of the property and transfer of the property through a slow and bureaucratic process, which involves notary registration, payment of ITBI, etc. |
| Real Estate Management | the fund has a professional structure to do the management of resources and assets. | Management is the responsibility of the owner, who is directly responsible for all matters relating to the property. |
| Tax Advantage | income are exempt from taxes for individuals¹ | IRPF of up to 27.5% on income. |
| Risk | With the diversification that these funds provide investing in a several developments minimizes the risk of possible variations in the amount distributed as income and reduce the risk of the investment | Greater exposure to the risks of vacancy and default. |
¹Income distributed by the fund, with at least 50 (fifty) quota holders, to individuals holding less than 10% (ten percent) of fund shares whose shares are traded on the stock exchange or stock market, are exempt from Income Tax (Law 11,033 / 04). For more information about taxation see the fund’s regulations.
Real Estate Investment Fund Legislation
– Lei 8.668/93 – Constituição e o Regime Tributário dos Fundos de Investimento Imobiliário
– Instrução CVM 472/08 – Fundo Imobiliário
– Lei 9.779/99 – Tributação Fundo
– Lei 11.033/04 – Tributação Cotista
– Lei 11.196/05 – Tributação Cotista
– Instrução Normativa RFB 1.022/10 – Tributação dos Fundos de Investimento Imobiliário
– Lei 10.931/04 – Patrimônio de Afetação de Incorporações Imobiliárias
– Lei 9.514/97 – Sistema de Financiamento Imobiliário