Home Real Estate Everything To Know About The Real Estate Consortium And Why You Should Consider It

Everything To Know About The Real Estate Consortium And Why You Should Consider It

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The real estate consortium is a modality that has gained a lot of market in recent years. It is very similar to financing in its model of paying in installments over a long period. However, their similarities end there. Many people consider the consortium a more exciting way than financing as it does not require a down payment.

In addition, the consortium installments do not have an interest rate linked to them but an administration fee that is much lower than the interest practiced throughout the market. The total amount paid at the end of the installments is much lower in a consortium than in financing.

What Does The Consortium Consist Of?

However, those who make a consortium need to have one more ally, patience. The consortium model consists of an institution that brings together people with a common interest, in this case, the desire to buy a property. These people pay the institution a fixed installment over some time, and each month, some of them are drawn and receive the pre-agreed money to use in some real estate product.

This period is usually less than when a loan lasts, about 5 to 15 years. If the young person still doesn’t have significant expenses, this buyer is not usually in a hurry to receive credit from the consortium. That way, he doesn’t have to worry about not being one of the last ones to be included in the draw and can opt for this payment alternative to purchase his first property.

However, making a bid is another way to be contemplated more quickly. The action consists of offering a percentage of the remaining amount to the institution so that you are the recipient of the month, winning whoever offers the highest percentage. This amount given in the bid is then deducted from the remaining debt.

What Are The Necessary Precautions For Hiring The Real Estate Consortium?

When researching real estate consortium options, you must make sure that the administrator is registered with the Central Bank to guarantee the security of the contracted location. It is also essential to be aware that the real estate consortium usually lasts 10 to 15 years. What should be considered is that you may be drawn at the beginning or after years, so this is the best option for those who are also not in a hurry to purchase the property. Remember that even being drawn and acquiring the property, it is mandatory to continue paying the consortium installments until its end.

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