Consortium Comauto Consortium Comauto/Disclosure When talking about a real estate consortium, many people immediately think about buying a house or a ready-made apartment. However, the letter of credit of this modality can meet different objectives, such as acquiring land, building, renovating or purchasing a new, used or off-plan property. This variety of possibilities makes the consortium an alternative for those who want to organize a real estate project in a planned manner, respecting their own budget and the deadline necessary to transform the objective into reality. According to the rules of the Consortium System, the participant of a group referenced in real estate can use the credit to acquire a built or planned property, buy land or carry out construction or renovation, subject to the contractual conditions and the approval of the administrator. The same planning, different possibilities The first step in hiring a real estate consortium is to understand which project the client wants to carry out. From this, it is possible to choose a letter of credit compatible with the estimated value and installments appropriate to your financial reality. Discover some of the possibilities: Buying a ready-made house or apartment The letter of credit can be used to purchase new or used residential properties, as long as the documentation and conditions of the property are in accordance with the administrator's requirements. After consideration, approval of the analysis and presentation of the necessary guarantees, payment is made directly to the seller. As the negotiation takes place with resources equivalent to a cash purchase, the buyer may also have more strength to negotiate the value of the property. Acquisition of off-plan property Anyone who is planning an achievement for the next few years can also consider purchasing an off-plan property. In this case, it is important to previously check the stage of the project, the construction company's documentation and the rules established in the consortium contract. Purchase of land The real estate letter of credit can also be used to purchase land. This possibility serves those who have not yet found a ready-made property with the desired characteristics or prefer to build a personalized project. Before purchasing, the land must undergo the documentary and evaluation analysis required by the administrator. Construction on own land Anyone who already owns land can use the consortium to plan the construction of the property. The release of resources normally follows the stages and schedule of the work, upon presentation of the requested documents, projects, authorizations and evidence. Therefore, in addition to correctly choosing the value of the letter of credit, it is important to create a detailed budget for the construction, considering materials, labor, projects, fees and possible unforeseen events. Renovation or expansion Depending on the conditions of the group and the contract, the letter of credit can also be used in renovations and expansions. This possibility can range from structural improvements to more complete property modernization projects. The use of resources, however, must follow the administrator's criteria, with budget presentation, documentation and proof of execution of services. Repayment of real estate financing The credit covered can also be used to pay off a real estate financing held by the consortium member, as long as the property and the operation belong to the same category as the consortium and meet the rules set out in the contract. Each situation must be analyzed individually before contracting and using credit. How does contemplation work? In the consortium, a group of people contributes monthly to form a common fund intended for the acquisition of goods. Over the period, participants can be selected through a draw or through bid offers, depending on the rules of each group. Contemplation does not have a guaranteed date. Therefore, the real estate consortium is best suited for those who can plan the conquest and do not need to use credit immediately. Once awarded, the consortium member goes through the stages of analysis, presentation of documents and approval of guarantees. Only after meeting these requirements will the credit be released for the chosen purpose. Consortium does not have interest on financing Unlike financing, the consortium does not charge interest on the contracted amount. There are, however, administration fees and other components that may be provided for in the contract, such as reserve funds and insurance. For this reason, before contracting, the consumer must analyze the total cost of the plan, the readjustment index of the letter of credit, the term, the contemplation rules and the conditions for using the credit. It is also important to remember that the value of the letter and installments can be updated periodically to monitor the appreciation of the reference asset, according to the index established in the contract. Planning must start by choosing the letter of credit. To prevent the contracted amount from being insufficient, planning must consider not only the current price of the property or work, but also possible adjustments and additional expenses. A construction project, for example, requires a different survey than that carried out to purchase a ready-made property. Anyone who intends to purchase land and build later needs to consider both stages in the budget. With the support of a specialist, the consumer is able to assess: the appropriate value of the letter of credit; the group’s deadline; the value of the installments; the bidding possibilities; the conditions after contemplation; and the necessary documentation for each purpose. Consórcio Comauto offers personalized service With experience since 1972, Consórcio Comauto offers plans for different real estate objectives and personalized service to assist the client from