What is the difference between the SAC and Price amortization systems?

In the SAC (Constant Amortization System), the principal repayment is fixed and interest decreases, so installments start higher and gradually fall. In the Price system (fixed-payment schedule), installments are fixed from start to finish, but you pay more interest overall.

How much rent can I charge for a property?

The typical rental yield ranges between 0.3% and 0.6% of the property value per month. A property worth R$ 500,000 is generally rented for between R$ 1,500 and R$ 3,000/month, depending on location, condition, and local demand.

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Finance a Property or
Invest the Money?

Compare both scenarios with real numbers: finance a property, rent it out and invest the remainder vs. investing all your capital. Find out which one builds more wealth.

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🏠 SAC & Price Systems

📊 Month by month Simulation

💡 Rent + Vacancy Realistic

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HOW IT WORKS

Two scenarios, one answer

The simulator compares investing everything vs. financing a property to rent out, accounting for all real costs and revenues.

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Scenario A: Invest Everything

You take all your money (e.g., R$ (Brazilian reais) 500,000) and invest it at a fixed monthly rate. No headaches, no tenants, no maintenance. Compound interest working for you.

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Scenario B: Finance + Rent

You put down a deposit (e.g., 20%), finance the rest, rent the property out to help cover the installments, and invest what is left over. The property appreciates and the rent offsets the financing cost.

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Detailed Month-by-Month Simulation

The simulator calculates the wealth trajectory for both scenarios, taking into account: compound interest, amortization (SAC or Price), property appreciation, rental income with vacancy rate, maintenance costs, property taxes, annual rent adjustments, and inflation. All so you can see which scenario truly builds more wealth.

KEY CONCEPTS

Why financing can be worthwhile

Leverage

With a 20% down payment, you control an asset 5x larger than your initial investment. If a R$ 500,000 property appreciates 5%, that is R$ 25,000 in gains on only R$ 100,000 invested.

~9%

Financing Cost

The mortgage interest rate is the main obstacle. The lower the rate, the harder leverage works in your favor. Rates below 9% p.a. tend to favor financing.

0.5%

Rent as an Ally

A rental yield of 0.5% of the property value per month significantly reduces the effective cost of financing. On a R$ 500,000 property, that is R$ 2,500/month helping to cover installments.

FREQUENTLY ASKED QUESTIONS

Clear your doubts

Is it worth financing a property to rent out?

It depends on several factors: the financing interest rate, rental yield, vacancy, property appreciation, and the return on alternative investments. Generally, if the financing rate is lower than the property appreciation rate plus rental yield, leverage may make it worthwhile. Use the simulator to compare using your real numbers.

What is real estate leverage?

It is the effect of controlling a high-value asset with a smaller amount of capital. By financing a R$ 500,000 property with a R$ 100,000 down payment, you have 5x leverage. All property appreciation (on R$ 500,000) benefits you, even though you only invested R$ 100,000. It acts as a "lever" that amplifies your gains (and your risks).

SAC or Price: which is better?

With SAC, installments start higher and decrease over time. You pay less interest overall. With Price, installments are fixed, making budgeting easier, but total interest cost is higher. For landlords, SAC tends to be better because installments fall over time while rent tends to rise.

What is a vacancy rate?

It is the percentage of time the property sits without a tenant. A 10% vacancy rate means the property goes an average of 1.2 months per year without generating rent. This is normal and should be factored into the calculation for a realistic result. Well-located properties at competitive prices have lower vacancy (5–8%).

What investment rate should I use for comparison?

Use a realistic, consistent rate. For fixed income (CDBs, Treasury bonds), consider between 0.7% and 1% per month. The current CDI (Brazil's interbank rate; local risk-free benchmark) rate is approximately 0.9% per month. Keep in mind: very high rates may not be sustainable for decades, and low rates may understate the investment's potential.

Can I use this to decide whether to buy my own home?

The simulator focuses on investment properties (buy-to-let). For an owner-occupied home, the calculation is different because you do not receive rent but also stop paying rent where you live. The decision to buy a primary residence involves factors beyond finance, such as stability and quality of life.

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