How Much R $ 1 Million Earns in Real Estate Funds


Knowing how much you earn 1 million in real estate funds will help you build your investment portfolio to live off your income.

Real estate funds (FIIs) won over the Brazilian investor.

More affordable than real estate, at around R $ 100, it is already possible to buy a quota and own a piece of large real estate developments.

Investing in FIIs for the long term offers several advantages.

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In addition to exposure to the real estate market, it is possible to monthly income from rents even without having a property.

In general, real estate funds pay around 0.6% of monthly dividends, exempt from income tax.

For this reason, it is one of the most advantageous products for those who want to live on income and achieve financial independence.

Real estate investment funds have experienced significant growth in recent years.

Driven by the low profitability of fixed income, investors saw the FIIs as an alternative to guarantee better returns.

Even during the pandemic and with the decrease of around 15% in the year of the IFIX index, the number of quotaholders increased.

According to data from the Brazilian Stock Exchange (B3), in August the number of SIEF investors reached the 1 million mark.

Do you already invest in real estate funds?

Look how much it earns R $ 1 million in real estate funds in Brazil and what are the best FIIs to invest in today.

What You Will See In This Article:

How the profitability of real estate funds works

The profitability of the Real Estate Funds depends on factors such as the composition of the fund’s portfolio, the sector’s situation and the value of the quotas.

There are two ways for an investor to make money from this investment: by valuation of quotas traded on the stock exchange and by monthly earnings.

Monthly income distribution is one of the most attractive features of real estate funds.

The regulation states that, at least 95% of the profits received are distributed to shareholders from the bottom.

This mechanism is similar to the payment of a rent, which is deposited directly into the account of the shareholder’s brokerage.

This monthly income is exempt from Income Tax (IR) and can be transferred monthly, at the end of each semester or at the end of the year to the investor.

Anyone who wants to can choose to reinvest these amounts, taking advantage of the effect generated by compound interest on profitability.

Thus, instead of spending R $ 1 million to buy a single commercial space for rent, when opting for the real estate fund, you will be exposed to a much wider range of assets.

In addition, you have the possibility to earn more, you will be exempt from several fees and will reduce your risk.

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FII fees and taxes

Before you know how much is 1 million in real estate funds it is necessary to know the rates and taxes that affect this type of investment.

FIIs stand out for their low cost, mainly in comparison with the purchase of a physical property.

The income paid by real estate funds is exempt from income tax.

There is no charge for IOF or co-quotas.

In the case of sale of shares at a profit, the rate charged is 20% of the profits obtained from the operation.

It is important to note that this amount is not collected automatically.

It needs to be calculated and paid through the DARF (Federal Revenue Collection Document).

Another point in favor of the FIIs is the exemption from the brokerage fee and the custody fee.

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How much is 1 million in real estate funds

A profitability of a real estate fund it is subject to several variables, such as the composition of the fund, fluctuations in the economy, vacancy, among others.

Although it is not possible to predict future profitability, a starting point for choosing the best funds is to look at the history of returns recorded in recent months.

Much of the FIIs deliver dividend yields between 5% and 8% per year.

An average of 0.5% to 0.6% monthly in dividends against 0.16% of fixed income investments.

These dividend yield metrics, however, can change dramatically, especially in periods of volatility.

Like the Ibovespa, real estate funds have also felt the impacts of the Coronavirus crisis.

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Profitability of the Best Real Estate Funds

After the sharp drop in the first quarter of the year, funds have been recovering, with a good part of them continues to pay attractive dividends to investors.

According to the monthly newsletter of the real estate funds of August 2020, released by B3, the 10 most profitable funds in the last 12 months are:

ALZR11FII Alianza Trust Renda41,9%
BCIA11FII Bradesco Carteira Imobiliária31,2%
CXRI11FII Caixa Rio Bravo57,6%
EURO11FII European33,2%
FIVN11FII Vidanova39,5%
HCTR11FII Hectare46,5%
HGLG11FII CSHG Logistics34,2%
HGRU11FII CSHG Urban Income31,9%
XPIN11FII Xp Industrial38,6%
XPLG11FII Xp Log32,2%

* Profitability of FIIs in the last 12 months refers to the variation in the closing price between 08/31/2020 and 08/31/2019.

Where to invest 1 million?

Real estate funds are a simple and practical alternative for investing in real estate and better exploring the sector’s opportunities.

This type of investment has been gaining popularity in recent years mainly due to the payment of monthly dividends exempt from income tax.

Despite being a great alternative, many people enter this market in the wrong way.

Investing without strategy, looking only at distributed income and not diversifying are the main mistakes.

The investor who wants to live on income must have a diversified portfolio, with exposure to various sectors.

Knowing where to invest R $ 1 million can generate a good income, provided it is applied to the best investments.

Want to know what they are? Then download the free e-book “Where to Invest R $ 1 Million”.


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