R$ 300,000 property
- Input
- ITBI 3% + registro 1,5%
- Expected output
- 9.000 + 4.500 = 13.500
Purchase costs of 4.5% of the price.
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how much does it cost to buy a home in brazil itbi registry
In the calculator, open Assumptions and costs and fill in ITBI, deed and registry, and other fees. The amount appears as the buyer upfront cash and as capital the renter keeps invested, and it moves the break-even year.
Purchase costs of 4.5% of the price.
With 20% down, upfront cash is R$ 122,500.
With 20% down, upfront cash is R$ 196,000.
One point of difference in the rate is worth R$ 5,000.
Total upfront cash to take the loan.
It depends on two bets: how much the property appreciates and how much invested money earns. In an example with a R$ 500,000 property, R$ 100,000 down, a 30-year SAC loan at 11.5% a year, 5% appreciation, fixed income at 10% gross and rent adjusted 4.5% a year, buying and renting tie after 20 years when the starting rent is about R$ 2,972. With R$ 2,500 rent, renting and investing finishes ahead; with R$ 3,500, buying pulls ahead from year 5. That is why the tool shows a break-even rent and a sensitivity table instead of a single number.
Generally no: the bank finances part of the property price, and ITBI, deed and registry come out of the buyer pocket. Confirm in your bank offer, because rules vary by credit line.
The tax falls on the buyer as a general rule, although the contract may say otherwise. The calculator treats ITBI and registry as buyer costs.
No: ITBI is the buyer. A seller may have a broker fee and, if there is a profit, capital gains tax, which this tool does not compute. The selling cost field covers the broker fee.
After 20 years, Rent and invest finishes ahead of Buy with a loan by R$2,366,901 in net worth.
With these assumptions, buying does not overtake renting and investing within 20 years.
Assumptions: property appreciates 4.7% a year, fixed income yields 14.8% gross a year, rent of R$2,500 adjusted 4.7% a year, loan at 11.5% a year.
R$6,707,583
R$6,316,589
R$9,074,484
Break-even rent: the starting rent at which buying and renting end equal. Break-even appreciation: the yearly appreciation at which that happens, other assumptions unchanged.
| Appreciation \ yield | 10.8% | 12.8% | 14.8% | 16.8% | 18.8% |
|---|---|---|---|---|---|
| 0.7% | -R$812.8K | -R$1.8M | -R$2.9M | -R$4.2M | -R$5.9M |
| 2.7% | -R$584.9K | -R$1.6M | -R$2.7M | -R$4.0M | -R$5.8M |
| 4.7% | -R$244.4K | -R$1.3M | -R$2.4M | -R$3.7M | -R$5.5M |
| 6.7% | +R$256.9K | -R$776.9K | -R$1.9M | -R$3.2M | -R$5.1M |
| 8.7% | +R$986.4K | -R$59.7K | -R$1.2M | -R$2.6M | -R$4.4M |
Positive (green): buying finishes ahead. Negative (amber): renting and investing finishes ahead. The outlined cell is your scenario.
| Year | Buy with a loan | Buy in cash | Rent and invest | Property value | Loan balance |
|---|---|---|---|---|---|
| 0 | R$500,000 | R$500,000 | R$522,500 | R$500,000 | R$400,000 |
| 1 | R$584,193 | R$587,673 | R$622,358 | R$523,500 | R$386,667 |
| 2 | R$679,679 | R$682,870 | R$737,428 | R$548,104 | R$373,333 |
| 3 | R$788,270 | R$787,095 | R$870,574 | R$573,865 | R$360,000 |
| 4 | R$904,707 | R$901,268 | R$1,015,014 | R$600,837 | R$346,667 |
| 5 | R$1,033,679 | R$1,026,725 | R$1,177,158 | R$629,076 | R$333,333 |
| 6 | R$1,176,913 | R$1,165,047 | R$1,359,627 | R$658,643 | R$320,000 |
| 7 | R$1,336,386 | R$1,318,039 | R$1,565,425 | R$689,599 | R$306,667 |
| 8 | R$1,514,362 | R$1,487,767 | R$1,798,000 | R$722,010 | R$293,333 |
| 9 | R$1,713,431 | R$1,676,598 | R$2,061,310 | R$755,945 | R$280,000 |
| 10 | R$1,936,562 | R$1,887,242 | R$2,359,895 | R$791,474 | R$266,667 |
| 11 | R$2,187,154 | R$2,122,801 | R$2,698,967 | R$828,674 | R$253,333 |
| 12 | R$2,469,104 | R$2,386,832 | R$3,084,503 | R$867,621 | R$240,000 |
| 13 | R$2,787,623 | R$2,684,156 | R$3,524,116 | R$908,399 | R$226,667 |
| 14 | R$3,150,921 | R$3,022,532 | R$4,028,772 | R$951,094 | R$213,333 |
| 15 | R$3,565,448 | R$3,407,898 | R$4,608,097 | R$995,796 | R$200,000 |
| 16 | R$4,038,626 | R$3,847,082 | R$5,273,161 | R$1,042,598 | R$186,667 |
| 17 | R$4,578,947 | R$4,347,901 | R$6,036,654 | R$1,091,600 | R$173,333 |
| 18 | R$5,196,155 | R$4,919,317 | R$6,913,144 | R$1,142,905 | R$160,000 |
| 19 | R$5,901,426 | R$5,571,614 | R$7,919,355 | R$1,196,622 | R$146,667 |
| 20 | R$6,707,583 | R$6,316,589 | R$9,074,484 | R$1,252,863 | R$133,333 |
Simulation with editable assumptions, not investment advice. It leaves out capital gains tax, vacancy, FGTS and home insurance.