FIIs vs Physical Real Estate: Which Investment Is Better?

| Criteria | FIIs | Physical Real Estate | |---|---|---| | Minimum investment | ~R$10 (1 share) | R$100,000+ (down payment) | | Liquidity | High (sell on B3) | Low (months to sell) | | Diversification | Easy (multiple funds) | Hard (1-2 properties) | | Management | Professional | You manage | | Tenants | Large companies | Individual/corporate | | Vacancy | Diluted across properties | 100% or 0% | | Income taxes | Exempt (individual) | 15-27.5% income tax | | Extra costs | Management fee (~1%/year) | Property tax, maintenance, condo fees | | Average return | 8-12%/year | 4-6%/year (rent) | | Appreciation | Market-dependent | Location-dependent |

When FIIs are better: - You have less than R$200,000 to invest - Want geographic diversification - Don't want to deal with tenants and maintenance - Want tax-exempt passive income

When real estate is better: - You want total control over the asset - Have expertise in the local real estate market - Can leverage with advantageous financing - Seek appreciation in a specific area

The ideal combination: Many investors have both — FIIs for diversification and passive income, real estate for solid assets. PaxMoney lets you track both.