Car or Property: Which Option is the Best Investment?


As time goes by, the need arises to acquire a durable asset. So, just put more money in the budget or a credit opportunity arises with the bank that appears in doubt: buy a car or property?

Both are achievements that most people desire, but it is not always possible to acquire them together. To help you make that decision, we have prepared this post with the main pros and cons of investing in a car or property. Check out!

What is the difference between spending and investment?

First, it is important to differentiate spending and investment. When we spend money, it is because we are acquiring or paying for something that will have no return.

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While it may be necessary, it is “lost” money. This is the case with the money we use to buy clothes, food, leisure, etc. Despite the benefits we have from spending, that money will not go back into our pocket.

Investment, on the other hand, is money invested in an asset that can yield future returns. This is the case with bonds, banking, and real estate applications, for example. Sometimes it may take a while, but the money returns. The amount will depend on how this investment will be managed: if well taken care of, it is possible to get a good income from it.

Should I invest in a car?

Having a car is the dream of many people, especially those who live in large cities. With a vehicle, you can drive anywhere with comfort and speed. However, this is an investment that needs a lot of planning and can generate a lot of unwanted expenses.

When purchasing a vehicle, it is necessary to constantly worry about supplying it, taking care of the mechanics, paying insurance, licensing, IPVA, inspection, among other expenses.

In addition, it is important to be aware that the model chosen will not always maintain the market price at which it was purchased – that is, many times a car ends up becoming an expense, and not an investment.

In addition, if purchased for financing, a car can be a debt that lasts for many years. Many people end up renewing the financing after some time to exchange the vehicle for a better model. This can lead to an endless cycle, creating almost permanent debt.

Should I invest in property?

Buying a house or apartment seems like a much bigger and more important investment compared to buying a car – and that is true! However, in addition to guaranteeing to house, it is an asset that will hardly be devalued.

As in the case of the car, it takes a lot of planning and care when investing in a property. It is good to pay attention to all the details of the purchase contract. It is also important to plan not to spend more than you can afford.

Even with expenses such as condominium fees and basic maintenance of the property, the return on investment is guaranteed. Most properties are acquired through financing, which can be paid according to the estimated time or amortized using the FGTS.

Car or Property: After all, which one should I choose?

Although a car provides comfort and independence, it can also end up becoming a big problem for the owner. In addition, there is always the risk of having the vehicle stolen or damaged, leading to loss.

Investing in a property can scare many people, but it can also be the right choice for those who want a durable property and want more security in the long run. A house or apartment hardly ever loses its value, especially if it has a good location and is well taken care of.