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How can Real Estate Regularization be your protection against the volatility of the Dollar and the fall of the Real?

  • Writer: Antônio O'Brien Júnior
    Antônio O'Brien Júnior
  • Dec 25, 2024
  • 3 min read

If you are an investor or even someone who owns real estate and is aware of economic instability, you have probably already noticed that the rise of the dollar and the constant fall of the real can greatly affect the value of your assets. In this scenario of uncertainty, a little-discussed but highly effective alternative is real estate regularization. And yes, it can be your strategic ally in protecting your assets and even generating greater financial security in the future.


But how does it work?


1. Real Estate Appreciation in Times of Instability

With the rise of the dollar and the devaluation of the real, the real estate market often proves more resistant to exchange rate fluctuations. This is because real estate is considered real assets, that is, it has tangible value and does not suffer the same direct impacts as currencies and other financial assets. By regularizing a property, you ensure that it is fully regularized with the competent bodies, which can increase its value in the market, especially in a scenario where the search for security and stability tends to grow. When a property is regularized, it gains credibility and liquidity. As a result, even in times of crisis, it becomes a more sought-after asset with greater appreciation.


2. Protection against Real Devaluation

In a scenario of falling real, many investors seek ways to protect their capital. Regularizing real estate can be a way to protect the value of assets that, unlike other forms of investment, are not subject to exchange rate devaluation. Real estate has a history of appreciating over time, even in times of economic crisis. In addition, by regularizing a property, you eliminate the possibility of liens or legal disputes that could depreciate its value, especially if you use it as collateral for some financing or transaction.


3. Ease of Selling or Renting

One of the most practical advantages of real estate regularization is the ease of selling or renting. Irregular properties may have problems in the sales, financing or even rental processes. When a property is properly regularized, it has a higher market value, attracting more buyers and renters, especially if economic instability causes more people to seek real estate as a form of financial refuge.


4. Increased Profitability in Crisis Scenarios

Often, regularizing a property may involve initial costs, but in the long term, it can become an excellent profitability strategy. With the dollar rising and the real depreciating, well-located and regularized properties tend to appreciate more, as they are seen as a safe haven for those who want to protect their capital. In addition, regularization makes it easier to obtain credit, which can be essential if you need to take out financing or seek other ways to leverage your real estate investment.


5. The Importance of Investing in Real Assets

With exchange rate instability, many investors begin to shift their focus from volatile financial assets to real assets, such as real estate and land. Real estate regularization helps precisely in this movement, allowing you to negotiate, finance or sell your properties more easily and, consequently, better protect your assets against the ups and downs of the economy. Regularized properties become a kind of "store of value", just like gold and other commodities. They offer greater security and liquidity in an unstable economic environment.


Conclusion: Don't Let Your Property Become a Weight

In times of economic crisis, with the dollar soaring and the real weakening, regularizing your property can be more than just a bureaucratic formality: it is a smart strategy to protect your assets and even improve your profitability. So, if you still have properties pending regularization, it may be time to rethink this and ensure that they are ready to face market volatility. Real estate regularization is an investment that, in the long term, can bring solid results and ensure that you do not lose value in your assets. In times of economic uncertainty, having your assets in order is one of the best ways to protect and value what you have achieved.


Antônio Barbosa Lima O’Brien Júnior, Lawyer specializing in Civil Law and Civil Procedure. For more information: +55 86 9 9988 - 9668.


LATTES CV

He holds a degree in Law from Maurício de Nassau College - FAP Unit (2017). He holds a Bachelor's Degree in Portuguese and English Literature from ETEP University Center (2023). He holds a Bachelor's Degree in Portuguese and Spanish Literature from IBRA College in Brasília (2024). He has a Technical Course in Buildings at the Maranhão Technological Center for Professional Education - CTEPMA (2024). He has a Postgraduate Degree in Consumer Law, Civil Law and Civil Procedure and Public Law from

 
 
 

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