You know that house project that you keep dreaming about, but that never gets off the ground because of the budget? With the construction consortium it happens.
Many people think that the consortium is only for the purchase of goods such as ready-made houses and vehicles, but this resource is much broader. In the construction modality, you renovate or build your house from scratch without harming your bills.
What this article covers:
What is a construction consortium?
A consortium for construction works like any other type of consortium: you join a group of people interested in building or renovating their homes and pay monthly installments until you are awarded your letter of credit.
This is an alternative for those who dream of a brand new home, but do not have the necessary budget to pay for the project in cash. Due to the maximum contemplation period, which can reach 180 months, it is the perfect option for those who are planning for the long term. This way, you pay without compromising the rent and while you organize your project.
How does this type of consortium work?
We already said that the consortium for construction works like any other. But what does it mean?
An administrator is responsible for joining you to a group of people with the same goal. Together, you feed a kind of collective savings, in which the amount corresponding to the monthly installments becomes the value of the letter of credit. Every month, one of the consortium members is drawn and receives the contracted amount. In addition to this type of contemplation, which takes place in assemblies, it is also possible to offer bids, in an attempt to anticipate access to the letter.
Consortium for construction x loan
It is very common to have doubts about which is the best option between the loan and the consortium. There is no right answer to this question, as both have their advantages and only your need can determine the best one.
The loan is an alternative for those who need quick cash. In the domestic context, it is indicated, for example, for a reform that is compromising the structure of a house and needs to be done urgently. With it, you have the chances of having the offer approved on the same day. The condition, however, is to have an interest rate embedded in the amount to be returned to the financial institution.
The consortium, in turn, is an option for those who are still putting their ideas on paper and, therefore, do not need the money in such a hurry. The main advantage is that you don’t pay interest in the consortium, just an administration fee that pays the responsible company and guarantees the safety of the product.
What are the consortium rules for construction?
Making a construction consortium is not a bureaucratic process. However, before looking for an administrator to hire yours, you need to be aware of some conditions that must be met.
One of them refers to the terrain. A consortium member’s letter of credit can only be used on a plot of land located in national territory. No going out building in foreign lands, see?
Although this type of consortium is usually acquired for the purpose of building or renovating, it can also be used to acquire the land itself. This will depend on the value of your card.
If your letter takes a long time to come out and when it does you have given up on building a property, all is not lost. It is possible to use the amount received to buy a ready-made property, whether new or used. The condition is that it be of the same category, that is, a dwelling.
Speaking of housing, another advantage that the consortium offers is the use of FGTS. With the guarantee fund, you can bid to increase your chances of receiving the letter, complement the value of the letter you received, if it is lower than your planning, or settle the outstanding installments.
How to be contemplated in a consortium for construction?
If you are dreaming of a new house and see the consortium as an opportunity to get this project off the ground, know that there are two ways to be contemplated: via draw or bid.
The draw is the standard contemplation format. Every month, one of the consortium members has their contract number drawn at an assembly. When this happens, he receives the contracted letter of credit and, if he still has an outstanding amount, he continues to pay.
Bidding works like an auction. In this format, the consortium member can make an offer in an attempt to receive his letter in advance. If the bid is accepted by the administrator, the letter of credit is delivered. And the best part is that you don’t have to offer the total outstanding amount, just make the best offer.
Did you like the idea and want to be the next winner? So hire the construction consortium and conquer your own home!
