Why can investing in real estate construction in the USA be more advantageous than in the Brazilian and American Stock Exchange and other financial assets?
But after all, why can investing in real estate in the USA be more advantageous than those other assets?
In this article, we will make a comparison, explaining the rational return of Makan Capital projects and how this diversification strategy can help individual and institutional investors to protect themselves and maximize the return of their investment portfolio in the long term.
Stock Exchange and other securities
The Brazilian and American stock exchanges are traditional forms of investment, with relatively easy access by investors to available assets, starting with a generally very low fractional investment.
As a result, there is a strong demand for good assets and an expectation of average return provided by the indices that reflect most of the shares on a given exchange, such as the S&P500 and the Ibovespa. For example, the S&P500 provides an average annual gross return of between 8% and 10%.
However, high volatility with daily fluctuations can scare new and unaccustomed investors and have a strong impact on equity, especially in the short term.
Macroeconomic data for each country and exchange rate factors also influence short-term profitability. Even experienced investors find it difficult to compare the profitability of different assets when taxation comes into play in multiple countries.
Therefore, it is not so simple to set up a balanced portfolio between domestic and foreign investments.
Analyzing the Bovespa result, we noticed that the Brazilian Stock Exchange between August 2021 and January 2025 went sideways... zero return, with an average accumulated inflation over the period of almost 30%.
Another common problem for investors is not knowing the real strategy and assets of investment funds.
Those who actually read the reports, sheets and other institutional materials and keep up to date to know when to enter and, especially, when to leave a particular fund.
Or do you just passively accept the recommendation of the remunerated investment advisor to “sell” to you the assets that the bank wants to push? Or worse, you only decide to leave when, after paying taxes and eating quotas, you see the fund's real return plummet, even with a loss of principal. Sound familiar?
For many Brazilian investors, the solution is to invest in pre-fixed and post-fixed inflation bonds, such as those linked to the Selic rate, which may seem extremely attractive at first glance. With the basic interest rate at 14.75% per year, investments linked to the CDI promise significant nominal returns.
However, this apparent advantage hides some pitfalls:
- Persistent inflation - Even with the significant nominal gain, inflation projected above 5% for the next 12 months significantly reduces real returns. While the real gain of 9.46% seems attractive, it doesn't consider the next two factors.
- Income Tax - Fixed income investments are subject to taxation that varies between 22.5% and 15%, depending on the term. An investment that yields 14.75% per year, after a 15% tax (for investments over 2 years), delivers only 12.54% net.
- Exchange rate devaluation - The most overlooked and potentially most damaging factor. Over the past 30 years, the Real has lost more than 80% of its value against the dollar, according to data from Nord Investimentos (2025). This chronic devaluation transforms apparently robust gains into real losses when measured in hard currency.
The Zero (or Negative) Net Gain from Investments in Reais
Let's do a practical exercise: an investment that yields the current Selic 14.75% per year, after discounting:
- Projected inflation of 5.4% per year
- 15% Income Tax (for long-term investments)
- Average historical devaluation of the real against the dollar of approximately 10% per year
It results in a real gain in terms of global purchasing power close to zero or even negative:
14.75% (gross income)
- 2.21% (IR of 15% on income)
- 5.40% (inflation)
- 10.00% (average exchange rate devaluation)
This simplified calculation illustrates how apparently profitable investments in Reais can represent stagnation or even loss of wealth when measured in the long term against a hard currency, reinforcing the need to dollarize an important part of your investment portfolio.
Alternatives for building generational wealth
Those who follow Makan Capital know that our mission is to help investors create wealth for themselves and for the following generations, by building a diversified investment portfolio in an area still underexplored: the construction of residential properties in the United States.
Why the American residential construction market?
- First, the American real estate market is the largest asset class in the United States, valued at $228 trillion dollars, approximately twice the value of the shares of American companies traded on stock exchanges.
When you invest in construction for resale, you invest professionally in the literal construction of the asset, and not just in its valuation. - Second, there is an enormous housing deficit in the United States, estimated at between 4 million and 6 million units, where the useful life of an American house is estimated at 50 years and, therefore, there is an enormous annual demand for the repair or replacement of assets (especially in areas undergoing gentrification).
- Third, the American construction industry is standardized, with fast, clean, and waste-free construction techniques. As a result, a 160m2 house with 4 bedrooms, 3 bathrooms and 2 parking spaces can be built between 4 and 5 months, which enhances the investor's annual return rate!
Makan Capital is an investment boutique based in the United States with the objective of delivering an annual return greater than 1.5x the S&P500. Through our residential home construction projects in high-demand areas, we offer annual returns that can easily exceed 20% in dollars.
And all this with transparency and security.
The secret of Makan Capital
The results of our projects are only possible because we focus on:
- high speed of construction and sale;
- rigorous curation of “ready-to-build” land and projects;
- complete structure for Brazilian investors, from the opening of your company in the United States to the payment of taxes and tax and succession planning.
