Published on 01/27/2020
Investing and succeeding in real estate means respecting specific criteria and not involving emotions. Situation, target, well, everything is to be inspected.
Investing and succeeding in real estate is not as complicated as you think. All you need is a method and a good analysis of the financial package. A property hunter can help you in your search.
Investing and succeeding in real estate consists of buying a property to rent it out in order to receive additional income and build up a heritage.
In general, this investment falls within tax schemes that allow savings on income tax. The rents collected finance three-quarters of the loan taken out. The balance is settled by the tax savings made and a reduced savings effort.
Finally, the legal provisions allow a rent a little lower than the average for the tenant, guaranteed for the entire investment period. This makes it easier to find tenants.
To invest and succeed in real estate with complete peace of mind, several key points should be considered.
The first criterion for embarking on rental investment is an optimum geographical location. We will choose a real estate program located in a city whose demography has been increasing for several years. The public transport offer should also be studied.
The proximity of shops and the main areas of professional activity should also be taken into account. Finally, the vacancy rate indicates whether a city is prosperous or not.
In addition, if you plan to manage the property yourself, it is better to buy close to home or in the same department. On the one hand it gives you a better knowledge of the neighborhood – compared to an investment at the other end of the country, on the other hand you are closer if there is a problem.
To invest and succeed in real estate, you also need to know what target you are aiming for. A student will first look for a studio and will not be attracted to the same neighborhoods as a young worker. Shops, services, neighborhood life will be different.
Similarly, a student will rent for a few months, while a couple will tend to stay for several years.
Investing and succeeding in real estate consists above all in not bringing the emotional into the transaction. Indeed, we do not invest in a second home or a main residence. We are not looking for a favorite here, but for easily rentable accommodation that will please everyone.
It must be as neutral and practical as possible, functional above all.
We are not looking for very high returns in real estate investment. They are around 3 to 4%. The most important is tax exemption, for example with the Pinel law.
To benefit from the tax advantages, the rental investment must take place in a new building. In this case, the choice of promoter is essential. You have to check its reputation, whether it meets the standards, the mix rate (1/3 social housing, 1/3 investment, 1/3 main residences).
The choice of tenant is also very important. To ensure that he pays his rents well, you can require a guarantor, or take out unpaid rent insurance.
To avoid the setbacks of renting, you can call on a rental management agency, which will take care of everything: finding the tenant, visits, reminders. To choose the right professional, check his reputation, his financial guarantee, his lasting presence in the local fabric.
Conclusion: investing and succeeding in real estate consists of finding the right compromise in terms of surface area, location, tenant type, housing functionality.
Photo by Adrien Olichon/Unsplash
Parisearch is a real estate agency in Paris.
Connected 24 hours a day to the market and its network, it responds to all requests for research or sales of real estate in Paris and the Ile-de-France.
Its objective is to accompany its customers in the realization of their project of life by securing their step and by allowing them to reach rare goods (off-market) which will make their happiness and will answer perfectly their criteria.