Real estate: in what to invest?
Investing in stone is the safest and most profitable solution. With the fall of real estate loans, you have more opportunities for investment at lower cost. Nowadays, investments in real estate can come in many forms. It only remains to find the investment you need in this shambles of choice.
Buy to become owner: classic, but effective
Real estate investing means most of the time “homeownership”. This is a classic approach. But it has the advantage of being safe and easy. It is also within reach of young people.
- The benefits of owning
Being a landlord will at least have the merit of emancipating you from the lease contracts and the exorbitant rents paid by certain landlords. You will reduce monthly expenses and optimize your purchasing power.
In addition, having your own real estate assets opens the door to more banking services. For example, for your next loan, you could opt for a mortgage. What will allow you to negotiate a better rate for your credit agreement.
According to the property law, as the owner, you have the right to use and abuse your property as you see fit. You can lend, rent, live, work, etc. All without being accountable to anyone.
- A specific credit for new owners
For those who access the property for the first time, there is a specific credit for you, offered by the banks. This is the loan “first-time buyer”. A rate revised downward, monthly payments appropriate to low incomes: this banking service is aimed especially at young people and even without contributions.
To qualify, simply fill out an online form and send the receipts through a brokerage agency. We are obviously talking about residence certificates, pay slips and the promise of sale, etc.
Choosing the right property
Choosing the right property to buy is easier when you invest for yourself. This is not the case if we intend to rent it. The selection criteria in this sense will be given later.
Nevertheless, no matter the purpose of the investment, you have to compare wisely all the offers to hope to find the best investment to make or get closer to professionals like real estate brokers, real estate agencies, etc …
It should also be known that the price of m2 varies from one region to another in France. Paris, for example, does not really attract investors because of the tension that is rife more and more in the housing bubble.
- Some flips of the medal
Be careful though, buying to become an owner can have some disadvantages. For example, research has shown that becoming a homeowner is more expensive in the long run than renting. In the rental, we have no expense to do for the maintenance of the building. This will be the prerogative of the owner.
In addition, if you buy through a mortgage, you are still at risk of over-indebtedness.
In addition, to make the property profitable, it will take years. This is a long-term investment. Even if your wealth would appreciate, it will not be in cash unless you sell it.
Rental investments: what are the benefits and how?
In the list of the best real estate investments to make, the rental investments prevail. Seniors, thirties or even younger borrowers are likely to have been tempted by this kind of opportunity.
- Quick benefits
As its name indicates, rental investments consist in buying a property that you will rent. The benefits are obvious. You will be able to receive monthly rents. This is faster than letting his investment sleep to hope for an added value on resale.
But beware, if you want to get into this kind of real estate investment, know that all goods are not profitable. We must find a modern building and comfort, taking advantage of all the necessary infrastructure to ensure the comfort of future tenants.
Once 9 years have passed, you can recover your property: use it for your personal needs or continue renting. But beware, you can not claim a tax reduction in the second case.
Mutual Funds a trend in recent years
mutual fundss are also good alternatives for real estate investment:
Earnings of 4% gross annual
Investors were convinced mainly by the greed. Indeed, REITs are, it seems, the most profitable real estate investments of the moment. You can earn 4% of annual gross income on average.
Be careful though, these incomes are only possible if you choose your mutual funds wisely. Investment agencies with many years of experience and a good reputation in the market are preferred.
A lower risk investment
The mutual funds offers risk-controlled investments. Here, you do not buy a property in its entirety. You only commit to part of it. You are in a way a co-owner.
And as such, you reduce the amount you will invest. Instead of a hundred thousand euros to become owner, you agree on 7 to 10 shares for a few hundred euros. To this may be added fees that vary from one mutual funds to another.
It is important to note that in mutual funds, the more you invest, the more money you will earn. As many investors commit to the same asset, you minimize the risk of personal bankruptcy.
Easy management of investments
More commonly known as “paper stone”, investments in mutual funds have the advantage of being practical. By buying a portion of a property, you own only on paper. In other words, you will not have to deal with different requests and complaints from tenants.
The maintenance of the premises, the repair of the infrastructures and the settlement of the conflicts concern only the mutual fundss. Your role is only to earn the benefits of your investment at the end of each month or at the end of the quarter.
mutual funds can be considered as a long-term investment, but its benefits are available quickly. For your information, it is possible to assign your shares, resell them or give them as your inheritance. However, you cannot mortgage.
Several market opportunities
Finally, mutual funds can offer you several markets. In addition to private property, you have sales windows, business premises, car parks, specialized establishments, etc.
Leaving to embark on the paper stone, as much avoid the hirings of good for private use. These are often difficult to rent. On the other hand, driven by a tendency to entrepreneurship, sales windows and business premises have been very popular in France for a few years. mutual funds agencies will have no trouble finding tenants. In this case, choose a property that enjoys a good location.
Service providers are generally attracted by the goods in the foreground. They benefit from better visibility, which can be crucial in the prospecting and marketing strategies of the company. In the real estate park of mutual funds, you will be spoiled for choice. It seems however necessary to underline that the price of the quota can vary from one property to another according to its quality.
According to some research, it also seems that in France, we are witnessing an aging population. As a result, demand is expected to increase in specialized institutions. It can be a juicy market.
Buy in bare ownership: some benefits not to minimize
A new trend is also starting to make him talk about the real estate investment in France: the bare ownership. Whether you want to secure the future of your children or simply need to diversify your wealth, this can be a good alternative.
Bare land costs less
Buying bare-property can have economic benefits. Indeed, according to research, the price of the m2 in this case will be much cheaper than that of a house the keys in hand.
However, as with any property, the price can vary from one asset to another and according to the region. In the big cities of France, m2 is negotiated between 3,000 and 8,000 euros, against 1,500 to 5,000 euros in small villages.
In addition, be aware that land can cost more if it is already ready to build. That is to say, you do not have any more work to do.
You can rent naked or have it built
A bare ground leaves more room for creativity. You can rent it directly. Thus, you will pay only the taxes for the holding of the land and the taxes on the income that you touch via the latter. Tenants arrange with the tax authorities for social contributions according to their activity. It can be a culture, an industrial exploitation, even a house, etc.
The lease for the lease of a bare land looks exactly like conventional rental contracts. Each party must respect a notice period when he wishes to terminate it.
In addition to renting, you can also build a building on your land. If you know how to do it, the project should be cheaper than buying a turnkey home. It is enough to hire independent craftsmen for each part of the construction and a client to supervise the construction site.
Get help from brokers to find his future acquisition
As with any real estate investment project, you will need the help of a broker to find the perfect land to acquire. The criteria vary depending on the purpose of your investment. If you plan to build, for example, we advise the land already prepared in this way.
Location, size, soil characteristics, etc. are details that you need to consider. Do not be fooled by the low m2. There are, for example, lands that are specifically made for crops.
Others are more in line with a construction project. The advice of an expert in the field will be useful for you to sort out all the proposals, in addition to taking the time to visit the premises. While photos can help you get an idea of the state of affairs, but nothing beats a physical visit.
On average, a sale transaction of bare land takes 3 to 4 months. It all depends on the speed at which your credit has been accepted and the latency with the town hall for the registration of papers.