The advantages of real estate investing

For various reasons, real estate investment is an interesting solution in order to diversify its assets, to generate additional income or to make a living from it. What also pushes investors to opt for this sector is the fact that it allows them to build wealth through bank loans.

Real estate investing has this major advantage: the leverage effect through bank credit can be very high. So even if you have no savings aside but a situation will allow you to have a stable source of income (CDI not to mention it, among others), you become eligible to obtain a mortgage. to invest.

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Let's take a closer look at what are the benefits of real estate investing!

The benefits of investing in rental property:

Investing in rental property deserves a deep analysis. Here are the main points that come into play:

Choose the seller of the property

There are many advertisements for the sale of real estate. For an investment aimed at profitability, it is important to select the ideal type of seller, who really wants to sell his property. Otherwise, the buyer risks spending a lot of time and money. Why is finding an individual who "really" wants to sell important? This allows you to have all the cards in hand to negotiate with someone who wants to get rid of their property quickly.

Since the buyer's goal is to make a profit, you might as well do so upon acquisition. The gain must be obvious from the time of purchase, you will have an unrealized capital gain that secures the operation (example: you buy a property for 100,000 euros, you do 10,000 euros of work and you can as soon as the work is finished if you do so. want to put it on sale for 130,000 euros).

Identify the type of tenant targeted

The purchase of real estate is only done after you have identified the type of tenants you are targeting. Among the many parameters, there are the living areas. Students opt for apartments which are relatively small in size (studio, T1, T2). As for people who come to settle with their family, they prefer spacious accommodation, with two or three bedrooms, or even more.

Location and geographic location are also important criteria. These are the parameters on which the comfort and serenity of tenants depend. There are those who demand proximity to various services (schools, public transport, shops, banks, etc.) and others who favor low footfall, peaceful corners and the fresh air of the countryside. It is therefore necessary to identify the target before making the choice of the property to buy.

Make a study of the real estate market in your city in order to know the average sale and rental prices according to the surfaces.

Ally with professionals

To be sure of getting a good real estate deal, it is important to surround yourself with competent professionals. The latter know the market situation, master the constitution of the necessary files. The main allies in rental property investment are the notary, the real estate agent, the accountant and the craftsman.

These professionals are numerous, so it is necessary to find those with whom one can make rational decisions, be comfortable in discussions and negotiations. By having professionals in the sector as partners, the buyer does not risk trusting his instincts and falling under the spell of any good that does not necessarily meet his expectations.

The advantages of building your heritage

There are still many strategies for making a nice profitable acquisition. But you also need to know the advantages of a rental property investment.

A quiet retreat

When you reach retirement age, you need to think about a new or additional source of income. By having real estate other than the main residence, it can be rented out for the purpose of earning rents. This is a long term project; profitability is logically sustainable and allows you to have a secure source of income. We have two rental possibilities: empty rental and furnished rental. The location in a dynamic neighborhood, the living area and the nature of the accommodation obviously influence the amount of rent.

Being close to your family

It is not uncommon for an investor to acquire real estate in order to be closer to his family. First, he can rent the property. After a few years, the whole family finds itself in the same household or near those close to it. In this case, real estate investment is an advantage that will also benefit relatives.