Choosing a good real estate investment depends above all on your project, depending on whether you intend to build up your assets, buy to rent or to receive additional income. It is according to your plans that you will be able to find the investment that really corresponds to your needs. This part of the guide on real estate credit is intended to help you choose the best real estate investment in the category you have selected!
The best rental property investment
Rental investment is often the most popular among individuals because it consists of acquiring a tangible property, which can be used as a principal residence once the mortgage has been repaid. However, it is a project that must be carried out with care and prepared in advance, in order to select the right location and choose the most attractive property, so as to derive the greatest benefits and make it the best rental investment. To achieve this, here are the criteria to be taken into account.
Long-term rental profitability
Finding the most profitable property does not mean looking in the most tense areas. On the contrary, prefer cities offering the best return - the most interesting ratio between purchase price and rental value.
To find the best long-term rental investment, it's best to look for provincial towns... Or for capital, but rather if you can access exceptional properties with very high rents.
Seasonal rental profitability
For seasonal rentals, the best rental investment will depend on the rate of attendance at the location (on the seafront, in the mountains in a ski resort, in a spa town, etc.) and the rental potential throughout the year. Here, the best real estate investment will therefore depend on many elements - while knowing that there is always a small risk of vacancy, even during the most touristy period.
But be careful not to exceed the planned duration of the rental period per year if you wish to stay in LMNP ("non-professional furnished landlord"). And also pay attention to the specific regulations (and taxes) applied by certain cities.
In any case, seasonal rental does not seem to be the best rental property investment, at least if you compare it to traditional rental. It exposes to more risks and remains dependent on fashions (such a popular seaside resort may be deserted tomorrow by the crowd).
New or old real estate
It's the eternal question that stirs rental investors, but the fact remains that the best real estate investment for rental purposes is still new. Why is that? Because when you buy new, you benefit:
- A property in perfect condition, with the latest standards in terms of heat and sound insulation, without costly
- renovation work to plan;
- Ten-year guarantees on the construction;
- Notary fees half as high as in the old one (between 3 and 4%);
- A better rental attractiveness;
- Pinel-type tax exemption systems.
Buying a property near your home
The best rental real estate investment is always the one you make close to home: you know the neighbourhood/city/region, you can study the local real estate market, you have every opportunity to visit the property as many times as necessary before signing. And what's more, proximity will make your rental management easier, allowing you to manage your property yourself without having to pay a large sum of money to entrust it to a professional!
The best professional real estate investment
This is a solution that private individuals do not always think about: investing in professional real estate can be extremely interesting. And lucrative! But are offices and shops a better real estate investment than residential property? The arguments are, to say the least, in favour of this idea:
- Very low vacancy rates;
- Attractive returns (up to 10% gross annual return);
- A market that is not about to run out of steam (businesses will always need offices, shopkeepers will always need premises, etc.).
The right methods to finance your real estate investment
Do you have an investment project? Do you want to seize an opportunity and take advantage of the best possible real estate investment? The simplest solution is to take out a home loan with a bank or credit institution - or better yet, go through a broker who will find you the most attractive rates.
Are you a company or a legal entity? You can also choose to invest in stone by taking out a professional loan, with many advantages.