The real estate market has enjoyed incredible success in recent years in France. Several individuals and companies then decide to try their luck in this sector. If you want to invest in real estate, here are some ways to do so.
Opt for pleasure real estate
Pleasure real estate consists of acquiring or building a property to use it as a primary or secondary residence. This type of investment is not motivated by financial reasons, but by the need to own a home.
It is also possible to choose a shared purchase if you plan to live in an apartment. On the Copropriete-Hellio website (https://copropriete.hellio.com/), find all the essential information you need to know before opting for this enjoyment solution.
Before embarking on such a business, make sure you have a stable professional and personal situation. The costs and emotional investment in this type of project are indeed very significant.
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Turn to rental real estate
Rental investment consists of purchasing a building or property with the aim of renting it out. It is a perfect solution for individuals who wish to make their investment profitable in the long term. IF you take out a loan for its financing, you can avoid suffering too much from the payment of monthly payments. A large part of the payments will in fact be covered by the rents collected.
As part of this type of investment, the owner can decide to provide bare or furnished rentals. It is recommended to choose the second option, because it is often more attractive and has more advantageous taxation. Here, rents are not taxed under the property income regime (this is the case for bare rentals), but on industrial and commercial profits. This allows you to best amortize your property.
However, rental investment can require you to devote a lot of time and presents many management problems.
Consider the options of investing in SCPI or real estate crowdfunding
The Société Civile de Placement Immobilier (SCPI) allows you to invest by entrusting the management and administration of the property acquired to a specialized company. You indirectly become the owner with dozens or hundreds of other partners of this structure and receive part of the rent obtained thanks to the building. The size of your monthly or annual income depends on the number of shares you own.
Crowdfunding allows an individual to take part in an equity investment of a set of goods through an online platform. It facilitates contact between project leaders and investors through calls for tenders. You can thus finance their real estate operations by granting them a small loan to be recovered after six to twenty-four months. Crowdfunding can generate a significant profit which can be between 8% and 12% of the capital lent.
The advantage with these two types of investment is that you delegate all the management efforts necessary to maintain the property. They also allow you to diversify your investments and, thus, suffer less from the risks of deterioration of acquired buildings or non-payment of rent.
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Varied real estate investment solutions in France
If you want to become an owner or make a real estate investment, you have the choice between several solutions. Opt for enjoyment investment if you are looking for a new residence or renting your property.