Investing in stone is an excellent choice that is increasingly popular with the French. But when it comes to an investment in new real estate, certain rules must be respected. Indeed, for this to be a success, it must be prepared and must not be done unexpectedly. Here are 4 rules for investing in new real estate.
Define the target well
Before embarking on the investment, it is important to define the target, that is to say the future tenants. Indeed, it is preferable to buy a small surface housing near a university or the city center because this type of housing is popular with students or single people.
Larger accommodation will be more suitable for a couple with children and should therefore preferably be located near a school, a crèche or a college. The presence of green spaces and shops near the accommodation is also important. Each target has its pros and cons. A large area is more expensive to buy and sometimes more difficult to rent, but once the family is settled in the accommodation, it will stay there for several years. On the other hand, with a small surface housing, the rental will be faster but the change of tenant more frequent.
Another strategic choice: a bare or furnished rental. Students, young professionals or people who move regularly will prefer furnished accommodation. On the contrary, families generally already have furniture and will have a preference for a bare rental.
Perform rental market analysis
It is important to analyze the attractiveness of the neighborhood or the city to be sure to attract tenants. A city where there is work, development projects, local shops, where security is very present has every chance of convincing tenants.
It can also be interesting to meet the inhabitants of the district to find out their opinions on their district, the developments to come, the advantages… The idea is to choose the location of the property taking into account the possible desires of future tenants. Going there allows you to better appropriate the place, to also discover the environment and thus avoid unpleasant surprises.
This approach will also be an opportunity to determine which properties will be most sought after by tenants.
Invest in an attractive region
To invest well in new real estate, the choice of the location of the property must be made carefully. It is important to turn to a region that offers good employment opportunities and where the economy is prosperous there. But that’s not all, the property must be located in a region with greenery, infrastructure, places of leisure… To make a successful investment, it is essential to find the right location. To be sure to rent the property, you have to bet on places where rental demand is strong: a town well served by a road or rail network, a student town or one that hosts businesses…
Investing in a new program in Île-de-France is an excellent idea since this region remains very attractive. This region, dynamic and densely populated, therefore remains a safe bet as far as real estate investment is concerned. The road network and the various infrastructures make it easy to move around within the region. As part of an investment, opting for a real estate program in the Hauts-de-Seine is a good choice because this department is attractive and located at the gates of Paris. It is home to the La Défense district, one of the largest business districts in Europe.
Determine the financing capacity and find out about tax arrangements
Once the financing capacity has been well determined, it is necessary to know the different tax exemption schemes that exist in order to take advantage of them. Investing in rental real estate allows you to benefit from attractive tax measures in order to save money.
Different tax regimes are possible. The Pinel device makes it possible to invest in new real estate where demand is very high and to benefit from a tax reduction for several years (6 years minimum, 12 years maximum).
Non-professional Furnished Rental offers better housing profitability. The property will preferably be small and located in a large city to meet the needs of students or executives on the move.
In addition, the Censi-Bouvard system allows the owner to benefit from a tax reduction and, in certain cases, to recover VAT on the purchase price. However, this device is only valid for furnished rentals. Depending on the tax option chosen, the return on real estate investment can vary from simple to double. It may be interesting to call on a real estate expert to find out which is the most suitable device. To be successful in your real estate investment, you have to think about profitability and not be guided by your affect or instinct.
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