Investing in real estate, a good plan? There are several reasons for you to become a real estate investor: tax reduction, transmission of real estate assets to loved ones, collection of additional income… Before taking the plunge, find out about the steps to take and the pitfalls to avoid. Become a real estate annuitant by respecting certain rules.
Get a mortgage to invest
If you take out a mortgage to buy, be aware that the bank will ask you for guarantees. Generally, it lends more if you have a contribution. If necessary, the banking institution will ensure that you receive sufficient and regular income. He will also assess your debt capacity. In the case of current credits, your chances are very limited.
Play the competition by canvassing several different banks. Do not hesitate to negotiate your credit. You can also be accompanied by a real estate broker. He will take care of comparing the offers for you and select the one that best suits your situation.
Where to invest in real estate ?
So that your real estate investment is profitable for you, do not choose just any place. Take the time toassess the potential of the chosen city. The location is also very important because it directly influences the price of rent in the event of a rental investment.
It’s important to choose a good location to realize a capital gain in the event of resale. There are “real estate niches”. It can be, for example, senior or student residences.
This requires significant research in order to acquire good knowledge of the local market. Put yourself in the shoes of an expert in order to unearth properties with very high potential. The selected area should be surveyed.
Do not hesitate to meet entrepreneurs in the real estate sector in order to get advice. Build a network of contacts to take advantage of their expertise in the field. To have a chance to meet mentors, go to specialized meetings.
Manage your property
Are you running out of time to manage your real estate investment? Or you don’t have the soul of a manager? Trust rental management companies. The other solution is to invest in real estate through a civil real estate investment company. In this case, you simply buy shares and management is provided by the SCPI. In case of resale, the operation is easy because you just have to sell your shares. Note, the income received and the tax benefits are identical, SCPI or not.
Investing in real estate to rent or resell is an effective way to earn a lot of money. However, before starting, you must take precautions. Do your own research and surround yourself with specialists. Never invest lightly.