Following an inheritance or even through savings, you may want to invest in real estate. Whether to live there or to rent it, this purchase is not made on a whim and the choice often persists between studio, apartment or house. The choice often falls on an apartment or a house. However, investing in a studio has many advantages if you have certain objectives.
An affordable first investment
For a first purchase, investing in a studio may be the right solution. Studios, by definition, have a small surface area and will therefore cost less than an apartment. Depending on the city concerned, a 20 m² studio will be worth on average between €70,000 and €150,000. The price of a studio being quite low, you will have easier access to a loan to acquire it. Whether to live there or just rent it, its cost will not weigh too much on your budget.
Strong rental demand
A studio will generally be more profitable than any other investment because it will pay for itself faster. Its profitability is even higher than that of large or medium-sized stores. In addition, if it is well located, many people will position themselves on it to rent it. They will mainly be students or newly transferred employees. As a result, a studio located in Paris, Troyes or Grenoble will be rented more easily thanks to the strong presence of students. Even if there will be a high turnover, your studio has a good chance of being constantly busy. In these student cities, it is not uncommon to see housing shortages. As a result, the value of the studios will increase in value very quickly.
Read also: Bordeaux: expert advice for investing in new buildings
Opt for a furnished or empty rental?
In the case of a rental, you have to ask yourself if the accommodation will be empty or furnished.
In the case of a furnished rental, tenants generally do not wish to stay there for long. However, a furnished apartment rent will be higher and there is extremely attractive taxation. However, you have to be careful with furnished rentals because there is a mandatory list of furniture. The tenant must be able to settle there and live there normally and instantly. The best way to opt for a furnished rental is to turn to student residences. A commercial lease will be signed with the operator of the residence. This lease guarantees the rental filling as well as the maintenance and the guarantee of the rents. In addition, thanks to the Censi-Bouvard device, it is possible to deduct 11% of the price during the first nine years of rental.
If you opt for an empty rental, you will aim for a more stable profile. The lease will last 3 years and therefore limits vacation rentals. However, care must be taken to offer a property in good condition that will easily and quickly attract tenants.
Read also: Landlord: tips for opening bed and breakfasts