Real estate investments for dummies

Tips on how to successfully invest in real estate

Why you should invest in real estate

There are many ways to prosper, get rich or make a fortune, but we know of no other investment vehicle that offers as many benefits as real estate.

Another possible choice would be to redouble your efforts and work more hours per week in order to raise your million. But let’s be honest! How long have you been working and how much money have you managed to raise so far?

You could invest in the stock market, but you would be subject to the fluctuations of this type of investment, not to mention the fact that you won’t be able to benefit from the leverage offered by real estate, with a few exceptions. You could discover a genius idea that will make you an instant millionaire or hope to win the lottery! Good luck with that!

Let us list some of the reasons why real estate should be part of your strategy to become richer over time as we know from experience that not everything is rosy and that real estate, like any business, has its disadvantages and drawbacks.

Questions to ask yourself before investing in a new real estate program

Do you want to invest in new real estate to build up your assets or secure a future income? It is a beautiful project, which should not be taken lightly. Here is what you should ask yourself before investing…

What are the benefits of new real estate?

Unlike the old one, new real estate allows you to personalize the property so that it adapts to your desires, with a view into a future rental investment (number of rooms, equipment, location, square footage, etc.).

How to choose a property developer?

Several criteria are to be taken into account to choose a developer who will meet your expectations. In particular, you should be interested in his/her knowledge of the market, his/her reputation and hi/her seniority.

How to select the right location?

When making a rental investment in a new property, it is important to keep in mind its future resale as well as the risk of rental vacancies. It is therefore essential to choose the right location for the house.

Which square footage should you choose?

The surface area of the property depends both on your financial capacity and your preferences (target customer category, chosen city, etc.). Whatever your choice, you must always keep the rental profitability in mind.

Rental investment

Investing in rental real estate consists of buying a home to rent in order to receive additional income and build up a financial asset. This investment can be optimised thanks to tax benefits that reduce income tax. Indeed, most legislators and governments authorize tax deductions in return for a rental commitment. Any taxpayer who pays taxes can therefore benefit from suitable tax exemption solutions. 
Rental investment is the only investment that allows you to build up an asset which is financed on credit. Obviously, various rental investment programmes exist and optin for one allows you to increase your assets smoothly and to benefit, once the purchase steps have been concluded, from an appreciable additional income. Provided you make the right choices…

Keys to a successful rental investment

Select a buoyant neighborhood
Choose a city characterized by continuous population growth, a neighbourhood with good public transport links, a city council with commercial infrastructure, etc.
Buying a home is above all an investment
Do not involve your heart in choosing the property. Indeed this one will not be your main residence and too much feeling could make you lose sight of your primary objective: the search for a profitable investment.
Don’t look for excessive profitability
Think about tax exemption instead! Given the performance of conventional investments, a return of 3 to 4% is very appropriate. On the other hand, a real estate investment always increases in value over the long term.

Investing in real estate abroad

It is actually possible for any taxpayer to invest in real estate abroad. However, it is advisable to give preference to properties in Europe or the United States, where the political and economic situations are predictable. Moreover, in times of crisis, the price of rents tends to fall sharply. Before acquiring a property abroad, you will have to go through several stages. First of all, it is important to check the land register. Some countries make it complicated, even difficult, for people to own property. The future buyer will also need to know the amount of taxes at the time of purchase.