Investing in Real Estate: Tips for Success

Create additional income for retirement, house a parent or a child, finance your second home with a rental period … The purchase of a rental unit can be motivated by many reasons.

However, such an acquisition can not be improvised. To succeed in your real estate investment, three principles must be respected.

Invest in a geographical area that we know

Invest in a geographical area that we know

If you ask real estate investment professionals, the first rule to follow is the choice of location. Indeed, the goal is that the property purchased is easily rented and at a reasonable rent.

The rental demand must be strong. For the future landlord, nothing like choosing a home close to amenities: shops, transport, schools, economic hubs … But, to judge the attractiveness of an area, the best is to know the city in which one invests.

Choose your property rationally

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Unlike homeowners, tenants generally do not choose their home on a “crush”. Affect is irrelevant. To make a successful investment, it is necessary to remain very rational: quality of the location, optimization of the surface of the housing (few square meters lost) development (presence of storage space, a kitchen …) and amount of rent are the main criteria that should guide in the purchase of rental housing.

Optimize your acquisition

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The objective of a rental investment is to sustain a return and reduce the cost of acquisition. So we can start by optimizing its funding. In many cases, it is possible to finance its acquisition without contributions. In other cases, balancing the contribution and the monthly payments can enable the property to “self-finance”: the rents collected then entirely cover the monthly credit installments.

Another possible way: enjoy a tax reduction. One can for example bet on the reduction Pinel for a purchase in the new real estate, or on the realization of renovation works in deficit for a purchase in the old.

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