real estate investment, real estate crowdfunding, and the best investment companies comprise gaining a property to live in or renting it out and receiving monthly income (rents).
This is a concrete investment and one of the least risky; it is still necessary to have basic concepts to launch your project and possible. How to get started in real estate investing? Here are some tips and points to know to optimize your investments.
Getting started in real estate investing: where to start?
Have you chosen to develop your wealth by investing in stone, but don't know where to start? One of the starting points is to get acquainted with the real estate market and its specifics.
Knowing the basics of negotiation and property management can also be a plus to getting started in the best possible conditions of real estate crowdfunding.
To get started in real estate crowdfunding, define your project as precisely as possible
Before you start, define your project and possibly refine your search criteria.
- Would you like to invest in the main residence or rental property?
- Do you plan to live there after renting it out, or resell it to generate added value?
- What type (s) of tenants are you going to target?
- What budget do you have?
- Will you use a loan and what monthly payments will you be able to repay?
Answering these questions will allow you to know more precisely where to turn. Surround yourself with real estate, professionals who will provide you with their knowledge and help you see more clearly rather than launching blindly and risking making mistakes. Discover the different real estate investment support on this page!
Ten things you need to know to get started in real estate investing
- The choice of the location of your investment is essential to ensure its profitability: dynamic neighborhood, close to all amenities (shops, schools, public transport, etc.).
- Cities in economic and/or demographic development should be preferred for optimal long-term performance: development projects aimed at improving the living environment will always attract new residents and bring more value to your property.
- Always think about a potential resale of your acquisition: a property that meets a rental demand and is ideally located will sell quickly and may allow you to gain added value from it.
- The rental market in the targeted city must be buoyant. Always make sure that the demand is much higher than the supply and note the amount and evolution of rents to guarantee constant profitability. View our video to know the cities where to invest.
- Small areas are more profitable per square meter. However, tenants of this type of property move faster than those living in larger spaces (housing dedicated to families, for example), exposing you more often to a risk of rental vacancy.
- Traditionally, the profitability of a property is between 3 and 6%. Therefore, do not look for a higher yield, which will often be illusory.
- Old real estate is more profitable than new. However, you will benefit from very interesting tax deductions if you choose to invest in a new one.
- Invest reasonably for your first purchase: be sure that you can, including if we do not rent your property for some time.
- Rental investment presents certain risks, especially in the event of unpaid rent or a rental vacancy. So think about diversifying your investments! If you have invested in several small-area dwellings rather than in a single larger one, you will continue to receive income even if one of your properties remains unoccupied.
- Finally, be aware that another solution allows you to mitigate the risk of unpaid rents: subscribe to insurance that will take over in the event of non-payment of the sums owed by a tenant.
