The stone is part of the fetish placements of the French. In addition to diversifying an estate, buying real estate for rent has many advantages. Provided you have a good deal.
With favorable conditions for home ownership, buying real estate for the purpose of renting it is an attractive investment. The key: rents to supplement his income and a possible capital gain on resale. But all the opportunities are not good to seize and the prudence must remain in order.
Define your goals
Not everyone invests in rental property for the same reasons. Is it to anticipate a loss of income upon retirement? To aim for medium or long term added value? To acquire a property in a city where you want to live your last years? Or simply to pass on an additional good to his children? Each investment project is unique and specific to the investor. Before launching, it must therefore take stock of its desires and expectations.
Target quality real estate
Once the project is defined, it remains to find the ideal accommodation. The buyer must first choose between new and old, then study a number of criteria such as: location – is the neighborhood nice? Are there schools and shops? Means of transport? etc. – the property itself – Will it be easy to find tenants? Is it better to rent furnished or empty? etc. – and, of course, its price. So many points which have an impact not only on the vacancy or not of the property and on a possible gain on resale.
Choose the right investment strategy
Last step before purchase: the choice of financing. Is it better to use a bank loan or, if possible, finance all of it with equity? You should know that mortgage has several advantages. Not only are interest rates currently favorable to the borrower, but in addition the interest paid is, under conditions, partially deductible from property income. It is also possible to opt for a hybrid strategy combining a portion of personal contribution and another of borrowing. By doing so, the owner lightens his savings effort every month without investing all or almost all of his savings.