Published on : 01 February 20193 min reading time
Invest in stone, yes this is a really interesting option! But, do you really have to go there unexpectedly? Is the best real estate investment the one you originally thought of?
The best real estate investment: what to know!
When you want to invest in real estate, you have the choice between a direct investment and an indirect one that involves the acquisition of shares through a property management company. In the first case, you have the option to opt for a new or old investment, each of them having advantages and drawbacks.
Investment via SCPI
SCPI is a collective investment scheme specializing in the acquisition, management and valuation of real estate assets. It is usually one of the alternatives available to you when you want to make an investment in the real estate sector. For this, you simply need to buy shares in the form of capital, to become a shareholder within it. More specifically, to invest in SCPI, you have the choice between those known as and those called yield. Then everything will depend on your motivations, but also on the desired results. Be that as it may, investing in a SCPI (whether tax-based or yield-based) offers some advantages, but also drawbacks.
How to achieve the best real estate investment?
For a rental investment, choose purchases from motivated sellers
The amount you pay for the acquisition of your rental real estate and the rent that you can profit from are both very decisive. Thus, the ideal would be to buy not too expensive, but also to refrain from overestimating the future rental value of your new acquisition.
Set a strategy before you commit
Real estate investing is not as simple as some people tend to want to believe, especially if it is related to rental investment. That said, risks can sometimes completely undermine your expectations. That’s why before you commit, you really must give yourself enough time to study your investment well.
Evaluate the tax impact of your investment
Taxation (especially that of land) is an element to consider at the time of your investment. This will inevitably affect your rental income. You must know this impact very well or at least, have an idea before buying your property.