Luxury real estate investment:
why and how to do it?

Investing in luxury real estate is an important life project. More and more people, individuals and professionals, are investing in this type of property for many reasons. Here are the main ones:

The constitution of a patrimony

Building wealth is a common reason why most people invest in real estate. This can be an estate for themselves or for their child.
The idea is to acquire a property and adopt it as a second home, thus building a lasting legacy. Or buy a property and rent it out to live in later.
In effect, you make an intelligent investment, you become the owner of the property and you build up an estate.

The tax reduction

The rental investment allows you to benefit from tax advantages, thus a tax reduction. How can you benefit? By buying a new property through tax exemption schemes and then renting it out.

Good to know: This scheme is distinguished by the ceiling on rents set by the law.
You should also know that there are different tax exemption and tax credit schemes applicable to many types of rental investments. These are ideal for financing part of your project and guaranteeing its profitability.

Additional income

Investing in real estate for a rental project allows you to receive additional income. More precisely, you benefit from a regular additional income or rental income, each month, thanks to the payment of rent.
With this income, you can lead a more peaceful life financially. You can also save for an important project. Savings for a trip, children's education, and retirement is all possible. You can build up savings thanks to the income from your rental property or rents, which is more regular and more fixed than income from life insurance.

Nb: Whatever the reason for your real estate investment, or even your investment in classic cars, it is strongly recommended to get help from a specialist such as Jérôme Courville. Otherwise, choose the services of an SCPI real estate paper stone of return for the management of your rental investment.

By making a real estate investment, you also benefit from the credit leverage effect, especially if you choose real estate rental. The optimal return on investment promises a better leverage effect.

Safe and profitable in the long term, real estate investment promises immediate benefits. However, there are specific steps to follow in order to invest safely in real estate.

Prerequisites for real estate investment

Like any other investment, the real estate investment project must be prepared carefully, with a lot of thought. Beforehand, here is what you must do:

• Invest only when your income is stable
• Think about your bank loan application with a reliable institution
• Choose your investment project: purchase of main residence, purchase of real estate and rental
• Determine the type of property to buy according to your project type: new or old property, house or apartment, etc.

The mandatory steps

You must take into account the following 5 steps to successfully complete your real estate investment:

• The estimated budget

To calculate your real estate investment budget, you must first know your borrowing capacity. To do this, use an online real estate loan simulation tool.

Know that your bank will consider your financial situation, your health and your age to define the amount of your loan. In any case, avoid overestimating your ability to repay and try to anticipate the additional expenses.

• The search for a city to invest in real estate

Knowing where to invest in real estate is essential. The idea is to choose the right location for the property to ensure the success of your rental investment project.

To do this, you must:

1. Select a geographical sector or choose dynamic cities that interest you
2. Make a study of the sector, of each district to understand the relevance of the location
3. Find out about the average real estate prices
4. Focus on highly sought-after properties (for rental investment management)
5. Ask for advice from local real estate professionals
6. Make sure you know the potential of the area

• Choosing the property of your dreams

For the real estate search, an investor can opt for one of the following methods:

1. Go directly to a real estate agency
2. Seek the assistance of an expert like Jérôme Courville
3. Examine the different online real estate websites

• The real estate visit

Once you have found the property that corresponds to your expectations, move on to the visit of the property. During this time, it is advisable to remain careful, attentive and serious.

1. Ask about the current environment of the property, the projects and future works
2. Check the quality of the construction, its healthiness, its insulation, the state of the sanitary facilities, the electrical and gas installations, the heating, its energy performance, the presence of asbestos, lead and termites
3. Ask for a copy of the diagnostic reports for the rental property and a copy of the co-ownership regulations
   

• The administrative steps

Once you have visited your property and obtained bank financing, proceed with the administrative procedures. The last step to invest in real estate.

1. Formulate your offer to purchase and transmit it to the seller
2. Sign the sales agreement
3. Sign the final deed of sale
4. Make the payment of the totality of the sale price

Receive the keys to your new property

It is essential not to make a mistake when investing in new or old real estate. Here are some tips on how to make your real estate investment a success and take advantage of its benefits:

• Invest in a property located in an attractive area
• Select a property according to your rental target
• Make a study of the real estate market in the chosen location
• Choose a property that you like
• Think about choosing your own tenant
• Prefer a furnished rental with the status of a professional furnished renter
• Diversify your investments by choosing the Pinel law for rental investment
• Secure your real estate investment by taking out a guarantee
• Rely on a rental management provided by a real estate specialist such as Jérôme Courville.