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:
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:
- Select a geographical sector or choose dynamic cities that interest you
- Make a study of the sector, of each district to understand the relevance of the location
- Find out about the average real estate prices
- Focus on highly sought-after properties (for rental investment management)
- Ask for advice from local real estate professionals
- 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:
- Go directly to a real estate agency
- Seek the assistance of an expert like Jérôme Courville
- Examine the different online real estate websites
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.
- Ask about the current environment of the property, the projects and future works
- 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
- Ask for a copy of the diagnostic reports for the rental property and a copy of the co-ownership regulations
Once you have visited your property and obtained bank financing, proceed with the administrative procedures. The last step to invest in real estate.
- Formulate your offer to purchase and transmit it to the seller
- Sign the sales agreement
- Sign the final deed of sale
- Make the payment of the totality of the sale price
Receive the keys to your new property