Property investment is a popular method of accumulating wealth and securing financial security, offering benefits such as positive cash flow, property value appreciation and tax deductions.1. With its premium service, Bevouac offers advice on mortgages, asset management and investment opportunities in rental property and SCPIs.1.
Why invest in property
There are a number of key reasons why investing in property is considered a safe and profitable investment:
- Safety and profitability Real estate is recognised as a safe investment with a good return, offering a secure and profitable opportunity that is less affected by economic fluctuations than stock market investments. 12.
- Tax benefits Tax benefits: Investors can benefit from various tax advantages, such as deductions for mortgage interest and property repair costs, which optimise the housing budget. 135.
- Revenue streams and appreciation Property investment, particularly in the rental sector, generates a regular and steady income. What's more, property values tend to rise over time, which can lead to significant gains. 45.
These factors make property investment an attractive strategy for preparing for retirement, protecting the family and building lasting wealth. 12.
The different forms of property investment
Property investment offers a number of options to suit different investor profiles and financial objectives:
- Rental investment: Buying property to rent out, whether furnished or unfurnished, is a regular source of income. The Pinel law, for example, allows a reduction in income tax for properties rented out subject to certain rental and income conditions. 9.
- SCPI (Société Civile de Placement Immobilier)Investing in SCPI units gives you indirect ownership of professionally managed property, without the hassle of direct management, and with returns commensurate with your investment. 8.
- Real estate crowdfunding This form of investment enables property projects to be financed in exchange for potentially high returns, although it does not confer direct ownership of the property. 8.
Each method has specific advantages, such as tax reductions or rental income, and requires careful assessment of the potential risks and rewards.
Key criteria for successful property investment
To maximise the success of your property investment, it is crucial to follow key criteria that will guide you towards sound, strategic decisions:
- Rigorous assessment and inspection Before finalising any purchase, carry out thorough inspections to avoid unexpected costs associated with major repairs. Rely on the advice of experienced investors for this check 12.
- Debt Financing and Management : Use financial leverage wisely by opting for loans that maximise your acquisitions, while remaining cautious so as not to increase your risk excessively. 13. Manage your debt carefully and consider partnerships or low-interest loans to diversify your sources of finance. 15.
- Strategic Property Selection :
- Location Choose properties located close to essential infrastructure, green spaces and in neighbourhoods with good growth potential. This includes proximity to markets, warehouses and transport networks for commercial property. 14.
- Property type and profitability Determine the type of property in line with your investment objectives, whether rental accommodation or commercial property. Calculate profitability based on the ratio of rental income to expenses. 9.
- Property Management If you don't have the time or skills, consider working with an estate agent or property management company to navigate the investment process more efficiently. 15.
These practices will help you build and maintain a successful property portfolio, strategically aligning your actions with your long-term objectives.
Conclusion and outlook
Throughout this article, we have explored the many facets of property investment, highlighting its ability to generate stable income and offer significant tax benefits, while building a lasting legacy. Careful property selection, effective debt management and an understanding of the different forms of investment available are all essential keys to maximising your return on investment. This underlines the need for a strategic and informed approach to property investment.
By seizing these opportunities wisely and taking into account the key success criteria, investors can not only secure their financial future but also make a positive contribution to their community by adding value to properties and stimulating the local economy. The importance of turning to experts such as Bevouac for personalised advice and expert management of your investment is undeniable in successfully navigating this complex field. That's why property investment remains a preferred strategy for building long-term financial security.
FAQs
How can you invest successfully in property?
To make a successful property investment, it is crucial to analyse the market carefully and clearly define your project, particularly the type of property you want to rent. The use of a mortgage is often necessary and can increase the profitability of your investment.
What advice should I follow to invest intelligently in property?
Here are ten tips for wise property investment:
- Choose a sector with growth potential.
- Carry out an in-depth study of the market.
- Buy a property that suits your tastes.
- Take a sensible approach to your investments.
- Diversify your property investments.
- Seek the advice of a property professional.
- Consider tax exemption if you are investing in a new home.
How can you achieve a return of 10% in real estate?
To aim for a return of 10%, the purchase cost per room should be 60,000 euros. For example, if you are planning a three-bedroom shared apartment, the total cost of the purchase should not exceed 180,000 euros. For a shared property where each room is rented for 400 euros, this rule also applies.
What type of property investment offers the best return?
Car parks are a highly profitable investment option, particularly suited to smaller budgets. They often offer a better return than a house or flat.
References
[1] – https://www.inter-invest.fr/guides/immobilier/investir-en-2022
[2] – https://www.nexity.fr/investir/pourquoi-investir
[3] – https://www.vinci-immobilier.com/investissement-locatif/pourquoi-investir-dans-le-neuf/5-bonnes-raisons-d-investir-dans-l-immobilier
[4] – https://www.equipetardif.com/blogue/huit-raisons-dinvestir-en-immobilier
[5] – https://www.defiscalisation.immo/conseils/pourquoi-investir-immobilier/
[6] – https://www.lesechos.fr/patrimoine/immobilier/immobilier-les-criteres-dun-bon-investissement-1391323
[7] – https://kadran.com/investir/immobilier-entreprise/quel-avenir-pour-immobilier-entreprise/
[8] – https://www.maxi-mag.fr/societe/quelles-sont-les-cles-dun-bon-investissement-dans-limmobilier.html
[9] – https://www.ooinvestir.fr/conseils-en-immobilier/investir-ancien/financement/conseils/criteres-investissement-locatif-rentable.html
[10] – https://www.lp-promotion.com/lp-mag/marche-immobilier-perspective
[11] – https://www.investir.ch/article/perspectives-dinvestissement-2024-sur-le-secteur-immobilier/
[12] – https://www.immo-reseau.com/blog/10-cles-reussir-investissement-immobilier/
[13] – https://www.clubimmobilier.ca/blogue/les-10-cles-de-la-reussite-en-investissement-immobilier/
[14] – https://visitworld.today/fr/blog/1761/facteurs-cles-de-lattractivite-de-linvestissement-immobilier
[15] – https://www.investissement-locatif.com/investissement-immobilier/criteres-pour-choisir-son-investissement.html
[16] – https://fastercapital.com/fr/sujet/conclusion-et-perspectives-d’avenir.html
[17] – https://www.cbre.ca/fr-ca/insights/articles/canadian-real-estate-investment-forecast-to-hit-a-record-high-in-2023