Do you want to build a secure and profitable heritage? Rental real estate meets these objectives and offers other advantages.
You want to build up a wealth, without taking too much capital risk, rental property is a solution. Advantage of this type of investment: if you don't have the cash to buy an apartment, you can borrow funds. Real estate is the only investment accessible on credit; it is even advisable to finance your acquisition via a loan, because you will benefit from exceptional financing conditions. You will also benefit from the leverage effect of credit, that is to say that by investing a small amount at the outset, you will build up significant wealth over time, once your loan has been repaid. The rent you will receive from your tenants will cover your monthly loan payments, creating a sustainable investment platform. Not to mention if you require large sums of money in case of emergencies, you will have assets which you can liquidate. A quick house sale can help you, if you are in a pinch.
Be careful, however, despite its advantages, an investment in land must be considered for the future, a minimum of ten years to amortize the acquisition costs and hope for a capital gain. If you're still hesitating before investing in stone, here are three good reasons to try to do so.
- An attractive overall return
Borrowers always look for low interest rate, which is good for them, investors not so much. Indeed, today it is difficult to find a financial investment that offers a return greater than 2%, unless you accept a dose of risk. By investing in land, you'll be ready to obtain significantly more attractive returns.
Please note, once all taxes and duties have been paid, the net return on a real estate investment will be lower. Indeed, you may have to pay the tax on real estate wealth. In addition, in most countries every year, property income will be taxed with your other income. Not to mention the taxes specific to this type of asset: transfer rights when buying a property, tax on capital gains on resale and property tax each year.
- The prospect of diversifying your portfolio in several markets
By investing in stone, you can broadly diversify your assets. The main reason for that is, how the real estate market evolves as compared to other markets. So the type of rental assets that you acquire makes a huge difference in the rental market. For example, by opting for "safe bets" in the hyper centre of large metropolitan areas, you will guarantee your return without taking too much risk. On the other hand, by favoring the districts of the future of cities in full metamorphosis, you will boost your profitability, be able to hope for significant capital gains in the future, but also will suffer a greater rental risk.
Note: Investors, which invest in professional real estate (offices, shops, hotels, parking, etc.), make it possible to benefit from the growth of markets very different from residential real estate. These products thus make it possible to diversify the portion of your assets devoted to real estate.
- Securing part of your assets
Real estate is general a good bet when it comes to long term investments, even that only works when you make a good investment from the get go. Because even within the event of a robust crisis, prices adjust slowly downwards without collapsing during a few days. The only downside: within the event of turbulence, it's more complicated and longer to sell land assets than financial assets. Therefore it is always a good idea to keep some cash on hand to deal with tough times.
Last point: Never invest in real estate sums that are too large for your budget. Because contrary to popular belief, an investment in stone is not "self-financing", you will need funds to settle all the extras, including taxation.
Indeed, you have been a buyer!
Create a battle plan Creating a plan to sell your home is essential for prioritizing the sale and avoiding confusion throughout the process.
Why are you selling your house or apartment?An overview of your priorities for this sale: Are you more interested in a capital gain or a quick house sale?Additionally, your plan should include the followingThe best time to put the house or apartment up for saleA rough estimate of the costs associated with the saleHow to better prepare the house for visitsSet a competitive price for your accommodation Determine how you are going to sellPerhaps the most important decision you have to make is how to sell the house.Sell the house or apartment yourself, with a person-to-person transaction.
You manage all stages of the process, from marketing to administrative documents, including closing preparations or Hire a real estate agent who does all of the above for you.
All the renovations and repairs are done before the sale and also that the house looks aesthetically pleasing for potential buyers.
Too low, and you lose money, which you rightly deserve.Some important questions to ask when pricing a home:What are homes with similar characteristics worth in my neighborhood?Does my house have any extraordinary features that increase its value, such as a swimming pool?Is this house as well maintained as those recently sold in the neighborhood?
We assure you a reliable and fast sale!
“We buy any house nationwide at all price ranges” If you want a quick sale of your house, then let us quote a reasonable cash offer for you Today.
Fill out this form now and leave the rest to us.Contact UsContact us because we buy ugly houses.
