Three good reasons to invest in real estate

You want to build wealth the safe and cost-effective ? The rental property meets these objectives and provides other benefits.

You want to build wealth, without taking too much risk capital, the real estate rental is a solution. Advantage of this type of investment : if you do not have the required cash to buy an apartment, you can borrow funds. Real estate is the only investment available to credit, it is advisable to finance your acquisition via a loan, because you will take advantage of financing terms currently outstanding. You will benefit in addition to the leverage effect of credit, that is to say that by placing a small amount start, you you are putting together an important heritage to term, once your loan has been repaid. The savings effort will be sustainable, since your monthly payments of credit will be in large part covered by rents received. In addition, you will optimize tax your operation, since the loan interests are deductible from your income property.

however, despite its strengths, an investment in real estate must be considered for the long term, a decade or more to amortize the acquisition costs and hope for a capital gain. If you still hesitate before investing in the stone, these are three good reasons to do so.

1. An overall yield interesting

If the very low level of interest rates is good news for borrowers, it is less so for investors. In fact, today it is difficult to find a financial investment that provides a return greater than 2 %, unless you agree to a dose of risk. Investing in real estate, you will be able to achieve yields much more attractive. Depending on the type of investment, they oscillate today between 1.5 and 5% for moderate risk, and may reach the double of the investment in the stone with a hazard the more important.

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Practice >> check out the attractive of SCPIS in partnership with Corum

Attention, once all the fees and taxes paid, the net return of a real estate investment will be lower. In fact, you might have to adjust the IFIS (tax on the real estate asset). In addition, each year, the property income will be taxed with your other income at the marginal tax rate and you have to pay above the social contributions to 17.2%. Not to mention the taxes specific to this type of asset : transfer duty when purchasing a property, tax on the added value to the resale and property tax each year.

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2. The opportunity to diversify your assets across various markets

By investing in stone, you can broadly diversify your assets. First of all, because the real estate markets do not evolve in the same way as the financial markets. Then, because according to the typology of the selected assets, you can mix and match between different rental markets. For example, in opting for "safe values", in downtown major cities, you will guarantee your yield without taking on too much risk. Conversely, focusing on the neighborhoods of the future of cities in metamorphosis, you doperez your profitability, can expect nice capital gains, but will also have a tenant's risk more important.

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note : the shares of REITS performance, investing in professional real estate (offices, shops, hotels, parking,...) allow you to benefit from the growth of markets very different from residential real estate. These products can be used as well to diversify the portion of your assets devoted to real estate.

3. Securing a part of your heritage

On the long term, real estate is still the investment that presents the lowest risk, as long as you choose your investment at the start. Because even in case of strong crisis, prices adjust slowly downward without collapsing in a few days. Only black point : in the event of turbulence, it is more complicated and longer to sell real estate assets as financial assets. Therefore, you should always keep in your wallet, a share of liquidity to cope with a hard blow.

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Practice >> check out the attractive of SCPIS in partnership with Corum

Last point : never invest in real estate are too important to your budget. Because contrary to popular belief, an investment in the stone does not "self-financing" not, you will need funds to cover all sides, including taxation.