Published on : 10 December 20215 min reading time
The financial situation
There is no investment for those who already have money. Investing in real estate is not just for the wealthy. Real estate is a way to get rich from nothing. It is possible to benefit from the leverage effect of credit. Buyers finance their property with the money the bank lends them. It is also interesting to make an investment thanks to the income generated by the rents. If it is a real estate development, it is first necessary to follow the first commitments between the buyer and the developer such as the purchase of the land, the hazards of the development of the project. It is also important to limit unnecessary expenses that only hinder any investment. Defining your priorities allows you to invest in a profitable investment. Remember to think carefully before you embark on the purchase of a property because it is a commitment that extends over many years.
Lack of time
Time is not an obstacle when it comes to a real estate project. Regular research and a good contact will allow you to become a homeowner in the best conditions. You can also entrust your project to a real estate loan broker in order to facilitate the search for your financing. A property will always be the same and will require little intervention over time. This excuse that you don’t have time is one of the most worn out. However, investing in real estate can take some time to become profitable. However, this does not mean that it is an unprofitable investment either. Investing in real estate is the safest way to save a good amount of money and still make money. A property never loses its value.
A very competitive investment
Many people have taken the plunge and invested in real estate (primary residence purchase, rental investment…) because the income is almost certain. Brokers, real estate agencies, developers and other experts in the real estate business are always looking for the best conditions for the investment. It is certainly a competitive environment, but there is always a way to get ahead of the game.
Crisis hinders business
Real estate is always a must. With or without money, people are always looking for a property to live in, to vacation in or to rent out. This myth hinders many people who are looking for the minimum conditions to start this type of investment. A property will always be sought after by many people. There may be times when the search will be less than others, but it will remain constant.
Fear of getting into debt
This fear is common among buyers, but it remains a myth. There are many ways to pay off your property and some brokers can offer you this type of consultation and service, so that you can invest with peace of mind. Real estate is part of the world of negotiation. It is possible to add to the amount to invest and then get the property. Do not hesitate to make improvements so that the property can increase in value and thus cover what has been paid in order to sell a little more expensive than the acquisition price. In the real estate business, we don’t lose money especially if we know where and when to invest. The guarantee is the property itself whose value will be guaranteed without generating a margin of devaluation risk. These myths created around the real estate sector serve more to scare than to warn. The value of a property increases over time, and according to the progress of the real estate market. A property is not only the safest way to invest, to guarantee financial stability and to ensure an inheritance to his children. The cost of credit is not always higher than we imagine. Apart from the interest rate of the real estate loan, you have to take into consideration the additional costs such as insurance, guarantee fees and file fees. The TEG (global effective rate) includes all the expenses related to the credit. If it is a loan to invest in real estate, the profitability of the rental investment after charges is often less than 3%. This is why the difference between the cost of the loan and the return on the investment net of charges and taxes is likely to be small. However, if you borrow for tax purposes, the financial costs generated by the loan will always be higher than the tax savings.
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