Not long ago, real estate investment has been increasingly appealing to more and more investors. Whether it is a rental market or a purchase for a primary residence, the sector can prove to be both secure and profitable.

Despite its many advantages, many people still hesitate and ask themselves a lot of questions. If you are one of them, this article will help you see things more clearly.  

But to better understand our ideas, it is important to recap the key points to remember before committing yourself to the field.

What you need to know before starting in real estate

• Accessibility of the sector: To begin with, it is important to emphasize that the real estate sector is open to everyone. Despite this wide availability, it is necessary to master the techniques and information related to the operation.
• Legal training: Like any activity, real estate must be learned. It is essential to be well trained in all the legislations that govern it.
• Pinel scheme: The Pinel law, for example, promotes rental investment by reducing taxes. The goal is to address the shortage of rentals in certain densely populated areas.
• Malraux scheme: As for the Malraux law, it is a tax exemption scheme, just like the Pinel law. But unlike the latter, it applies to the rehabilitation or renovation of old buildings. The objective here is to preserve French historical and architectural heritage.
• Other real estate laws: Besides these, there are the Carrez law, the Scrivener law, the Neiertz law, and many other regulations governing real estate. It is always necessary to be informed about them in order to benefit from them.
• Recourse to a professional: Whatever your project, whether a property purchase or rental investment, calling on a professional is highly recommended.
• Types of real estate experts: Whether it is a real estate agent, real estate expert, property dealer, real estate developer, real estate inspector, or real estate advisor, all these specialists can support you.
• Risks related to lack of experience: Since you are still a beginner in the field, your choice could result in a significant loss. Otherwise, a great opportunity arises and you do not know how to take advantage of it.
• Personalized support: To avoid these kinds of situations, a professional can guide you at every decision and every step in the process.
• Home staging technique: For example, if you plan to put your property on the market, they will suggest tips to get a better price. Home staging to sell your property is part of this. This technique provides good results.

Why is real estate interesting?

Compared to other investments, the real estate market is less affected by the economic situation. Despite inflation or crisis, the sector promises a profitable long-term investment.

Certainly, exceptional circumstances such as building deterioration sometimes prove unavoidable. However, the cost of renovation work is quickly offset by the rents.

By the way, do not hesitate to read our article titled: 5 profitable renovations to carry out before selling.

That said, real estate can seem interesting insofar as it allows you to benefit from leverage. Thanks to this, it is still possible to acquire an overpriced property that costs up to 200,000 euros.

Of course, Mr. and Mrs. Average do not have this large sum. But by taking advantage of this opportunity, ordinary households can use the bank’s money for a major real estate purchase.

Especially as interest rates drop, leverage becomes more profitable. The lower they go, the faster the debt will be limited. Even if the individual repays the real estate purchase, the amount is barely increased.

Is it interesting to invest in real estate?

Let’s first talk about rental real estate. This field continues to attract more and more savers as it is a very promising investment. With the booming population, the demand for housing is gradually increasing.

Even better, the sector is defined as a low-risk investment unlike stock market investment. Moreover, there are many rental guarantees that protect you from various risks. The Visale guarantee and unpaid rent guarantee or GLI are among the best known.

By subscribing to this last insurance formula, the owner will be compensated for the exact amount of rent. This compensation is calculated from the first unpaid month by the tenant until the date of their eviction.

Acquiring a primary residence is also part of a very lucrative real estate investment. Thanks to the purchase, you obtain owner status.

Thus, there is no need to pay rent every month. When you run out of money, you will no longer be evicted at the end of the lease.

As an owner, you can make renovations according to your requirements. You are free to change the decor ideas to arrange a beautiful terrace or a cozy kitchen. If you want to repaint the walls, nothing can stop you.

For energy renovation work, every owner has the right to benefit from the tax credit for energy transition or CITE. As for the tax advantage, one can benefit from the zero-interest loan PTZ for a first real estate purchase.

Why invest in real estate today?

The Covid-19 pandemic caused a severe economic crisis worldwide. Indeed, the majority of households suffered during this dark time. Many employees even lost their jobs. Worse still, some cannot afford to repay their loans.

Why invest in real estate today?	Explanations
Asset appreciation	Real estate is a tangible asset that increases in value over the long term.
Additional income	Renting out property allows for generating regular income.
Investment security	Compared to other investments, real estate is perceived as more stable.
Tax advantages	Certain schemes allow for tax reductions (e.g., Pinel law).
Strong rental demand	In many cities, the demand for housing remains high.
Retirement planning	A property can provide income or capital for later.
Financing possibilities	Still attractive interest rates allow borrowing at a good cost.

On the other hand, real estate is less impacted by the situation. It continues to remain a better secure investment. The health crisis cannot slow down the demand for housing. On the contrary, more and more households plan to move after the pandemic.

They are looking for a pleasant place to live, far from bad memories. Investors are only taking advantage of this to increase their dividends.

In recent years, many laws have also become applicable to help you realize your real estate project. They relate to real estate tax exemption which takes the form of a tax reduction.

Among the best known, the Pinel scheme, Cosse law, Normandy law, Malraux law, and Historic Monuments aid prove to be very interesting.

Is investing in real estate profitable?

If this sector attracts a number of investors, it is because it promises them satisfactory profitability.

Investing in real estate is very advantageous to supplement income. Thanks to rental real estate, you can accumulate money quickly with rents.

If you choose to buy your main residence, take the opportunity to build savings. You no longer have to pay rent every month nor repay your loan. You can save your money.

Whatever your project, real estate offers you a guarantee of having a property at your disposal. You thus have the possibility to benefit your family members. The estate will then be passed on to your children and will increase in value over the years.

If you want to prepare for your retirement, real estate investment will suit you perfectly. When you have finished paying off your mortgage, the rents become your regular income for this purpose.

And even if you retire, the funds allow you to maintain a better standard of living. It is also possible to sell the rental property to invest the capital in another more lucrative project.