Real estate can be a profitable investment, provided you do not invest at random and take tax into account in particular. Discover rental property and study all investment solutions in stone.
The Right Purchase
The purchase of an apartment or a house can also be done for investment purposes, it is a highly appreciated investment in Spain. There are different ways to make money with real estate investment: either by the value of the investment which can increase (the objective is then to generate a capital gain on resale), or by property income which will be collected via rents after deduction of charges and taxes.
The first thing to do before you decide to invest in housing is to calculate its rental profitability. It is the first golden rule to succeed in your real estate investment, especially in a context of low rates where housing prices are high compared to income and rents. You can, for example, use good rental return calculation services. As you go for the Investcosta del sol the options are perfect. You can find the V44 Villa Blanca, V47 Aloha 40 or V48 Apartment Los Granados for your choice. Some of them are penthouses, some are villas and all of them are perfectly by the side of all the privileges of life.
The Best Study for You
This will allow you to study the interest of this solution and to compare it with other types of investments or with this classification of the rental yield in 100 big cities. You can see that depending on the city chosen for the purchase and rental of the accommodation, the average yield will not be the same at all. Large disparities can also appear from one district to another. If a rental property investment in Paris has certain assets from a heritage point of view and hope for added value, it is quite different in terms of rental profitability. It’s up to you to determine what your medium and long-term goals are and the best ways to get there via the right real estate investment:
- Create additional income to prepare for your retirement, for example, increase your total wealth, reduce your taxes by investing in a tangible asset, place a few tens or hundreds of euros per month, invest an already existing capital, optimize real estate assets, etc.
- In the vast majority of cases, investing in the rental will only be interesting in the long term, that is to say over many years. In addition, it is one of the only investments that can be made on credit, which makes it one of the preferred investments of the French. Some people borrow to rent with zero euros of contribution (this is called a 110% purchase). It is therefore one of the recommended ways to build up a heritage.
You have to take into account your local rental real estate market, trends in the neighborhood (is it developing well? Will it be more attractive in a few years?). You will also have the choice between investing in new housing, often with tax exemption and investing in old real estate with or without work.