7 mistakes not to commit for his real estate investment

(Partner Article) Buying to invest is not something simple. It is an investment that needs to be thought through, which must be prepared in advance. Rental Investment lists for you the mistakes not to commit in order to achieve profitable real estate investments.

1. Do not prepare your investment strategy

Rental real estate investment requires preparation and reflection. It is important to take the time to refine your project. Real estate is a job, there are a lot of concepts to master, if only level of tax regimes and laws in force.

Before you get into real estate, you also need to know what type of investment you want to make: renting a home to benefit from Lease status or a furnished apartment? Purchase or resale? Do you want to be annuitant immediately? Is it to leave a real estate heritage to your family?

So many questions you need to ask yourself in order to better prepare your investment.

We must also look at the location of the property. The latter really makes the difference. This can allow you to avoid too long rental holidays, a significant profitability or a gain on resale more or less interesting. Choose the best neighborhood to ensure a strong rental demand.

2. Stop at the first obstacle

Making a rental investment is a difficult task, it may be that you encounter some difficulties such as a refusal from the bank for example. It is not because you suffered a first failure that it will be the same with another bank. You must persevere. Look for an interlocutor who will trust you and who will be ready to give you a mortgage loan.

3. Make a loan for too short a period

The stage of thereal estate loan is crucial for your investment. It is tempting to want to repay your credit as soon as possible by borrowing for a short time. However, it can hurt you. If you want to make another investment in order to build a more substantial wealth, the banks may reject your project because your debt ratio will be too high.

Investing over 20 years is the right solution. Your charges will not be too heavy and you can reinvest quickly after your first project.

When it comes to financing your investment, you should also pay attention to the rates offered by the banks. At this moment the situation is exceptional and highly interesting for investing in real estate in France. Knowing that these rates are low, avoid variable rate loans, they could only increase.

4. Underestimating the work envelope

You want to spend the least amount of money and that's normal. However, this search for savings can hurt you. If you underestimate your loan to do the work, it may be against you. Indeed, it is better that you estimate the work beforehand as accurately as possible, even if you want to borrow a little more. Do not hesitate to refurbish everything in the house. This will allow you to finance these renovations with credit rather than having to take that money out of your pocket later.

5. Too wait

It is perfectly normal to want to wait to find the rare pearl. Unfortunately, waiting too long can sometimes miss real opportunities. The perfect real estate purchase does not exist, only lots more or less interesting. It is important to be realistic in one's research. For this, you can call a specialist company to find a property as close to your expectations as possible. Moreover, being an expert, she will be able to put you in perspective in order to keep your feet on Earth. A property that may not seem right on the spot, could however be a profitable investment. A professional will find you the good deals and ensure you a rental profitability.

6. Invest all your personal contribution in the project

Put all your personal contribution will allow you to reduce the duration of the loan. However, it must be taken into account that it may prevent you from making another investment because you will no longer have your own funds. This situation may be suitable for you if you only want to make one investment or if you want to buy your principal residence. And that will not allow you to benefit from theleverage banking that helps to build up a real estate asset quickly.

It is obviously necessary to have a contribution to access the loan. In order to repeat the operation, it is necessary to engage the minimum of personal contribution.

7. Do not manage your property

Rental management is a time-consuming task. To avoid the higher costs, you may be tempted to take care of the management and renting of your property yourself. However, if you delegate these tasks you will be able to clear more free time and use this time for another investment. Thus, management costs will be quickly absorbed by the rental income of your operations. By calling on professionals you will no longer have to worry about your past investments, you will only have to receive the rents each month.

In order to ensure a high return, you can call a specialized agency, such as the company Irental investment. By providing you with a turnkey service, they advise and follow you during your investment, from the development of your project and its financing to its rental management. Rental Investment teams will find real estate investment opportunities thanks to property hunters with access to property off-market. A property completely renovated and tastefully decorated to ensure the love of tenants, is delivered to you at the end of your project.

Thanks to their presence online and in several cities of France, rental investment allows you to launch your real estate investment at a distance. It's a real opportunity for expatriate investors. Make an appointment to make your project a reality.

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