Real estate represents an excellent alternative to get rich. In fact, it is most often a long-term process. In general, those who are hesitant to get into real estate talk about insufficient initial funds. However, real estate investment does not always require a stake of several million euros. It is even recommended to start at the bottom of the ladder. To be successful in real estate investing, the key is to develop well-established processes. From acquisition to rental management as well as maintenance work, there is a long learning path to be taken. Placing a large sum at the start is therefore not recommended. It is also best to focus on a single market, so you will specialize over the years. Certainly, this allows you to develop your skills as well as your field of action. To this end, there is more than one way to make money with real estate. Discover through this guide how to get rich by investing in real estate.
Is it possible to make money with real estate?
The answer is yes. Real estate is one of the best ways to earn money and build wealth. It will still be necessary to know how to go about it. It is possible to get rich in real estate in the short term, long term and even without having to have rental property. Know that real estate is a very large field.
Some people think that making money online is easier than making money in real estate. Both are difficult if you don’t know what you are doing or what you want to do. That said, investing in real estate remains a safer investment to supplement your income and create a lasting wealth. For good reason, it is less subject to deterioration in the economy compared to the majority of financial products. What is more, it offers a very attractive return on investment than that of conventional savings products. Above all, you need to train and on the internet it is possible it is full of good sites on real estate like Serialinvestisseur for example.
How to make money with real estate? The different types of real estate investments
Several solutions exist to make money in real estate. But know that in real estate, the profit is earned with the purchase. Here are some options for making real money easy. It will be necessary for each case that you calculate precisely the profitability of the investment with all the figures as with the rental yield software.
Short-term rental or seasonal rental
We often talk about seasonal rental, but we also sometimes use short-term rental. In reality, it is one and the same activity. Most often, it is a rental of accommodation by the night. The aim is to provide guests with fully equipped accommodation so that they can stay there. And this, whether for a night, a week, a weekend or for the holidays. It differs from long-term rental which is reserved for those who want to take up residence in the house concerned.
When we talk about short-term rental, we are referring to a nightly rental. That is to say, it is done on a regular basis throughout the year. We often find this case in large cities. Indeed, in this type of investment, the clientele received is most of the time a business client. He therefore needs permanent accommodation. Thus, you will rent between 2 and 26 nights every month of the year.
There are many advantages to renting short-term accommodation. Among these advantages are a regular source of additional income and excellent profitability. Indeed, if you are placed in a popular and highly sought-after geographical setting, you will have a good chance of making your home profitable. Clearly, the more dynamic your city or neighborhood, the more customers you will acquire. Short-term rental also allows you not to leave your home empty and to support it.
This type of rental originated in Great Britain and nowadays it is more and more fashionable. Who says roommate immediately alludes to college or university students. Indeed, they occupy a large part in the roommate, but are not the only ones. Many young workers, and even older people, are supporters of this form of rental.
Investing in colocation can significantly increase your profitability. You receive much higher rents than in conventional rentals. If you own an apartment with 4 bedrooms, you will earn rent for each bedroom.
In addition, the taxation is also more advantageous in shared accommodation. To get started in shared accommodation, you must rent your accommodation with furniture and all the essentials for living. Basically, you rent furnished accommodation. You can therefore declare your income under the LMNP status which offers significant advantages. Of course, this allows you to reduce all charges and work as in the case of a bare rental. In some cases, you may even be exempt from tax on the income of your roommate.
Investment in furnished rental
Investing in furnished rentals has become a very attractive and popular solution compared to bare rental. Furnished accommodation is accommodation with all the essential equipment to satisfy the physical safety and health of the tenant. This type of investment is beneficial for both the tenant and the owner.
One of the big advantages of this type of investment concerns the tax aspects. Indeed, it can be done under two types of tax status. There is the status of LMP or professional furnished rental company and the LMNP or non-professional furnished rental status. Depending on the status, you can take advantage of a reduction in charges. These relate to the purchase and rental of furnished accommodation.
These exemptions from charges can go up to 50% and also concern the conservation and maintenance of housing. In addition to the reductions, you can also benefit from an annual depreciation on the property and the movable equipment that accompanies it.
In addition, the lessor will also benefit from exemptions for possible deficit and ISF margins, real estate capital gains. With LMNP status, income declared as commercial industrial profit or BIC is subject to low taxation.
Finally, the furnished rental offers a high rent security compared to the rents of unfurnished accommodation. Indeed, the rents for furnished rentals are increased by nearly 20% to those for bare rentals.