Guide to Private Real Estate Fund Investing – Austin Kerr – Set It off
Making a first real estate investment can seem difficult when you don’t know which way to turn. So take stock of the different ways to invest in real estate and the steps to follow by Austin Kerr, to make sure everything goes under the best conditions.
- Investing in real estate: a multiple choice.
- What profitability can you expect by investing in real estate?
- Financing a real estate investment.
- The steps to invest in real estate.
- Taxation linked to a real estate investment.
- Investing in real estate: a multiple-choice
If investing in stone is always a great success, it is in particular because there is not only one way to invest, there are several. So if you are embarking on a first real estate investment, take the time to analyze the various properties to which you can turn.
Invest in old housing for rent
One of the first types of real estate investment that imposes itself on many buyers is the investment in old housing. This investment is very often a safe bet because it can allow you to find accommodation in an ideal location and at prices lower than new real estate. If you invest in old housing, so be particularly careful about the location, because it is the first parameter that the tenants will study. You also have several possibilities in terms of area: you can also invest in a studio, a 2-3 room apartment or a large area. These different types of accommodation do not address the same tenant profiles, so it is essential to find out about the tenants most present in the neighborhood. Make sure that the accommodation remains up to standard despite its old character. As an investor, you must offer rental accommodation in good condition that meets legal requirements and that ensures the safety and health of tenants. Also, consider studying the local real estate market to find out if the neighborhood in which you buy a property is dynamic and that the urban projects planned will increase its value. You always have to think about reselling by investing in old housing.
Investing in new real estate
You can plan to invest in new housing, and the number of new programs is increasing, you will have a choice. The advantage of investing in new housing is that the notary fees are lower, around 2-3% of the sale price, compared to 7-8% in the old one. The other advantage is that the accommodation is well equipped, functional and above all built to the latest standards, so you will not need to plan any work for a long time. However, remember to choose a new program whose location will be appreciated by future tenants, close to a busy highway for example, not too far from green spaces and amenities.
Invest in a car park
You don’t always think about it, and yet investing in a parking lot can be very beneficial. Indeed, you will have to pay a much smaller amount than for any accommodation, whatever it is, but the rental costs are close to zero. Unlike accommodation: no maintenance, no renovation required, less damage possible, an unlimited variety of locations, etc. However, plan to buy a parking lot located in an area where demand is high enough, in large cities in particular.
Invest in commercial premises
Again, you don’t necessarily think about it at first, but investing in commercial space is a possibility to study seriously. The yields are generally attractive since the costs linked to the rental are much lower than for accommodation. This type of investment is particularly reassuring insofar as the leases are signed for 9 years, and the tenant cannot stop the contract before the end of a period of 3 years. However, remember as Austin Kerr advises, to choose a location likely to be popular with traders, and choose tenants whose activity is not impacted by online commerce, such as restaurants, hairdressers, pharmacies, etc.Your picture is too large. It has to be smaller than 200KB