Rental real estate is a promising and useful investment for demographic and societal reasons. This sector is supported by the central banks who are trying to keep the economy afloat. Moreover, this sector is fully integrated in the real economy. To convince you, here are 10 good reasons to invest in real estate in 2022.
- Unlike the financial markets which require a lot of knowledge, the real estate market does not require special technical or financial knowledge, this market is within the reach of everyone.
- Without having a very important starting capital it is possible to invest on credit, the operation thus allows us to benefit from a significant leverage effect.
- The property is generally financed by the tenants, so there is no liquidity to take out, which improves our cash flow.
- The profitability offered by rental real estate is around 4%, a return generally higher than other products that can be found on the market.
- Since 2019 it has been proven that it is more beneficial to own rather than rent.
- The risk is less, indeed, investing in the stone reassures. The temporary vacancy of a property or an exceptional accident of the type; fire or natural disaster, remain the only risks to support.
- Borrowing funds to acquire a property increases its liabilities (debts) on the one hand, but also its assets, which consequently allows us to present better guarantees for new loans or mortgages.
- Investing in real estate gives you 100% control over your investment as it can be managed on your own.
- The rental investment allows to prepare serenely its retirement because once the loan is repaid, we benefit from a regular income.
- A property intended for rental real estate can make it possible to benefit from tax advantages, in particular, to transmit its inheritance to its heirs.
To conclude on these advantages, we will note that it is possible to invest in real estate in different ways. Indeed, this investment can be made in different forms, such as crowdfunding, real estate stone, luxury real estate, etc… SIPA crowd immo combines both crowdfunding and real estate « paper-stone », all the while adding his personal touch to complete unique projects.
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