Real estate is an excellent alternative to getting rich. In fact, it is often a long-term process. Generally speaking, those who are hesitant to enter the real estate business speak of insufficient seed funding. However, investing in real estate does not always require a fraction of a few million euros. It is even recommended to start at the bottom of the stairs. To be successful in real estate investing, the key is to develop well-established operations. From purchasing to rental management, as well as maintenance work, a long educational path is to be followed. It is not recommended to apply a large amount at the beginning. It’s also best to focus on one market, so you’ll specialize over the years. Of course, this allows you to develop your skills as well as your field of work. To this end, there is more than one way to make money from real estate. Find out with this guide how to get rich from investing in real estate.
Is it possible to make money from real estate?
The answer is yes. Real estate is one of the best ways to make money and build wealth. It will still be necessary to know how to do this. It is possible to get rich in real estate in the short and long term, even without the need to rent a property. Know that real estate is a very big field.
Some people think that making money online is easier than making money from real estate. Both are difficult if you do not know what you are doing or what you want to do. However, investing in real estate remains a much safer investment to increase your income and create a sustainable property. And for good reason, it is undergoing less economic downturn compared to most financial products. Moreover, it provides a more attractive return on investment than the return on traditional savings products. Above all, you need training and the site could be full of good real estate sites like Serialinvestisseur for example.
How do you earn money from real estate? Different types of real estate investments
There are many solutions to making money from real estate. But know that in real estate, profit is made by buying. Here are some options to easily earn real money. It will be necessary for each case to accurately calculate the ROI with all numbers as is the case with the rental return program.
Short-term or seasonal rent
We often talk about seasonal rent, but sometimes we also use short term rent. Actually, it’s the same procedure. Often it is rental housing. The aim is to provide guests with fully equipped accommodation so that they can stay there. Whether for a night, a week, a weekend, or a vacation. It differs from the long-term rent for someone who wants to settle in the house in question.
When we talk about short term rent, we are referring to night rent. That is, it is performed regularly throughout the year. We often find this case in big cities. In fact, in this type of investment, the acquired customers are in most cases business customers. Therefore, he needs permanent housing. Thus, you will be renting between 2 and 26 nights of each month throughout the year.
There are many advantages to renting short-term accommodation. Among these advantages is a regular source of additional income and excellent profitability. In fact, if you settle in a well-known and highly sought-after geographical environment then you have a good chance of making your home profitable. Obviously, the more dynamic your city or region, the more customers you will purchase. The short-term rent also allows you to never leave your home empty and support it.
This type of rental originated in the United Kingdom and is becoming increasingly popular nowadays. Who says that his roommate immediately hints at college or university students. In fact, they occupy a large part of their roommates, but they are not alone. Many young workers, and even the elderly, are in favor of this type of employment.
Investing in a consortium can greatly increase your profitability. You get a much higher rent than traditional rent. If you own a 4 bedroom apartment, then you will get the rent per bedroom.
Additionally, taxes are also more favorable in shared housing. To start a shared residence, you need to rent your own residence with furniture and all the things necessary for living. Basically, it rents out furnished accommodation. So, you can declare your income under LMNP status which offers great benefits. Of course, this allows you to reduce all fees and labor just as in the case of the leasehold rental. In some cases, you may be exempt from your roommate’s income tax.
Investments in furnished rent
Investing in furnished rent has become a very attractive and popular solution in contrast to abstract rental. Furnished accommodations are accommodations with all the essential equipment to satisfy the physical safety and health of the tenant. This type of investment is beneficial to the tenant and the owner.
One of the great advantages of this type of investment relates to the tax aspect. In fact, this can be done under two types of tax situation. There is LMP or professional furnished rental company case and LMNP or unprofessional furnished rental company case. Depending on your condition, you may benefit from discounted rates. These relate to buying and renting furnished housing.
These exemptions from customs duties can be up to 50% and also relate to housing maintenance and upkeep. In addition to discounts, you can also take advantage of the annual depreciation of the property and accompanying movable equipment.
Moreover, the owner will also benefit from exemptions for potential deficits, ISF margins, and real estate capital gains. With LMNP status, income declared as industrial gain or BIC is subject to low taxes.
Finally, furnished rent provides higher rental security compared to unfurnished rental. Indeed, furnished rentals have increased by nearly 20% compared to the bare rentals.