The rental investment is an excellent alternative to investing in real estate. Depending on the location of the property, its profitability can be profitable. Thus, before any investment in this area, it is important to know where to turn in order to best optimize its income.
Top 3 cities to invest in real estate
Finding the right city is an essential step in making a good real estate investment. Here are the top 3 cities where an investment in real estate can be profitable.
In this French region, there is a probable evolution of the real estate market. In February 2022, the number of buyers had increased by 7% compared to the number of properties for sale. The market is dynamic, as a result, a probable increase in the selling price would be in sight for the next few months. For now, the price per m² of an apartment in Lyon is on average €5,358.
The real estate market in the capital is very dynamic. Faced with the number of goods for sale, the number of buyers is much higher. The demand figures are estimated at 13% compared to the supply figures. The price per m² in Paris on February 1, 2022 is on average €10,208.
The big city in northeastern France is also one of the places where you can invest in rental property. The dynamism of the real estate market in this city is remarkable. During the month of February 2022, there is a 13% higher number of buyers compared to the number of properties for sale. The average price per square meter for apartments in Reims is €2,558. As for houses, it is estimated on average at €2,613.
Should you invest close to home or move away?
The location of a home is very important for any real estate investment. This is a factor that ensures the profitability of the investment. A priori, local investments are to be preferred. Indeed, they allow better management of the property, especially for furnished rentals.
Even with a manager, the landlord sometimes has to resume the relationship with the tenant. Buying a property close to you is not only easier for management. It is an investment choice that allows you to acquire real estate at the right price.
However, even if we consider that buying close to home is more reassuring, it is possible to invest anywhere and in complete safety. The distance can allow you to widen the possibilities of placement. By finding a real estate market that is more active and buoyant than that of your main residence, you ensure a more stable and substantial income.
How to start in real estate investing?
To start in real estate investment, you must first define your project in the smallest detail. As part of a rental investment, the choice of location is essential.
Ideally, cities in constant economic and demographic development such as Lyon, Paris or Reims are to be favored for optimal performance over the long term. In addition, the rental market of the target city must be buoyant. Make sure that in the region, the demand is much higher than the supply.
You must also be aware of the amount and evolution of rents in the chosen city in order to guarantee constant profitability. Above all, try to invest reasonably for your first purchase. The rental investment presents certain risks, in particular in the event of unpaid rent or rental vacancies. Always think about a potential resale of your acquisition.