The better-off rely above all on real estate as a pillar to make their investments grow. The super rich prefer to invest in real estate because this type of investment allows them to preserve their capital ... while ensuring a regular income.
It remains to find what to invest in because the best returns are not obtained in the housing market.
Yes, this is the part of the sector that everyone thinks about and that is why the returns are lower (among other things).
Simple supply/demand effect.
We must, therefore, look for other alternatives to succeed in finding more interesting returns.
Let's focus on investment ideas in high yielding property!
The buy-resale
The purchase-resale is an avenue to be explored, in particular to optimize the added value of a property. The idea is to buy a property and transform it (enlarge, renovate ...) for a more interesting added value. Granted, this is an investment that can come with risk, but with the right tricks, it is possible to make larger gains on resale.
Furnished rental
Furnished rental is an investment strategy that is attracting more and more landlord owners.
It is true that furnished rentals provide on average 15% to 20% greater profitability than bare / empty rentals.
The investment property
Another interesting rental investment is to invest your money in an investment property. The objective of this system is generally to purchase an entire building, and then rent out each unit. The idea is to earn less per unit per purchase, to optimize income per unit. It is the same principle as the large distribution chains.
Subletting
Subletting allows households to earn income on a home they rent. A tenant can indeed sublet his home, of course ensuring that certain conditions are met. In principle, subletting is prohibited with regard to main residences, except with the expressly agreed agreement of the owner.
Lot division
For lot division, the idea is to collect several revenues on a single property divided into several lots. Indeed, it is always more interesting to rent 2 or 3 studios than one and the same apartment.
Rent cellars
Today, cellar rental for storage is a particularly flourishing niche, especially in large cities. Customers can be individuals or professionals looking for a place to store goods or business.
Invest in commercial walls
Investing in commercial or boutique walls has become very profitable today. Note that these are walls and not business assets. Compared to residential dwellings, commercial walls yield a return of 6% or even 8% higher.
Invest in a warehouse
Investing in a warehouse can be really advantageous in terms of profits. However, it should be noted that this type of investment is almost a business creation. In addition to the financing placement, the management, monitoring and maintenance of the warehouse involve a significant personal investment.
Hasan Root, a dream lover!