It is unusual to see a building for sale. If you are interested in real estate, it is very likely that you have never seen one. Or that you paid no attention to it. If you’re not interested in real estate, the very idea that individuals can sell buildings and others buy them must seem strange to you . And yet, if you only knew…
I was still like you less than two years ago. But that was before. As an ad in I won’t say the name 🙂 could say. I am now the owner of a property of this type which brings me more than €1,000 in rent each month . By monthly installments directly into my bank account. Seriously. So, want to take an interest in buildings for sale?
A building for sale, nobody really pays attention to it. For what reasons ? No doubt several, which I will present to you now. I will then show you why you should still look into the subject. And up close. Closely.
When we talk about a building, we all imagine a building made up of several dozen apartments. Who says dozens of apartments says dozens of tenants. And therefore says colossal management time to follow the whole thing . Between entries, exits, odd jobs and other administrative procedures, in other words, you will not see the light of day. It’s scary.
When we talk about buildings, we imagine that the sums to be invested are titanic ! Indeed, what individual can afford to buy a property of such a size? How many hundreds of thousands of euros, or rather millions of euros, to acquire such a property? Won’t the notary fees be just as crazy? Agency fees? Ouch.
When we talk about real estate, we wonder where we could buy this type of property. In a traditional real estate agency? Surprisingly, you have never seen such ads. On the Internet ? You haven’t come across more. Rather strange, right?
And then which bank would be able to follow you on an investment of such magnitude ? With all the guarantees that your adviser has already asked you for the credit of your principal residence, how many tons of paperwork will be necessary for the purchase of an entire building? Won’t your mortgage broker laugh in your face? Anyway, you know from reliable sources that it is not possible to make a rental investment without a contribution.
It would be too easy otherwise and anyone could do it 🙂
Good. I think the frame is set. If I told you now that this is all cliché and that a building for sale can be an excellent real estate investment.
No, a building is not necessarily made up of dozens and dozens of apartments. For my part, I am the proud owner of a building made up of three lots, which remains quite manageable from a human point of view. And even if this were no longer the case, it would still be possible to outsource the management to a real estate agency. In a few words, a building is not synonymous with large building complexes but can correspond to properties with two to ten apartments . Which is quite satisfactory.
As a consequence of this first point, a building remains completely accessible to ordinary mortals. You don’t need to have won the lottery to be interested. Provided you do not focus on the city centers of very large cities, it is possible to find buildings with a profitability greater than 10% . These properties exist and it is possible to unearth from €130,000 to €300,000. Of course, some are much more expensive, but these are not the ones that interest us here. As stated in a recent article on townhouses, to invest well, don’t follow the crowd and invest differently. This is where you will get the best deals.
We don’t see the subjects we don’t care about. Unconsciously, we have been conditioned to make rental investment and apartment synonymous . But other avenues exist, such as car parks, garages and buildings for sale. By searching with these new criteria, there is no doubt that you will come across some pleasant real estate ads! 🙂
You are right, they will be less numerous than the classic apartment advertisements, ranging from small studios to voluminous T4 or T5. Without a doubt. Sorting will then be easier for you. Define your criteria and do your research accordingly. You will no longer spend hours comparing dozens of references, the choice being less.
Another positive point is the competition. Or rather the slightest competition. Few people are interested in buildings for sale. Take the opportunity to negotiate better and not to act in haste.
Do we continue in the positive? For an equivalent area, buying a building with four apartments will cost you less than buying four equivalent apartments. For what ? First, you will benefit from a wholesale price , thus mechanically lowering the price per m². Second, the notary fees for a single purchase are lower than those for four different purchases. What further improve the profitability and cash flow of this investment.
Let’s finish with your banker. I don’t hold them in very high regard, but that’s a completely personal judgment 🙂 . A building for sale will seem like an anomaly to them. You no longer fit into the boxes and no longer fit into their grids , which could make them, let’s say… Uncomfortable. By default, your bank will therefore be reluctant. But as with any project, prepare your file well, prepare your figures and your calculations. In one sentence, show them that it’s in their interest to follow you. And put them in competition with a broker, it’s a technique that will boost them a little! 😉
To conclude and as with everything, telling you that every building for sale is a golden bargain would be a lie. But there are certainly significant advantages in taking an interest in this type of property. So the next time you go through the real estate ads looking for a property with double-digit profitability , don’t forget to look at the buildings for sale by the way! 🙂
Have you ever thought about looking at apartment buildings for investing?