I set myself the objective at the beginning of the year to invest in real estate in 2014. It is now only a matter of weeks, or even days, before the signing of the authentic deed takes place. be operated. Now is the time to share with you the numbers behind this investment. What is the desired profitability ? What will be the rents collected ? How is it desired to limit the risk on this rental investment? These are some of the questions I will answer in this series of 2 articles. Again, for the sake of readability, the subject will be covered in several parts. The second article will appear shortly.
It was therefore at the beginning of the year that the idea of investing in real estate came to me. After some hesitation some time ago, 2014 will be the year of a big leap into the unknown!
After having failed to find the rare pearl for the first time, the research continued, on the internet and of course by visiting several properties. Finally, a property corresponding to my criteria was finally identified, then the signing of the sales agreement took place at the end of last February. As a reminder, my choice fell on an apartment building , for a certain number of reasons that I will not recall here (more advantageous price per m², independence vis-à-vis a joint ownership, etc.).
The negotiation part then began, giving rise to fierce competition between my current bank and a credit broker. After a salvo of exchanges between bank, broker and myself, it is finally my current bank which will finance this apartment building, a victory in the best of 3 rounds :
Before I started, the file was studied for a long time. Estimates and figures have been tweaked many times. Two main reasons for this:
More seriously, this second point was as valid for Madame as for myself. Financial risk is not our cup of tea, so it had to be kept to a minimum. We have 2 children (soon to be 2 years old and 5 years old 🙂 ) and a main residence purchased at the end of 2009 for an initial period of 25 years (but more than a little over 12 years remaining on the mortgage to date!), as well was it absolutely not possible to jeopardize this!
To limit this risk, we have therefore:
Although not associated with this investment, our monthly savings capacity already in place is also a reassuring factor in the event of a hard blow. So much for the approach that Madame and I have had to this investment, and the way we wanted to reduce the risk inherent in this type of investment.
More to come soon, stay tuned! 🙂
What do you think of the approach implemented? Do you have any other advice for securing this kind of investment?