A real estate investor wants a return on investment. Some parameters mean that some apartments are more likely than others to bring their owners substantial income.
Many reasons plead in favor of acquiring small apartments to make a real estate investment. First, s + 1 apartment benefit from higher rent per square meter. A good surface is generally less than 40 or even 30 square meters.
Small apartments also have the advantage of having lower costs than large ones in terms of rental charges for example. In-house housing is usually paid for in terms of the number of square meters of housing, so in small dwellings, housing in a business is relatively smaller.
As an investor in real estate, a small apartment quickly finds takers when renting. This is usually a single person or a couple without children, a student…
The sale of small apartments located in good locations, also interest many investors in real estate. Therefore have no fear when acquiring this type of property, its resale is guaranteed for sure.
However, it is not advisable to target only studios. For example, a good apartment in real estate investment can be a small apartment s + 1. This may be a better option than a large studio, as an extra room is of interest to any future tenant.
In city centers, rental real estate is a good investment opportunity
In addition to its small size, the location is one of the most important features of an apartment. Look for a developing city with a growing population. Since students make up a large group of tenants, university cities are a good choice.
A good investment apartment is located near the city center or at least easily accessible via various means of transport. It is also advisable to avoid the acquisition of an apartment located in a high noise environment. This is unacceptable for the majority of potential tenants or buyers.
Real estate investors should also consider their own knowledge of the local real estate market when choosing the location of the apartment. It is good to know the region to assess its economic strengths and potential for development. In addition, the real estate investor must have a good idea about the market prices in this region to buy a property at its fair price.
Renovate an apartment to achieve a good return on investment
Investor and tenant for example do not see the property of the same angle. The tenant often has different criteria as to the choice of an apartment of those formulated by a future owner. Correct surfaces, features and minimum comfort are usually sufficient. The details, such as the connection of the washing machine in the bathroom also count for the tenant.
An apartment in poor condition can be a discovery for a real estate investor. For example, a deco that leaves to desire, dilapidated furniture can give an image of an apartment that would not be a good investment. By performing some inexpensive work (painting, buying new furniture …), the apartment will be more attractive to tenants.
Although the condition of the dwelling itself is not the most important criterion for an investment flat, it is essential that the real estate investor pays attention to it. Other criteria come into play, such as the future development potential of the region where the property in question is located, its presence of universities, various administrations…