Investing in real estate in 2023: trends and profitable options
Real estate investment consists in acquiring a property with the aim of renting it or living in it. In France, real estate investment is the preferred savings formula of the French since 70% of the national assets are invested in real estate.
There are different types of investment to meet different needs:
- Rental investment (furnished or empty),
- Investment in one's primary residence,
- The investment for tax exemption,
- The investment in life annuity.
But the first investment in France remains the purchase of one's main residence.
The purchase of a property is often made with the support of a bank loan with a more or less long term. The purpose of real estate investment is to develop a heritage and at the same time build up capital and additional income.
Real estate at the heart of 2023 investments
In 2023, growth in the real estate market should continue, but at a slower pace.
The prices of new real estate are higher than those of old real estate. In 2022, the number of new homes built, sold or under construction for off-plan sales was insufficient to meet the needs of the French.
With the Climate and Resilience Law The law on climate change and resilience will prohibit the renting of heat-resistant buildings from 2023 onwards. Homes in category F and G established by the energy performance diagnosis are the first to be affected by this law. The significant rise in energy costs is driving developers to invest in real estate, but not just any real estate.
By 2023, real estate will be a priority asset class for investment, although properties will have to meet the latest energy standards.
Investing in rental real estate in 2023: Opportunities, Risks and Tips to maximize your gains
In 2023, rental real estate can be a good real estate investment, as it offers the possibility of generating regular income through property rentals. However, it is important to assess the risks and opportunities before making an investment decision.
Location can affect rental demand and rents collected. The areas with high population growth and good economies and a good economy tend to offer more attractive investment opportunities.
Investing in rental property enables you to receive regular rental income, which can cover the costs of your investment or even generate additional income.
The price of real estate can increase over time, allowing for a capital gain on resale.
Finally, rental investment in France allows investors to benefit from income tax reductions.
The costs of acquiring and maintaining properties, as well as the risks associated with vacancy and tenant management, need to be properly assessed to ensure that costs and taxes can be covered.
A financial advisor or real estate professional will be able to give you personalized advice if you want to invest in real estate.
Investing in new real estate: Guarantees, comfort and tax advantages to maximize your gains
The acquisition of a new property allows you to benefit from certain manufacturer's warranty and avoid problems related to the maintenance or renovation of an old property.
New homes are generally fitted with modern materials and equipment that meet the latest standards, making them more energy-efficient and comfortable to live in.
Investing in a new program can allow you to acquire a home in a building or neighborhood that is under development and offers quality services.
Rental demand is generally higher for new-build properties, especially in large conurbations, so you can rent quickly and earn regular rents.
In addition, certain tax measures allow investors to reduce their income taxes in exchange for a 9-year rental commitment ( Pinel Law ).
Green Real Estate in 2023: Sustainability, Profitability and Best Practices for a Prosperous Future
Green real estate, also known as sustainable real estate, refers to a set of solutions that apply the three pillars of sustainable development to the real estate sector. Green real estate tends to reduce its environmental impact by ensuring the sustainability of buildings.
To meet these targets, France plans to renovate 500,000 homes each year.
In order to encourage real estate actors, some labels and certifications have been created to promote good practices. Taking into account criteria such as :
- The impact on health and biodiversity,
- Energy expenditures,
- The need for water,
- Waste management.
Investing in green real estate is profitable in the long term. This makes it possible to follow the new regulations on energy consumption while being aware of climate change.
What are the different high-yield financial investments?
To prepare for retirement, for life projects or to leave a legacy, financial investment has never been as important as it is today.
In today's environment, short-term investments are no longer as effective and yield little return.
In the long term and contrary to popular belief, the stock market is the most profitable investment. While there is always a risk of loss, the strategy is to hold stocks over the long term in companies that pay dividends .
One of the favorite investments of the French is undoubtedly real estate. There are several alternatives:
- The purchase / resale of one's primary residence,
- Paper real estate (the SCPI ),
- Rental investment.
To minimize the risks when you decide to invest your money, it is important to diversify your investments as much as possible.
The different investment risks
Investing in real estate is not an easy task. At the time of closing the sale or throughout the ownership of the property, many obstacles may arise, which is why the buyer must be vigilant. To avoid wasting money, time and energy, one must be aware of the risks involved.
A) Market and tax risks
The real estate market is subject to fluctuations which makes it an uncertain market. The tax impact of the property purchase must be taken into account in the real estate investment project.
B) Risks related to the acquisition process
Not every property is a suitable source of investment. It is important to choose the type of property according to the real estate market. The choice of location is important in order to avoid losing value to the property. Note that risks related to the surrounding ecosystem and nearby construction projects can also have an impact on the value of a property.
C) Risks related to the owner's rental activity
For a landlord, rental management is not as easy as it seems. You must be vigilant about the risks: not finding a tenant, potential conflicts with your tenant or the risk of unpaid rent.
Investing in a town like Collioure
To live or to invest, Collioure is the destination to consider. This pearl of the Mediterranean is a well-served destination since it is located 23 km from the Spanish border and only 29 km from Perpignan. Nestled between the sea and the mountains, the city has inherited an architectural heritage of the highest order.
Unlike other seaside resorts that only live for the summer, Collioure has managed to preserve its authentic village feel, offering a wide range of cultural activities all year round.
It is possible to find in Collioure many offers on the real estate market that will meet your requirements and your budget.
If you are looking for a property in Collioure there is no lack of offers !