The various strategies without initial contribution
Investing in real estate has long been one of the most popular and proven ways to build lasting wealth and generate passive income. However, the thought of investing in real estate with no down payment can seem daunting to many aspiring investors. Fortunately, the DECORDIER Immobilier agencies are there to guide and advise you.
Thanks to the evolution of the markets, innovative strategies and emerging opportunities, it is quite possible to get into real estate on 2023 without having a significant contribution.
In this article, we will explore several strategies for investing in real estate in Thonon-Les-Bains, without an initial contribution.
1. Real estate crowdfunding
Real estate crowdfunding has become an attractive option for investors who want to participate in real estate projects without having to mobilize a large contribution. This method involves contributing with other investors to finance real estate projects such as residential constructions, commercial complexes or renovations. Real estate crowdfunding platforms allow investors to put in relatively small sums and receive dividends based on the income generated by the project.
2. Short term rental
Short-term rental platforms like Airbnb and Booking.com have opened up new opportunities for real estate investors. You can rent properties on a weekly or monthly basis, which can generate stable and often higher income than long-term rentals. This strategy is particularly suitable for owners who have an unused spare bedroom, an additional apartment or a second home.
3. Investing in Distressed Properties
Distressed properties, such as bank foreclosures or auctions, often provide opportunities for investors with no upfront investment. By skillfully negotiating with struggling sellers, you may be able to acquire a property for significantly less than its market value. However, this strategy requires thorough research and a good understanding of the local real estate market.
4. Real Estate Partnerships
Finding a business partner or investor willing to provide the initial contribution can be a viable option for investing in real estate without initial capital. You can enter into an agreement where your partner provides the initial financing while you contribute through your expertise in property management, property search or operations.
5. Investment in real estate funds
Real estate funds are professionally managed investment vehicles that aggregate funds from many investors to buy, manage and sell real estate. Investing in a real estate fund allows investors to participate in real estate without having to buy a property directly. This may be an option for those wishing to diversify their real estate portfolio without an initial investment.
6. Investment in new
Thanks to the PINEL system, your investment can benefit from tax advantages, and this will necessarily work in your favor.
As part of the Pinel system, you benefit from a tax reduction of 21% over a period of 12 years if you decide to invest in new real estate to rent it out. You use the bank loan to invest and to repay the monthly bank payments thanks to the rents collected.
The DECORDIER immobilier Thonon agency markets many new programs in Thonon-Les-Bains and its surroundings, find our new programs HERE.
Our real estate advisers are there to support you and inform you about the advantages of this Pinel system.
Indeed, the interest of positioning yourself on a Pinel rental investment is to take advantage of the leverage effect of the additional credit to obtain a mortgage without contribution. The financial advantages inherent in the Pinel device will be taken into account when determining your "remaining time".
Remember, however, that the Pinel law imposes a long-term commitment on the part of the lessor (between 6 and 12 years) and that the Pinel law also imposes an annual ceiling on the maximum rent. Also remember to check that the rents collected remain sufficient to repay a large part of your loan.
This is not the only advantage of investing in new programs, discover the other interests in our article HERE.
7. Buy an already rented property
You can also position yourself on a property that is already rented, which will add weight to your credit report because the amount of rent you will actually receive is already known in advance. Think anyway that the bank to verify that your loan will be entirely financed by the rents collected, will only take into account 70% of the amount of the rents. The remaining 30% is generally deducted and corresponds to charges inerrant to the rental accommodation such as works, co-ownership charges, etc.
In conclusion, investing in real estate in Thonon-Les-Bains without an initial contribution is quite possible in 2023 thanks to a wide range of innovative strategies. From real estate crowdfunding to short-term rentals, through partnerships and investments in new developments, the opportunities are numerous. However, it is crucial to do thorough research, understand the risks and develop a strategy that suits your financial goals and personal situation. Before you start, consult financial experts or our DECORDIER immobilier agents to make sure that your choices correspond to your situation and your aspirations.
Les agences DECORDIER immobilier vous accompagnent dans votre projet immobilier :
- Thonon +33 (0) 4 50 72 31 95 / e-mail : thonon@decordier-immobilier.com
- Evian +33 (0) 4 50 75 15 15 / e-mail : evian@decordier-immobilier.com
- Grand-Baie : +230 268 2828 / e-mail : contact@decordier-immobilier.mu
www.decordier-immobilier.com