How to invest in real estate on a small budget
To invest in real estate, you don’t have to have a huge starting capital. By thinking ahead and looking for the right opportunities, you can invest on a relatively small budget. In this article, we give you some ideas that you may find useful.
Buy an old house in the provinces
Yes, with a small budget, it is possible for you to buy a house outside of Paris. In the provinces, you can find a very good opportunity. If you are not necessarily aiming for the big cities, you can realize your dream of buying a flat or a house. Average prices are available in the various catalogs. You will see that without a well-funded bank account, you can be a property owner. Knowing that for the real estate loan you must take out, your contribution will be at least 10% of the total amount to be borrowed, with a little willpower you can do it. In your real estate project, think also of the social accession loan (PAS) and many other small loans of this kind.
Buy a studio apartment
On a tight budget, you can opt to buy a maid’s room or studio apartment and rent it out. There is usually no shortage of applicants, provided they are well located. Strategically, you should target university towns and areas. Their profitability varies between 4 and 6% per year. This is a good start to investing in real estate. Before investing, it is advisable to evaluate all the repair and renovation works.
Buy a parking space
Much cheaper than a flat, a parking space is a good start to investing in property. In mid-2020, it was possible to own one for less than 25,000 euros. To optimize your investment, target cities with high density and mobility, city centers where it is difficult to park. Car parks are an interesting investment. The advantage of a parking space is that the rental rules are less rigid, the risk of deterioration is low and the return can be as high as 10%.
Invest according to your means
It is possible to build up your property portfolio on a small budget. The key is to get the right information and adapt your needs to your means. Invest in cellars or buy shares in Sociétés Civiles de Placements Immobiliers (SCPI). These are companies that manage flats and pay you your share of the various rents each year.