Investing in real estate is an excellent way to make money, to create another source of income besides salary. But did you know that there are several types of real estate investments? In this article, you will discover two of these types of investment.
The rental investment
This investment consists of buying a property or home and then renting it out in order to obtain income each month. The rental property can be owned by an individual investor, a group of investors or a company. In France, there are several opportunities in this field and the return is not less. If you are an investor in real estate in Paris, you can expect a return of 2-3%.
The real estate business is very interesting and has many opportunities.
Let's move on to another type of real estate investment.
Real estate investment via SCPI
By definition, the SCPI are Civil Companies of Real estate Investment. They bring together individuals or legal entities who make a collective investment in order to buy the shares of a management company that owns and manages a real estate portfolio and to recover in return the rents of the rented properties minus the management fees. The investor thus invests his money in the real estate market and builds up an asset base that will provide him with regular income in return.
The purchase of SCPI shares can be done directly (the investor buys directly his shares from a management company or a wealth management consultant) or indirectly (via his life insurance through units of account). You will have the possibility of investing in two types of SCPIs: yield SCPIs and tax SCPIs.
The advantage of this type of real estate investment is that it allows investors to invest a small sum. But here, the risk of loss is not to be neglected and you do not know exactly in which real estate you invest.
These are two types of real estate investments you can make. There are also others. So get enough information, choose the one(s) that meet(s) your expectations and go for it.