Do you want to invest in luxury real estate in Saint Remy de Provence and you don’t know how to go about it? Don’t worry, today we explain everything you need to know to make your real estate investment a success.
Choose your type of investment
When investing there are two cases: investing in the purchase of luxury real estate for personal purposes, or investing in search of future income
For the first case, you can seek advice from a professional or even contact the owners directly to get an offer on luxury real estate, however contact a real estate agency with advisors specialized in luxury remains a better option because the agencies can give quality advice and can direct you towards what you are looking for: the agencies are able to make precise offers appropriate to your specific requests.
For the second scenario, there are different methods for investing in luxury real estate. It all depends on the amount you want to invest and the terms on which you are prepared to compromise:
- If you plan to invest in the purchase and resale of a luxury home, you can opt for a short-term furnished or unfurnished rental followed by a sale after renovation.
- If your main motivation is to make a financial investment, you have the possibility of investing in rental real estate, this can be through SCPI (common funds), SICAV and FIP. On the other hand, not all formulas are adaptable to every type of profile. In fact, certain offers are reserved for professional investors whereas this is not the case for student land which concerns students and given the low amount to invest, it only interests few professionals.
- If you have a huge budget and you plan to build a luxury house or residence on land in St Remy de Provence, you must contact a professional builder who will provide you with all the information necessary to properly invest in luxury real estate.
You should know that although there are different types of real estate investments, it is possible to combine several formulas and thus have optimal risk management.
To invest well you have to be comfortable with numbers
Luxury real estate is a market that is on the rise and growing strongly, it is not for nothing that there are more and more investors.
When we talk about the real estate sector we often think about the price of the property but above all the income that we can earn once the work is done (renovation).
To invest well you need to be comfortable with numbers, and above all manage risk. The real estate market is very unstable in France as in many European countries. A bad choice can cost you dearly! The properties to be restored are often houses or apartments which cannot be rented in the meantime due to lack of work to add value to your property.
But that’s not all: you also have to manage the budget for the work. If you decide to have the work done by a professional, you will have to plan for what we call the “gross cost”.
This price includes the labor and raw materials used to carry out this work but also, where applicable: part of the salary of the professional who takes care of the renovations, his professional liability insurance, etc.
Studies of the opportunity cost and rate of return on your investment are very important.
We must therefore take into account several parameters to properly invest in luxury real estate: the price, the work to be planned and risk management! If you wish to invest in this type of property, it is advisable to call on professionals who will manage your real estate project. They can carry out a detailed study on your property so that you can evaluate your investment.
Real estate is always profitable: luxury real estate can generate immense returns on investment
Property prices in St Remy de Provence are high, and demand is strong.
The prices achieved by real estate in the luxury sector attract many investors. The returns on investment generated can be very significant for those who know how to make judicious investments in luxury real estate!
Renting allows you to borrow while remaining an owner: you should not hesitate to use a real estate loan when it inspires confidence (historically low rates)
The resale of real estate must be done in due time: you must always have an exit plan if you do not want to find yourself stuck with real estate
Real estate speculation is never recommended, but residential property can be profitable investments.
A luxury building or villa will be resold at a price equivalent to a return of around 15% which is enormous!