What is the best way to invest in luxury real estate?

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 succeed in your real estate investment.

Choose your type of investment

When investing there are two cases: investing in the purchase of luxury real estate for personal use, or investing in search of future income

For the first case, one can be advised by a professional or even contact the owners directly to get an offer on luxury real estate, however, contacting a real estate agency with consultants specialized in luxury goods remains a better option because agencies can give quality advice and will be able to direct you to what you are looking for: agencies are able to make precise offers adequate with your specific requests.

For the second case, there are different methods to invest in luxury real estate. It all depends on how much you want to invest and on what terms you are willing to compromise:

  • If you intend to invest in the purchase and resale of a luxury home, you can opt for a furnished or unfurnished rental on a short term basis followed by a sale after renovation
  • If your main motivation is to make a financial investment, you have the possibility to invest in rental real estate, it can be through SCPI (mutual funds), SICAV and FIP. On the other hand, not all formulas are adaptable to all types of profiles. Indeed, some offers are reserved for professional investors, whereas this is not the case for student real estate, which concerns students, and given the small amount to be invested, it only interests a few professionals.
  • If you have a huge budget and are planning to build a luxury home or residence on land in St Remy de Provence, you should contact a professional builder who will provide you with all the information you need to invest in luxury real estate

It is important to know that if there are different types of investments in real estate, it is possible to combine several formulas and thus have an optimal management of the risks.

To invest well you need to be comfortable with numbers

Luxury real estate is a market that is on the rise and in strong growth, 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 especially about the income that can be obtained 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 that are not rented in the meantime due to a 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 is called the "gross cost".

This price includes the labor and raw materials used to carry out the work, but also, if necessary, part of the salary of the professional who is doing the renovations, his professional liability insurance, etc.

Studies of the opportunity cost and rate of return of your investment are very important.

It is therefore necessary to take into account several parameters to invest in luxury real estate: the price, the work to be done and the risk management! If you wish to invest in this type of property it is advisable to call upon professionals who will manage your real estate project. They can carry out a detailed study of your property so that you can evaluate your investment.

Real estate is always profitable: luxury real estate can generate huge returns on investment

Real estate prices in St Remy de Provence are high, and demand is strong.

The prices reached 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 wise investments in luxury real estate!

Renting allows you to borrow while remaining an owner: don't hesitate to use a real estate loan when it inspires confidence (historically low rates)

The resale of a property must be done in due time: you must always have an exit plan if you don't want to get stuck with a property

Real estate speculation is never advisable, but residential properties can be profitable investments.

A building or a luxury villa will be resold at a price equivalent to a return of approximately 15% which is enormous!

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