Real estate: is it a good time to invest?
Are you worried about the economic context?
“Current rates are returning to historical classical levels.”
So yes, the real estate market, especially in Île-de-France, is currently experiencing a period of transition marked by the return to rising interest rates and the difficulty of obtaining loans. However, it should be noted that current rates are returning to historical classical levels. Moreover, the real estate sector in the French capital remains a robust and dynamic market. Rising interest rates, while higher, have not completely dampened demand for real estate. And especially on the market in which Kyka operates... We explain everything to you!
High interest rates: forget that excuse!
Small 1: when you invest in a property to be renovated, you create value. By investing in renovation and improving the quality of a property, you are thus increasing its market value. Thus, the benefits associated with the increase in the value of the property will offset the higher interest costs incurred during the duration of the project.
Small 2: as we told you, Paris and its periphery remain a dynamic market with sustained demand. Basically, there will always be buyers, especially for refurbished and ready-to-use goods. And as it is a rare commodity on the real estate market, they will be ready to pay the price, which again compensates for the higher interest rates at the origin of the project.
Small 3: when the objective is to build up your real estate assets, you buy, renovate and sell in the space of 2 or 3 years. And so this higher rate does not represent and is largely offset by the added value created.
Opportunities to seize
“Regardless of the market context, these properties are often cheaper or tradable.”
The disadvantage of properties to be renovated is that they have to be renovated... CQFD. The advantage when you go through Kyka is that we manage the project from A to Z and we know how to focus on properties with high potential. And regardless of the market context, these properties are often cheaper or negotiable.
These apartments to be renovated offer the potential to significantly improve their energy performance. When you undertake the complete renovation of a property, you of course go through the energy renovation phase, by insulating the walls, by changing the windows if necessary, by installing a more efficient and less energy-consuming heating system... Your future home becomes more energy efficient and therefore helps you reduce your energy bill each month. As more and more people are sensitive to eco-responsible solutions, the additional value created will be very important when reselling.
Now is the time to start
By starting early, you start building your real estate assets. So certainly, you may start with a 30m² but you might as well do it when you are young and without children! Because by reselling and buying over the course of your life, you will be able to afford to acquire ever larger properties, which correspond to your needs and your evolution.
You benefit from the leverage effect of real estate credit. Indeed, loans allow you to buy a property using bank money (nice, no!). You also invest part of your own capital and when you sell with the generous added value generated by the renovation, your earnings will be based on the total value of the property, not only on your initial investment. You will then be able to buy bigger since your intake will thus be inflated.
Learn, you go! The sooner you get started with buying and selling real estate, the more opportunities you will have to gain experience and become familiar with the various aspects of the real estate market. A valuable experience for your future projects and to help you make informed decisions (and if you still need us, you know where to find us!).
Have we convinced you? So don't wait any longer and make an appointment with one of our Maison Kyka experts.