The uncertainty of the health crisis is creating a form of return to safe haven among individuals.
Despite record savings estimated at 200 billion euros in 2020 and 2021, households favor risk-free savings accounts.
And are reluctant to embark on more profitable future investments, such as rental investment.
Even if the vast majority think about it.
According to a Poll & Roll study for Masteos, a start-up specializing in supporting rental investors, 56% of French people say they have already thought about or made the purchase of an apartment to rent it out.
But, at the same time, the coronavirus slows down cravings.
63% of households believe that the period “is not conducive” to this type of project.
"It is clear that the lack of prospects discourages some to pass the course, supports Thierry Vignal, president of Masteos.
In addition, there are other blockages.
Only 15% of people who are considering investing actually do.
"
Second preferred investment for savers
The main obstacle, according to 79% of French people, is the complexity of the procedures.
Between the bank loan, the notarial deed of sale, the consequences on its income tax return and the choice of apartment and its location, rental investment can scare away savers who feel they do not have sufficient technical knowledge.
"The best is then to be accompanied by a broker or a structure", emphasizes Thierry Vignal, who accompanies the investor from A to Z, from the "sourcing" of the property, to carrying out the work and then letting the property. 'apartment.
It is also possible to rely on a notary, authorized to advise clients in real estate matters.
In second and third places, the French are put off by the fear of not being able to invest without a contribution (72%) and that of suffering unpaid rents (79%).
But despite these reservations, rental investment comes in second place, behind the purchase of a main residence, like the preferred placement of savers.
For different reasons depending on the age.
Those over 50 are more looking for immediate profitability to secure additional income upon retirement, while the youngest (18-34 years) aim to build up assets, with a long-term vision.
This is the case of Louis, an executive in a large insurance company, who already has three apartments for rent in the provinces, after having acquired his main residence in the Paris region.
"Rather than leaving my savings in a booklet without profitability, I prefer to use my borrowing capacity and ensure my future", supports the young man of 29 years who bought alone two studios in Lille (North) and Vendôme (Loir- et-Cher), for 80,000 and 70,000 euros, and a two-room apartment in Orléans (Loiret) at 160,000 euros for which it went through a specialized company.
READ ALSO>
Investing in real estate: is turnkey a good solution?
"I develop my capital, while investing in geographic areas and apartment types where the risk is low," he says.
Each time, with financing from his bank at “110%”, ie the entire purchase price and the notary fees “and the rents which cover the monthly payments”.
The young investor opted for rental management with insurance against unpaid rents.
"I am not earning anything for the moment, but in fifteen or twenty years, it will be a lasting income and a real additional income", boasts Louis who thinks that "people should demystify the rental.
"
Newsletter It pays me
The newsletter that improves your purchasing power
Subscribe to the newsletterAll newsletters
With an average gross yield of 5.93% in France, according to data from Masteos, this type of investment is more profitable than “risk-free” investments in savings accounts.
87% of French people even consider real estate as a "concrete, safe and profitable" investment, according to the study.
"We have to do education and support individuals," says Thierry Vignal.
The rental, if it is well done, is an excellent opportunity.
"
Three tips to get you started
Do you want to grow your savings, rather than sleeping on a savings account with no return, by making a rental investment?
If you want to get started on your own, here are some tips to avoid getting your feet wet.
Define the objective of your investment and your budget.
Depending on the profile, the reasons and motivations that lead to making a rental investment vary according to each person.
This can be a way of building up wealth, diversifying long-term investments or having immediate additional income.
“Whatever the objective, it has to be well defined in advance.
It will define your budget and the type of property you are going to buy, ”says Thierry Vignal.
Large metropolis or intermediate city.
Investing in a large metropolis is more of a safe investment, but where the profitability will, in fact, be rather low, the prices being extremely high.
Intermediate cities undergoing rapid change such as Orléans (Loiret), Le Havre (Seine-Maritime), Roubaix (North) or even Chalon-sur-Saône (Saône-et-Loire) can constitute profitable opportunities in the short and long terms.
The gross rate of return can be as high as 8, 9 or 10%, far ahead of the national average of 5.93%.
Studio, shared apartment or building.
The studio is the most profitable asset. The mechanism is simple: the smaller the surface, the higher the yield per square meter. You can also "cut" a three or four-room apartment by sharing a flat, to optimize the space. Or even buy a building! In mono-ownership, you will not have to undergo a trustee, and you will be able to recover several rents at the same time. “In an average city, you can have it for 150,000 or 200,000 euros, and have four apartments of 35 m2, underlines Thierry Vignal. The costs can be high but profitability is there! "
