Known as a tourist region, Normandy is a territory in the north of France filled with an array of splendors. It attracts many tourists and is an excellent area for rental investment. But, like other French departments, Normandy is governed by specific tax rules that disadvantage the real estate sector. In this case, how to invest in this field of activity? This article offers some practical strategies.
Select a Suitable Geographical Area
Finding a suitable geographical area is the first tip to use to make a successful investment in Normandy. Indeed, although the site is profitable for rental real estate, you should know that not all regions of Normandy favor the development of this field of activity. Therefore, there are some strategic areas where you will have to acquire your real estate to make good profits. For example, you can opt for the cities of Normandy, such as Havre, Rouen, Caen, Evreux, etc.
These different cities are suitable for rental real estate, as they have a high flow of tourists every year. Moreover, they have an excellent infrastructure and a wide range of properties in good condition. Thus, by investing in these cities, you benefit from the high rental demand, and you have the chance to have good profits. Based on these elements, try to acquire your real estate in these areas to avoid any inconvenience.
Putting Your Capital Into New Real Estate
To better enjoy the benefits of real estate in Normandy, it is also essential to invest your capital in purchasing new properties (houses, apartments, etc.). This tip is quite relevant, as it allows you to reduce certain expenses as much as possible. Indeed, the territory of Normandy is an area that is subject to the Pinel law. So, when you buy a new property in this French region, you will have the chance to reduce your taxes thanks to this law.
Moreover, by choosing to pay for newly built homes, you will be exempted from the fees related to the house’s renovation. Usually, such costs are pretty staggering. So, with new real estate, you can put these renovation fees into savings and use them for other occasions. Apart from that, you should know that new properties take time to pay for themselves. It takes 6 years or more for a new property to pay off. This ultimatum gives you enough time to amass large profits and make your investment in Normandy profitable.
Diversify Your Investment in Rental Property
To make more profit in rental real estate in Normandy, you also can diversify your investment. Speaking of diversifying your investment, you should know that this means sharing your capital to acquire new and old properties. As a percentage of distribution, you can adopt a rate of 60% (new property) and 40% (old property). This tip is important because, with new real estate, you already benefit from many advantages in the Normandy area (for example, the Pinel law).
Apart from that, buying old properties also gives you certain privileges. For example, these types of properties often have a very low value. So, you can decide to buy some of them and renovate them to increase their market value. But, if the renovations are high, you will have to pay a low