Real Estate

Rental Property Investment in the Loire Valley: Interesting or Not?

Among the most dynamic French areas, the Loire Valley region occupies a place of merit. Indeed, it is characterized by a very active population and profitable economic activities. Speaking of economic activities, this region is saturated with rental real estate investments. But, given its preponderance, is this type of investment profitable in the area?

Investing in Rental Property in the Loire Valley: A Fairly Beneficial Activity

Real estate investment is a very promising activity in the Loire Valley. Indeed, the region has a very lovely infrastructure that allows attracting a huge number of visitors. This condition already shows that you will certainly not lack customers by investing in real estate in the Loire Valley. Apart from this, this type of investment is also quite interesting, as you can recuperate your initial funds immediately with many profits.

In fact, in the Loire Valley, the minimum price of a real estate product is around 1700 €/square meter. You can pay up to 3500 €/square meter for newer concessions. In the Loire Valley, the rental of a 50 square meter space can cost an average of 700 €/month. For one year, you will receive a payment of approximately 8400 € for a building that you will have acquired, for example, at 85 000 € (1700 €/square meter). In this way, after 8 to 10 years, you will be able to recover your investment with profits. From this angle, it is evident that rental real estate investment in the Loire Valley is a rather exciting business.

Real Estate Rental Investment in the Loire Valley: A Low Yield Business

When you put money into rental real estate, it is expected that you will receive a significant income. But, this attractive income does not always guarantee the profitability of your investment. In reality, the purchase of a property comes with many associated expenses related to the house’s renovation. For example, you will need to put on new paint, re-roofing, and new doors. These various repairs inevitably involve significant expenses that add up to the property’s purchase price.

Under these circumstances, the time frame you will have to pay for the property can easily be extended. Thus, instead of recovering your initial funds in 10 years, you could find yourself in 15 or even 20 years. In this case, investing in rental property in the Loire Valley is not really interesting. In addition, the gentiles earn modest salaries in this region of France. Therefore, they are not always willing to rent a concession at €700 or €800. So, when your customers are mainly made up of this type of people, it would be difficult for you to make big profits. In this way, this type of investment is not really beneficial for you.

Rental Property Investment in the Loire Valley: Finding Strategies to Maximize Profits

It is true that when investing in rental real estate, you may not make the maximum profit. But, there are some strategies you can use to make this business a consistently good one. As a first idea, you should always invest in acquiring new real estate. Indeed, this condition allows you to minimize the renovation costs at the beginning and in the long run. In this way, you can make more profit. Apart from this alternative, you can also use a second strategy which consists of increasing the rental price after a renovation.

Investing in rental property is a good choice. In fact, after 7 or 10 years, you can add external accessories to embellish the house better. This option increases the market value of the dealership. In such cases, you will be able to collect a lot of monthly income and make maximum profit. In such conditions, it would be ridiculous to say that real estate investment in the Loire Valley is not attractive. In reality, these strategies minimize expenses and make more profits.

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