Too often, we look at ourselves and impose on ourselves rules that are stricter than they actually are. Let's do a non-exhaustive review of non-conventional investments in real estate.
This is the investment that is generally called the "paper stone". Société Civil de Placement Immobilier is a structure that raises funds among investors in order to acquire the property that it will then manage. Investors own shares of the REIT and are remunerated with the rents of the possessed property. On the other hand, the value of the shares can also change according to the real estate market. The investor also has the opportunity to realize a capital gain by selling his shares.
There are SCPIs of all kinds, which allows to diversify its real estate assets:
- Commercial walls
- Walls of industry
The advantage of SCPI is that it is very easy to invest via internet on a title account. Returns, in general, are quite interesting (5 to 8%). In addition, SCPIs allow access to the real estate markets from closed companies to non-professional investors. On the other hand, you can not negotiate the purchase price and the transaction and management fees are often quite high (about 10%).
2. Commercial premises
Commercial premises are quite common in the city centers on the ground floor of the buildings. This is a pretty dynamic market. It is about as simple (or complicated) to buy this type of property as a conventional apartment.
The advantage of commercial walls is that the development work is the responsibility of the tenant. In other words, if the property does not look good, but is well placed for trade, it does not matter.
3. Shares of real estate companies sides
This is a stock market investment, but oriented real estate. Indeed, there are a number of companies whose real estate is the core business: management, construction ... For example, companies like Bouygues, Unibail-Rodamco or Nexitiy are listed companies that are more or less related to real estate. The advantages and disadvantages are those of stock market investments in general.
4. Tourist rentals
The investor buys a property in a tourist area: sea, assembly, tourist town ... Rather than choose to put the property in classic rental. It is to rent on short periods (day, week). Filling rates are certainly lower (a few months per year), but yields are often very high.
Naturally, the more popular or upscale the location, the more likely the investment is to be juicy. MGM French properties offers property for sale in the French Alps to expand its real estate portfolio in about fifteen ski resorts such as: Chamonix, Chatel, les Saisies, Tignes or Val Morel. With exceptional properties located in such places, profitability in the medium or long term is interesting.
It means: Establishment of Accommodation for Elderly Dependents. At the time of the aging of the French population, the EHPAD are a means of real estate investment booming. These establishments require a lot of expenses: staff, medical needs ... But the revenues are quite important and it is possible to find interesting profitability.
We have seen here only the surface of the different real estate investments. There is as much opportunity as an investor. These less known investments (or niches) also deserve special attention because they can help to diversify AND obtain very good returns.