Investment in real estate from 10 euros is possible!

investment in real estate

For the wealthiest, as well as the less fortunate, real estate is a good way to diversify your holdings and sometimes earn a substantial return!

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Properties again and again! According to Knight Frank’s The Wealth Report 2024, the richest Europeans spend almost a third of their wealth (31%) on their primary and secondary residences. “They have a collection of them in the most beautiful places in the world», confides Thibault de Saint Vincent, president of Barnes. No less than 3.7 residences on average. When it comes to their investment properties, they are favored by the wealthiest club offersoperation”in which around twenty investors come together to buy a building, convert it and then sell it, with a performance of around 15 to 20% per year», explains David Regin, Business Director of Consultim Partners.

In the same vein, private banks also offer real estate private equity funds. “For example, one of us bought a telephone exchange in the heart of Madrid, which was turned into a luxury residence with very high-end services, or a printing house in Stockholm, which became a data center for Google.», clarifies Jean-Baptiste Douin, CEO of Pictet Wealth Management France. Operations with very high added value that less fortunate individuals do not have access to. There are other solutions for them.

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SCPI

Real estate investment companies (SCPI) buy and manage tertiary real estate (offices, hotels, shops, etc.). Individuals can buy shares in these companies (from 1000 euros) with a regular return of around 4.5%. With the real estate crisis associated with rising rates, they have not been celebrating for several months. However, some do better than others and if well selected (such as Iroko, Remake or Corum) can yield more, up to 7%, without any rental management concerns. The only limitation: you have to hold your shares for a long time to absorb the significant entry fees (more than 10%), and you have to wait for other savers to acquire your shares before you can sell them again. Illiquid investment.

Also read: SCPI: this alternative to buying on credit offers you a return of almost 6%

Crowdfunding

Here you lend money through a crowdfunding platform (ClubFunding, Homunity, etc.) to a real estate developer or dealer. You earn regular interest and if all goes well, you get your deposit back at the end. With an average annual return of 10.3% in 2023, with an average duration of two years – no option to terminate before maturity. Available from €1,000, but “it is advisable to diversify as much as possible by investing in several projects», According to Mathilde Iclanzan, CEO of WiSeed. Because with the problems that real estate players are currently facing, it is risky: in the event of difficulties or bankruptcy of the operator, you can lose all or part of your share. Before you start, check the frequency of delays or glitches on Hello Crowdfunding.

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Also read: Real estate crowdfunding: 10% returns in 2023, but an increasingly risky investment

Partial real estate

It’s a formula reminiscent of the club offers (read above) of the wealthiest, but available from… 10 euros! The investment is made through a platform (Tantiem, Fragments, etc.). Idea? A few savers buy a house together (not a building like the wealthiest!), benefit from the rental income and a possible capital gain on resale eight or ten years later, with a return of between 5 and 8%. Risks: non-payment of rent by the tenant or loss of resale value. Don’t invest blindly: you need to have access to as much information as possible about the property (location, price per square meter, amenities, etc.). “Also check that the platform operation is well regulated withAMF (Financial Markets Authority) that it has expertise in real estate and that it has already financed several projectsMathilde Iclanzan concludes.

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Also read: Real estate loans: is the market really recovering?

>> Our service – Real estate price estimate (immediate, free and non-binding)

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