The rental yield is determined by the ratio between the annual rent excluding charges and the purchase price excluding charges. For example, a property purchased € 200 and rented € 000 (ie € 600 per year excluding charges) will have a rental yield of 7%. It should not be confused with the internal rate of return.
Understand and calculate the rental rate of return on a property
It will mainly depend on the location of your operation in Pinel Law. If we consider regions that are inexpensive to buy, such as Seine-Saint-Denis, but with a fairly high rent level, we can sometimes reach 4% or more rental yield, while being sure to find a tenant, this department is made up of many tenants with good creditworthiness.
When investing in the Pinel law, you must always keep in mind that you will be constrained by a rental ceiling per m², so you will have to check that the local market has a price closer to the ceilings.
Beware of promises of rents that are too high, it may indeed happen that the market is at levels below the ceiling of the Pinel law, jeopardizing the expected rental yield.
The internal rate of rental yield
This is the rate at which the financial flows of your operation are remunerated. It is determined using a Pinel law simulator and is a function of several factors:
- rental profitability (proportional to IRR)
- the loan and insurance rate (inversely proportional to the IRR)
- the duration of the credit (proportional to the IRR)
- the amount of your contribution (inversely proportional to the IRR)
- rental management fees, property tax, as well as rental charges (inversely proportional to IRR)
- the revaluation of rents (proportional to the IRR)
- revaluation of the property for resale (proportional to IRR)
If the notion of internal rate of return is essential when considering a rental investment under the Pinel law, be sure to study the various assumptions taken into account and validate their consistency.
Earn money with a rental investment
From now on, rental investment is an investment that is no longer unknown to you and all you have to do is find the solution that suits you best to become the owner of a property for rent, in order to make ends meet. and make further savings. Eventually, perhaps you will become a new owner, once you have earned enough to borrow again from your bank? In the meantime, you must begin. First take the time to see the real estate market in the municipality in which you live, if you think you can do good business. If this is the case, all you have to do is pass the course and invest your money as appropriate. But don't get lost in research right and left, concentrate: you just have to trust seasoned professionals and "investir dans l'immobilier locatif avec Imavenir " for safe placement. You will find, with these experts, real estate to buy for rent, an investment that will be lucrative and that will allow you, over the long term, to save a lot of money. This will allow you to take shelter, but also to think about the future of your children in all serenity.
Un investment in rental property it is profitable that if it is placed in a place where it is known that there are often requests for apartment rentals, you will rent it all the time, without knowing long periods when your property will be empty. For this you need to know the market quite well, in the municipality in which you live, or in another, where real estate is an interesting market, financially speaking. That being the case, it will have to be ensured that it is well maintained, that is to say that you should not hesitate to do work, in the long term, when it begins to show the first signs of dilapidation. Indeed, your future tenants should have ideal living conditions. First it will be good for them, but above all, it will give a good image of your property, and of yourself as an owner. This means you'll get good reviews on property rental websites, so you'll always find a tenant when the previous one is gone. The ideal is to have people who stay a long time, of course, but if this is not the case, you will be sure to rent again each time you leave.