8 tips for investing in real estate

In L’Echo, journalists asked eight questions to real estate experts. We have derived eight tips from this, which we will provide below.

The apartment clearly remains the sure value that will experience the strongest growth in terms of yield.

Admittedly, the increase in the rent of your real estate is subject to conditions. However, you will certainly apply all the rules that allow you to increase them.

The real estate market is a market closely linked to economic circumstances. The experts interviewed by Echo therefore expect an investment horizon of five years, with more distant forecasts seeming a little uncertain.

1. An apartment you will buy….

The apartment clearly remains the sure value that will experience the strongest growth in terms of yield. The classic house and the second residence on the Côte complete the podium. Be careful, the days when houses earned 8% a year in value are over.

2. An average yield you will accept….

As we have said, no more yields close to 10%. It is preferable to expect an average return of 2.7%. A good way to increase the return on a property is to also invest in its renovation so that you can earn a higher gross annual income.

3. A diversification you will operate….

If you want to invest significantly in real estate, never forget that there are apartments, but also other types of property such as kots, nursing homes or assisted living. This will allow you to face market changes in the future.

4. An increase in rents you will practice….

Admittedly, the increase in the rent of your real estate is subject to conditions. However, you will certainly apply all the rules that allow you to increase them. This is the most effective way to increase your gross annual income. In any case, the increase in rents should follow the increase in selling prices.

5. A resale you will postpone….

The rental market is in high demand and is expected to continue to do so. Young people who succeed today no longer wish to settle in the same place in the long term and prefer to rent their homes. The rental market will therefore have more respondents, especially if your property is correctly located.

6. An adaptation to the offer you will adopt….

Depending on the type of property you wish to sell, buy or rent, you will be in a balanced or even oversupply situation. Logically enough, if in Brussels, for example, average and superior housing is oversupplied, you should take advantage of stagnant prices to invest, but in any case not to resell.

7. A tax risk you will prevent….

Admittedly, renting a property means dealing with defaulters, possible damage or temporary vacancy. But the experts are formal: the main risk for investors is that taxation will change. Some believe that, within five years, taxes could be levied on rental income and more on cadastral income. A significant difference in the calculation of yield.

8. A profitable city you will choose….

Antwerp, Brussels, Ghent, Mechelen and Ostend… These are the five cities in order where it would be better to invest in real estate for the next five years. Returns linked to rental income could be around 4.5%.

You are now advised to invest in real estate. All that remains is to find the property that meets your expectations….