When the words «real estate» or «real estate investment» are mentioned, the most common reactions are «it's too expensive», «I can't afford to buy» or «it's far too complicated». Yet investing in low-cost real estate is perfectly possible in 2022! Contrary to popular belief, it's even possible to invest in real estate when you don't have any equity. In this new article, Lica presents a range of solutions for investing in low-cost real estate!
What is a low-cost real estate investment?
Cheap real estate investment is often associated with apartments or houses in Switzerland. However, there are many other possibilities when it comes to cheap real estate investment. Whether investing in Switzerland or abroad, the opportunities are numerous. What's more, they often require no equity contribution.
An inexpensive real estate investment could range from CHF 50’000.- to CHF 250’000.-. In this price range, traditional mortgage financing is often unsuitable. Indeed, a bank will generally not wish to finance this type of property. This is because of the low profitability involved and the difficulty of estimating the price. This is why personal loan is particularly well suited to this type of acquisition. Funds will be disbursed quickly, and you won't need to justify your purchase. With a good return on your real estate purchase and good terms with your private loan, you could be on your way to a great deal!
So here's our selection of low-cost real estate in which you can invest easily and without equity, with the help of a private loan.
Cheap real estate investment abroad in Portugal
Real estate prices abroad are not the same as in Switzerland. Prices are much more attractive!
Tourist areas offer excellent opportunities for investing in low-cost real estate. At Lica we're particularly fond of real estate investments in Portugal and especially in the Algarve. The country offers a multitude of advantages:
- Tax advantages for foreign investors.
- The mild climate makes it possible to welcome tourists over a long period of the year.
- Property prices are very attractive and rising steadily.
- Real estate investments in Portugal offer good returns.
- The economic recovery and the improvement in the country's situation following the health crisis are having an impact on real estate prices set to continue rising regularly.
- And owning a property in Portugal gives you a foothold for your own vacations or retirement.
Buying property in Portugal today is therefore the best time to invest in cheap real estate!
Parking spaces in Switzerland
One of the most sought-after properties in the city is a parking space or garage. Indeed, obtaining a parking space or garage offers very good real estate returns, as these are increasingly sought-after properties. This type of property is perfectly suited as a low-cost real estate investment that can be easily financed with the help of a personal loan.
What's more, a parking space or garage is an investment that will only require a very small investment. low maintenance. For a parking space, you'll need to plan for the floor to be repainted every 10-15 years. As garages are often integrated into condominiums, the renovation fund will often be sufficient to maintain your garage.
Land in the process of being decommissioned
In the same style as parking lots and garages, you can find out more about investing in land. As the need for housing increases, so do prices. As a result, prices will continue to rise over the coming years. Investing in land is therefore a guarantee of future real estate returns. Before you invest in a plot of land, ask yourself what you want to buy it for, and find out whether it will be downgraded in the future. Will it become constructible or remain in an agricultural zone? Is there any development potential in the area?
Some people target the acquisition of land as a cheap real estate purchase. This is because of the possibility of making money on the future subdivision of the plot. It is indeed possible to make money by buying a plot of land whose parcels will be divided up with a view to selling them individually to build houses, for example.
Small businesses
Goodwill are an excellent example of low-cost real estate investment. Whether in large or small towns, some small businesses remain essential. They will continue to exist despite the growing importance of internet commerce. Property yields for commercial property are generally higher than for residential property (5% to 7% vs. 3% to 5%). Prices in Switzerland vary greatly depending on the region and the type of business you're looking for.
If you decide to opt for this type of low-cost real estate purchase, you'll need to pay particular attention to the bookkeeping of the business you wish to buy. Here are a few points to check before you embark on a purchase:
- Are the company's accounts up to date?
- Are there any delays or outstanding receivables?
- How will the retail sector evolve over the coming years (location, competition, etc.)?
- How much time will I have to invest in running the business?
The acquisition of a business can therefore prove highly profitable. It does, however, require a little more knowledge than buying real estate. If you don't have the requisite skills, seek professional advice!
Low-cost investment in studios or small apartments
If you're looking to invest in residential property, studios and small apartments are the perfect solution for you. These are the most sought-after properties to rent. Although the price per m2 is higher than for larger apartments, the price per m2 rental rates are also much higher for this type of property. So, buying a studio or small apartment will be an inexpensive real estate purchase that will offer you good real estate returns in the medium and long term. In Switzerland, it's perfectly possible to buy a small apartment with a private financing.
Real estate investment by crowdfunding (or participative investment) is also an interesting solution. However, in this case, you don't own the property, as you only own a small part of it. In short, this solution is often less profitable, but at least you don't directly inherit the problems associated with buying and managing real estate.
You don't have the funds to make a low-cost property purchase?
The question of equity capital is central to all the solutions developed in this article! However, it's not enough, Lica is there to find a solution for you and give you the opportunity to invest even if you don't have the funds. In fact, the advantage of a low-cost investment is that shareholders' equity are far less problematic. It is therefore entirely possible to put together a financial package with which you can obtain financing for your entire real estate investment. This means you don't have to raise any funds of your own, and you can benefit immediately from your real estate returns.
The financing solutions offered by Lica combine different strategies. They enable everyone to meet their credit needs. Our strength lies in our experience in combining these different solutions to get you the financing you need. Lica is an expert in the following areas:
- Personal loans
- Business credit
- Income protection insurance
- The increase in solvency
- Debt reduction
Our experts are always available to advise you individually and without obligation.
Our job is to provide you with solutions!
So if you'd like to obtain financing quickly and make your dream come true, you can make your no-obligation application by taking advantage of Lica's services.
Start with a low-cost real estate investment and grow fast!
This kind of «low-cost» investment is ideal as a first investment to gain recognition from financial institutions. This is because.., obtaining your first loan is often complicated and restrictive. The banks don't know you yet. However, if all goes well with this first loan, banks will be more open to granting you other loans on better terms for future investments. Take advantage of’a company specializing in credit guarantees you the highest acceptance rate in Switzerland for your first investment projects.
Once your first property has been purchased, you can then take advantage of real estate yields to capitalize on funds and repeat the operation more easily in future years.
Our conclusion on buying cheap real estate
Real estate markets in Switzerland and abroad offer a wide variety of low-cost opportunities. These opportunities are perfect in anticipation of larger investments in the future, and are an excellent way of capitalizing on your equity and obtaining advantageous conditions for real estate investment as a primary or secondary residence.
The sooner you start making your first acquisitions, the easier it will be to generate a return that will give you significant leverage for your next acquisitions. To make a living from your real estate returns, it's important to multiply your acquisitions while spreading your risks. Buying your first property at low cost is therefore the first step to building a substantial real estate portfolio!
Whatever your investment project, we recommend that you use our services for your financing. Our specialized teams are there to help you every step of the way, listening carefully to your project. By combining our different areas of expertise, we can obtain the financing you need at the best market conditions.