- How to invest in a garage?
- Invest in a garage: many benefits
- The disadvantages of investing in a garage
You want to invest in a property but you dare not take the step? You do not want to leave your savings on a low-paying booklet? Why not invest in a garage? The steps, advantages and disadvantages: here is everything you need to know to invest in a garage.
How to invest in a garage?
We must take precautions if we wish buy a garage in order to make money. So to invest well in a garage, you have to be careful his location, criterion that will attract the tenant. There must be a real demand around this garage to be sure to make a good deal. In any case, you must avoid embarking on the first opportunity that comes. We must also ask the right questions, especially regarding the purchase price of the garage and the amount to rent.
Invest in a garage: many benefits
The first benefit is the amount of the contribution sinceit is not necessary to have a big savings to invest in a garage. This is the ideal purchase to make when you want start investing in rental real estate. If in Paris the price of a garage can go up to 40.000 €, in the provinces it rarely exceeds 25.000 €. Because of this relatively small amount, it is possible to finance his cash garage. If this is not possible, it is easy to obtain a loan from his bank since the necessary contribution is only 2000 à 5000 € about.
Investing in a garage is also profitable and low risk insofar as it is a market that does not know the crisis, and even more so in the big cities. The fixing of the rent is not regulated by law, although it is wiser to respect market prices. As for its profitability, if it is not what it was a few years ago, it is still located between 6 and 8% net.
Investing in a garage is particularly favorable for the owner since it can change tenants easily if he does not pay the rent. Similarly, it is a good easy to sell because of its price.
Investing in a garage is also advantageous for the owner who does not need to maintain it regularly, unless the door of it is damaged.
The disadvantages of investing in a garage
Like all real estate income, you have to declare the rent from the rental of a garage. They are therefore taxable. However, if they are less than € 15,000 a year, it is possible to take advantage of the "micro-land" regime.
Similarly, you should expect to pay significant notary fees when investing in a garage. Notary fees can go up to 20% of the purchase price of the garage.