Investing in flats

From investing in real estate has been known to be a good idea for some time. Rising property prices are a clear indication that real estate is becoming more valuable as the years go by. One investment option you have then is to invest in flats. Flats are an interesting form of real estate in many ways.

Why invest in flats?

To help you make the right investment, it is important that we inform you about the reasons for investing in flats. This is because when you are fully aware of the underlying reasons, you will be able to make the right decision for yourself. Investing in flats is done because of the following points:

• High return prognosis: First of all, you only make an investment when you are convinced that it will will yield something. Now, investing in flats is the right thing to do. Flats have an average return prognosis of 5 to 7%. This means that on the purchase of a €250,000 flat you will receive an annual rental income of between €12,500 and €17,500. This is a return that is reasonably on the high side. Add to that the expected increase in the value of a flat and it soon becomes clear that it is a good investment. A high return is the basis for a smart choice.

   

• Low risk forecast: In addition, when making an investment, it is often important to keep the risk as low as possible. Of course, the preferences differ from one individual to another. But in general, a high return with a low risk is a fine choice. Flats are always in high demand. You may therefore assume that a good flat will still be in demand a few decades from now. This is often more difficult to determine in the case of, for example, office buildings and retail properties. With such investments, there is a greater risk that at some point there will no longer be a demand for them.

   

• Available for different budgets: Furthermore, flats come in all shapes and sizes. This makes it very easy to find a flat that fits your personal budget. Also if beginner. For example, don't want to dig too deep with your investment? Then choose a smaller flat, not situated in the middle of a big city. You will often end up with a purchase price of around €200,000. The bigger the budget, the bigger the flat will probably be. Especially when other attributes stand out positively. Think of a south-facing balcony, several bedrooms, etc. In popular cities, the average purchase price then quickly rises to around €350,000.

   

• Often good location: Finally, the nice thing about investing in flats is that you often have a choice of good locations. In terms of flats, for example, there is a lot of new construction. This means that careful thought has been given to how future-proof it is. In addition, many flats are often located in or very close to a centre. These locations are generally in high demand. This all comes back to the aforementioned low risk forecast. Generally speaking, investing in a flat gives you peace of mind.

What to look out for when investing in flats?

When you are strongly considering investing in a flat, it is important to keep a few points in mind. You don't want to make a blind investment. There is always a chance that you will make an unnecessary mistake. Would you like to get it right the first time? Then be sure to take the following into account:

• Purpose of property investment: First of all, decide for yourself what exactly the goal of your real estate investment is going to be. For example, do you want to realise a short-term increase in value and sell the flat immediately? Or are you thinking about a long-term investment? One where you're going to collect a lot of rental income and where you're hoping for a substantial increase in value over time. Both scenarios require a slightly different approach. For example, certainly in the second case it is important that the flat is future-proof. That it is in a sought-after location, where the chances of major changes are minimal.

   

• Budget: Then it is also important to determine your budget. What exactly do you have to spend? By clearly determining your budget in advance, you will not be tempted to take unnecessary risks. Even if your budget is somewhat on the low side, this is not yet a problem. Perhaps it would be better to focus on investments that are generally a bit cheaper, such as car parks, student rooms or Immotokens. There is something for every budget. A real estate investment is nowadays available for everyone.

• Future-proofing: Next, we will take a closer look at the term 'future-proofing'. It is probably clear by now that this is of great importance. Since your goal is to increase the value of the investment over time, it must be future-proof. A flat in or near a large city is a good example of this. Especially when it is a new build that meets all the important guidelines.

   

• Right provider: Finally, it is important to find the right provider. Not everyone offers flats of the same quality. Moreover, it is always good to have as many choices as possible. It maximises the chance of a good investment. Good flat providers are Zimmo, ERA and Luxury Property.

Specific tips for investing in flats

Specific knowledge comes in handy when investing in flats. You will benefit from this in the current market. Therefore, apply the following information:

• In the big cities you have more tenants, but often also a higher turnover.
• Buy sharp to charge higher rents to new tenants.
• Ghent, Leuven are the most expensive cities with relatively lower returns (due to high purchase prices).
• Antwerp and Brussels have higher yields thanks to a better balance between buying and renting.
• In the slightly smaller towns, such as Kortrijk, Waregem, Ostend, Mechelen, Genk, Deinze, Oudenaarde, there are regular opportunities.
• The most suitable type of flats for rental are 1 or 2 bedrooms.
• It is best to choose materials or finishes that are suitable for rental. Expensive kitchen worktops, for example, are a bad investment because they cost a lot, provide little additional rental income and are difficult to maintain.
• In flats, terraces are a crucial part. They ensure significantly higher rental prices and general rentability.

Invest in flats with Immotokens

Did you know that today it is already possible to invest in flats from €50? This has everything to do with the introduction of the Immotokens. Through blockchain technology physical flats can be divided into smaller digital pieces. Fully verifiable and secure, this gives you the opportunity to invest in part of a flat. In this way you are officially the owner of the property, you benefit from an increase in value and you receive monthly rental income. It is the modern way of investing in real estate. Do not wait any longer than necessary and discover today What is possible for you personally in the field of Immotokens!