REAL ESTATE INVESTMENT • DISTINCTION BETWEEN PERFORMANCE REAL ESTATE AND HERITAGE REAL ESTATE!Today, it is not possible to build a heritage without resorting to real estate investment. In this perspective, two two subcategories of real estate investment should be clearly distinguished, namely:
Yield real estate - corresponds to real estate investment whose objective is to create the highest possible guaranteed income;
Heritage property - corresponds to real estate investment with the capacity to guarantee the value of heritage in the medium or very long term.
Yield real estate: sustainable income and the highest possible
The main objective of this investment is to extract the maximum income from the capital invested.
It is therefore a question of investments in small surfaces type apartment buildings with small apartments intended to be rented in seasonal or professional and business real estate.
The decisive notion of this investment is the income generated, hence the importance of the purchase price! It is necessary to generate a high yield often between 7% and 10%. This involves making concessions on the location, on the "quality" of the tenant and that of the building. This type of investment is a short-term investment (7-10 years). It’s the investment of those who wish to build a heritage!
Heritage real estate: guaranteeing value in the medium or long term
In contrast to yield investment, heritage investment concerns someone who already has a significant financial surface. There is no need to seek high profitability. He favors other factors and interests. His vision is now long term. It seeks to guarantee the value of the investment made. To this end, it seeks above all a first-rate location as well as a high quality of the assets.
It is mainly about the Main Residence but also luxury goods and sometimes even what is called "Trophy Asset".
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