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Investing in real estate? Keep these 3 tips in mind

Investing in real estate

Building up a financial reserve, it is something we all want. But how can you best secure an extra income alongside your pension? These days, a savings account yields almost nothing. What ís a good idea, however, is investing in real estate. But if you do, it is best to take these tips into account.

Borrowing for an investment is always a good idea

If you have the necessary funds to invest in real estate, it is still a good idea to borrow when purchasing finance property. There are a few reasons for this. For example, anyone who buys an investment property with a loan is entitled to interest deduction and thus falls under the system of long-term savings. In other words, you can deduct the interest you pay to the tax authorities from your net taxable income. In addition, any premiums paid for your outstanding balance insurance will also be tax advantageous. But be careful! Your loan must run for at least 10 years.

Take the return into account

Investors or future investors often have high expectations when it comes to the return. For example, one in four Belgians thinks that real estate offers a 5% return. One in six is convinced that it even yields 8% or more. But unfortunately, reality is different. Various factors play a role in this calculation, which ultimately makes it a difficult task.

The return on a real estate investment consists of the rent and the added value on resale. Usually, the rental return is around 3 to 4% without taxes, maintenance and the cost price of a loan.

Brand new real estate 

When investing in new buildings, you should also keep in mind that you are not buying for yourself, but you are making an investment. In other words, you have to imagine yourself in the lives of buyers and tenants. After all, you want to make a profit later on or rent out the property without any inconvenience. What do you have to take into account? Looking at revenue properties with the highest possible profit margin. In other words, not only is the location important, but also the potential added value when reselling. Residential property, for example, is a long-term certainty. Those who invest in retail space or office buildings have more risk of uncertainty.

Finally, it is also important to resell your investment on time. When? Before major costs are incurred. With a new-build investment, you are safe from major energy and maintenance repairs for a while. How long should you wait before reselling your investment? About 10 to 15 years.

More advice on how to make the right real estate investment? Immowi is happy to help!

Immowi Assistance

There is often an invisible wall between marketing and sales. Companies invest in marketing campaigns to generate leads, but do not take the right actions to turn those leads into customers. To remedy this shortcoming, the strategic online lead generator Immowi is adding a new extension: Immowi Assistance. Until now, we delivered high quality leads thanks to online marketing, but with Immowi Assistance we significantly increase the chance of these leads actually becoming customers. Thanks to this approach, companies that do business with us know how to convert their leads and have a platform where the leads are offered on a silver platter, ready to be converted into valuable customers.
Extremely result-oriented
We could make it easy on ourselves and be happy with just bringing in high-quality leads. But it’s frustrating when your hard work doesn’t follow through. Immowi’s great strength has always been that we are very results-oriented. Many marketers have a reputation for selling hot air, because they can’t substantiate their returns. We did that right from the start, and that’s why we were able to grow from one to more than 10 full-time employees in a very short period of time.
With MyImmowi we just go one step further than what classic lead generators do. We go to the point where a lead becomes a valuable prospect. We help our customers convert their leads into customers.
Entrepreneurial mindset always in mind
MyImmowi builds the bridge between marketing and sales. We Make it as easy as possible for the client to contact the lead. You have to keep them warm. If you let a few days or even weeks pass between the moment a lead shows interest in your product and the moment you contact that lead, you will lose him. Then your success ratio will remain low. So, we try to immediately set an appointment in the diaries of our clients’ salespeople. You have to strike while the iron is hot.
Letting sales people do what they do best
Sales people like to sell, but they thoroughly hate administration. They keep track of their leads, their appointments and their deals in Excel, or even with pen and paper. They only keep track of their own prospects. Many companies do not have a sales pipeline. So, you risk sending a quotation to a customer after a successful meeting, but ultimately missing the customer because you forgot to follow up on the quotation. You’re almost done, but because of the lack of a decent digital process you miss out on a customer – and therefore also on turnover.
We pick the low-hanging fruit for our customers. We automate the entire process from lead to customer, and put it into one clear dashboard. This way, as a business manager, you can follow everything from A to Z. How many leads does a campaign produce? How many of those leads drop out along the way? How many become customers? What stage is each lead in? The personnel cost of sales people is very high in many companies. If sales people do not lose time calling leads and recording appointments – which we do – they can focus on what they are really good at. And that is still selling, closing deals.
Measuring ROI to the euro
We bring marketing and sales under one roof. That way, you can make your campaigns much more effective. Imagine that your campaigns for one brand on Facebook and on Google both generate 10 leads, but that 8 of those 10 Facebook leads become customers and only 2 of those 10 Google leads. If you’re purely marketing, you won’t get that information and so you’ll continue to put the same amount of effort into Facebook and Google.
If you also include the sales part and you do get that information, then you can turn the right buttons, redirect your budgets and generate much more turnover.