Is it still possible to get a loan for rental investment and is this a profitable solution?

Real estate is one of the French people's favorite areas of investment. It does not require in-depth knowledge of finance and the risks are limited. Unsurprisingly, such projects have been very popular in recent years when loan interest rates have fallen to 0.80%, maximizing returns to owners. However, you probably know that since then interest rates on loans have skyrocketed and now average 4.50% for terms up to 25 years.

This question was already answered a few days ago, banks are starting to relax the conditions for getting a loan. After months of real estate loans being virtually unavailable, banks are starting to make it possible to borrow money again. This should breathe some life into the real estate market, although not all is rosy.

According to broker Vousfinancer

In 2015, 25 percent of his clients planned to invest in rental housing; currently, only 8 percent of his clients do. Maslow, an investment specialist, said people should turn to regional banks rather than national banks despite high interest rates on loans. Regional banks are more likely to accept an investment project by providing more competitive interest rates.

It may indeed be possible to get a loan now, but at an interest rate of about 4.50%. What's the interest?

There is still a lucrative investment in rental housing.

as rents are only rising. According to rental housing investment platform Beanstock, yields increased by 0.5% and rents across France rose from 3.10% to 5.38% depending on the type of property. In larger cities, you can expect a net return of 3.5%, but you need to consider the risks of renting.

But that's not all, we shouldn't forget that the laws on letting unprotected heating are becoming increasingly restrictive. You also need to consider the need for energy repairs, which leads to more and more fraud. Real estate investing has rarely been as challenging as it has been during the inflationary... Therefore, it might be wise to wait until 2025, when, according to the director of the French Observatoire de l'économie, interest rates on loans will start to fall.