When the terms "real estate" in Switzerland or "real estate investment" are mentioned, the most common reactions are "it's too expensive", "I can't afford to buy it" or "it's far too complicated ". If, to this, we also mention real estate yield, the reactions are then “I already don't have the means to buy my own apartment, so one more to rent it is impossible”. However, investing in cheap real estate is quite possible in 2021! Contrary to belief, it is even quite possible to invest in real estate when we have no equity. And yes ! Who says low real estate price, also says small financial contribution! Or even no equity contribution in the solutions that we will present to you.
What do we mean by a cheap real estate investment?
A cheap real estate investment is often associated with apartments or houses in Switzerland. However, there are many other possibilities than this type of property when it comes to cheap real estate investment. Whether investing in Switzerland or abroad, the opportunities are numerous and often do not require any capital contribution. Here is our selection of cheap real estate in which you could easily invest.
Cheap property investment abroad in Portugal
Property prices abroad are not the same as in Switzerland. And yes, the prices are much more attractive!
Tourist areas also offer great opportunities to invest in cheap real estate. At Lica we are particularly fond of real estate investments in Portugal and more specifically in the Algarve. The country offers a multitude of advantages which are as follows:
- Taxation is advantageous for foreign investors.
- The climate is mild and it accommodates tourists throughout the year.
- Real estate prices are very attractive and are increasing steadily.
- Real estate investments in Portugal make it possible to obtain good returns.
- The economic recovery and the improvement in the country's situation following the health crisis have an impact on real estate prices, which should continue to rise steadily.
- And owning real estate in Portugal allows you to have a foothold for your own vacation or for your retirement.
Buying real estate today in Portugal is therefore the best time to invest in cheap real estate!
Parking spaces in Switzerland
One of the most sought-after objects in cities are parking spaces or garage boxes. Indeed, obtaining a parking space or a garage offers very good real estate returns because these are increasingly sought-after objects. This type of property is perfectly suited for a cheap real estate investment.
Land in the process of being decommissioned
In the same style as parking lots and garages, you can inquire about investing in land. Their prices are continually increasing and with the need for housing and the demand for construction continuing to grow, prices will continue to rise in the years to come. Investing in land is therefore a guarantee of real estate yield. Before investing in a land, ask yourself for what purpose you want to buy it and find out about its future classification. Will it become constructible or will it remain in an agricultural zone? Is there a development potential in the region?
Small commercial areas
Small commercial surfaces are a very good example of inexpensive real estate investment. Whether in large or small towns, some small businesses remain essential and will continue to exist despite the growing importance of internet commerce. Real estate yields for a commercial property are generally higher than for a residential property (5% to 7% against 3% to 5%). Prices in Switzerland vary from 50,000.- to 250,000.- for the first price ranges.
Invest at low cost in studios or small apartments
If you prefer to invest in residential, studios and small apartments are the perfect solutions. These are the most popular rental properties. Although the price per m2 is higher in comparison with larger apartments, the price per m2 rental is also much higher, which will give you a good return on real estate.
Real estate investment by crowfounding (or participatory investment) is also an interesting solution, however in these cases the movable property will not belong to you because you will only have a small part of the property.
You have no equity
The issue of equity is essential! However, Lica is there to find you a solution and give you the opportunity to invest even if you do not have the equity. Indeed, the advantage of a low-cost investment is that equity is much less of a problem. It is therefore quite possible to make a financial arrangement with which you will obtain financing for all of your real estate investment. So you don't have to raise any equity and immediately benefit from your real estate returns.
The financing solutions offered by Lica combine different strategies to allow everyone to meet their credit needs. Our strength therefore lies in our experience in combining these different solutions and thus obtain the desired financing. Lica is expert in the following areas:
- personal loan under the best conditions in Switzerland;
- mortgage financing in Switzerland and abroad;
- Business credit for SMEs
- the raise of creditworthiness (rating and income protection);
- the implementation of a deleveraging.
Our financing experts are also always available to provide you with individual information, without obligation.
Our job is to provide you with solutions!
If you want to obtain funding and make your dream come true, you can apply without obligation using the following link:
Start with a cheap real estate investment and grow quickly!
This type of “low cost” investment is ideal as a first investment in order to become known by financial institutions. Indeed, obtaining your first loan is often the most complicated and restrictive. The banks do not know you yet and each loan is registered. However, if all goes well with this first loan, the banks will be more open to granting you others and at better interest rates for future investments. Take advantage of the services of a company specializing in credit and therefore guarantee you the highest acceptance rate in Switzerland.
Once your first property is purchased, you can then take advantage of real estate returns to capitalize funds and repeat the operation with other future cheap real estate acquisitions.
Our conclusion on a low-cost real estate purchase:
The real estate markets in Switzerland and abroad offer diverse and varied low-cost opportunities. These opportunities are perfect in anticipation of larger investments in the future and are an excellent way to build your own funds and obtain advantageous conditions for a real estate investment in a primary or secondary residence.
Whatever your investment project, we recommend that you use our services for your financing. Our specialized teams are there to help you throughout the process and listen attentively to your project. Thus, by combining our various know-how, we can obtain the desired financing for you at the best market conditions.