Strategies for successful rental investment, including in REITs

Investing in rental property is a powerful wealth-building strategy. But for it to be profitable, secure, and sustainable, it must be guided by strategic choices from the start. Between physical real estate and REITs (Real Estate Investment Trusts), several approaches are possible. Here are the keys to succeeding in your project.

1. Define a clear objective

A good investment starts with a clear vision:

• Do you want to generate additional income?
• Optimize your tax situation?
• Build a transferable estate?
• Prepare for your retirement?

Your investment strategy (type of property, location, tax regime) will depend on this objective.

2. Choose the right type of property

The choice of property is strategic:

• Old or new apartment?
• Furnished or unfurnished?
• City center or outskirts?

Domacap assists you in studying profitability, rental potential, and associated costs.

3. Optimize financing

Rental property allows you to use leverage through credit:

• Low down payment required
• Loan interest and insurance deductible in certain regimes
• Leverage effect on your wealth creation capacity

A tailored arrangement, with a good rate and suitable duration, greatly improves your net profitability.

4. Adapt the tax regime to your profile

Taxation directly impacts your net income:

• LMNP with actual expenses: ideal for furnished properties
• Property tax deficit: for work on unfurnished housing
• REIT with split ownership: to avoid immediate taxation

Domacap’s expertise allows you to choose the most favorable regime according to your situation.

5. Don’t neglect property management

Renting a property involves constraints: rent management, maintenance, turnover… You can:

• Manage directly (maximum profitability, but time and risks)
• Use a property management agency for more peace of mind

Rigorous management protects your profitability in the long term.

6. REITs: invest without constraints

If you’re looking for a turnkey rental investment, REITs (paper real estate) are a serious alternative:

• Access to a diversified portfolio of buildings (offices, shops, housing)
• No management worries: the company takes care of it
• Average yield between 4 and 6% net/year
• Investment starting from a few thousand euros

Domacap helps you select the most solid REITs, according to your profile and objectives.

7. Be accompanied by an expert

Succeeding in a rental investment means making the right choices from the start. At Domacap, we:

• Study your profile and objectives
• Select the best opportunities (physical or REITs)
• Structure financing and taxation

Our mission: transform your investment into a performing, secure, and sustainable asset.

Conclusion

Rental investment, whether in direct real estate or REITs, is a powerful tool for value creation. But it requires a clear strategy, well-informed decisions, and reliable support. With Domacap, you invest with confidence, maximizing your return and controlling risks.