Investments are changing day by day, and it's no longer the ones that made big 20 years ago that are the top spot in the investment market today. Individuals are looking to invest in safer investments that can offer them better returns.
There is a range of investment products among which you will surely find the one that suits you. So what are the most profitable investments in France?
What are the characteristics of a profitable investment ?
As in other fields, when it comes to investment, profitability comes at a price. The investments that work the most come with a significant risk, which happens to be proportional to the expected return. In addition to the risk, the invested capital is not guaranteed at all. You should then be prepared to choose one of the France returns of the https://www.homunity.com/fr/meilleurs-rendements site to be sure to grow your money.
Today, there are investments that yield gains of up to 8 to 10%, unlike the Livret A which enjoys a rate of return below the level of inflation (0.5%). Here they are !
The stock market, the best investment market
Among the investments that are doing the most in France, stock market investments come first and there is an explanation for this. Indeed, since companies are mostly the players that create more wealth, you will only have to become a shareholder to benefit from significant returns in France of up to 8.5% per year.
It is true that with a portfolio composed of widely diversified stocks, you will make big profits. But the stock market remains a risky market because of its instability. This implies that you can pocket 15% of capital gains one year and lose up to 5% the following year. Nevertheless, after 15 years, you will come out a winner, because the risk of losing decreases from year to year. This is where stock market investments are a sustainable solution.
Real estate crowdfunding, an investment with the best returns in France
Real estate crowdfunding is a new trend that makes it possible to invest in real estate projects. In many cases, it consists of financing the construction of a building with a view to selling it or selling its apartments individually.
For example, if you finance a real estate program up to 1000 €, you become a creditor of the developer. After 1 or 3 years, when the investment pays off, you can take back your capital and the interest it generated. This investment is very advantageous in that the investor can benefit from France returns of around 7 to 10%.
On the other hand, this type of real estate investment carries certain risks, including the bad faith of the developer. They may not refund your investment in full or return it to you late. You can avoid the risk of losing everything by diversifying your investments. Therefore, invest in several real estate projects at once.
SCPIs, a means of investment with monthly profitability
If you want to invest in the medium or long term, place your money in an SCPI (Société Civile de Placement Immobilier). Indeed, with an SCPI, your France returns are around 4 or even 5.5% with taxes. They are much more stable than the stock market.
It is an investment that has the advantages of real estate without its disadvantages. By investing in this investment, you can generate additional income from a residential housing project without having to manage it yourself. However, REITs have 2 disadvantages:
- Their entrance fees are very high ;
- Income is subject to corporate tax.
Rental investment: a profitable investment solution in the long term
Like REITs, rental investment has an average rate of return on France between 4 and 5% per year. Although it is an investment that pays off in the long term, it is necessary to follow a long procedure before starting to benefit from the gains. Before calculating earnings, it is essential to subtract:
- Fees ;
- Condominium fees;
- Notary office fees;
- Construction, renovation or maintenance costs;
- Unpaid rent guarantees.
In addition, it takes time to find a tenant who meets the solvency requirements to claim the France returns of this type of investment. Rental investment also has a tax disadvantage insofar as the returns are subject to the IFI (Real Estate Wealth Tax). However, over time, it allows the owner who wishes to resell his rental property to make a good deal.
