How to finance your holiday real-estate investment ?

Some of these solutions are unavoidable (like going talking to your bank), but others are much less known … and yet very efficient. Except that many owners ignore them. Pity! When you know that a badly-crafted budget can lead to the failure of your seasonal rental project, it is better to look twice.

Get a loan from your bank

This is the most known financing solution. Succeed in obtaining a “yes” from its banking institution is certainly a big challenge! Yet with the right method, it’s quite possible for most individuals. But before finding a financing for your seasonal hiring, the first thing to do is to go to see your banker to know your financial capacities. The goal of this first appointment is not to seek a loan or a credit rate. The purpose of this interview is to discuss with your client advisor your possibilities in the short or medium term to realize a real estate project (whether it is a principal residence or a rental investment).

Appealing to a real estate broker

The other solution to finance your holiday rental project (apartment, house …), cottage or bed and breakfast, is to call a broker. In most cases, this professional will find you a loan at a better rate than that offered by your own bank. Be careful though: it is sometimes more efficient to work with an independent broker than with major real estate brokers. Do a survey in your neighborhood: ask your friends if they have a real estate broker name to advise you. Once you have made your choice, all you have to do is make an appointment.

Use your savings (if any)

This solution is not to be neglected, but it is subject to a major condition: it is still necessary to have savings aside! If you’re an ant and have little money on a Livret A or savings account, it may be time to use it.

Make a loan from individual to individual

To complete your rental home financial needs, why not appeal to those around you to lend you some money? It is actually possible to borrow from an individual under very specific conditions.

Aid and subsidies

Often unappreciated, the mechanisms of aids and subsidies can give a real boost to your project. You can, under the renovation of the inheritance, benefit from the help of some organizations (State, Region, Department, European Union …) if you give life back to an old farmhouse for example, in a rural environment. To find out more, you must contact your city hall or your chamber of commerce and industry.

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