Better (still a positive adventure)
For an occasional investor (but this is valid for a first purchase), Céline Cokelaere of Unicorn advises defining a budget in accordance with a location valued by the buyer or potential tenants. Proximity to areas close to employment centres is essential. Then compare the offers in detail and select projects from developers with an excellent reputation, who respect the promises of the description and apply a good quality/price ratio. The question of medium or long term investment is also important in order to know which type of investment to favour, depending on whether you want to make a capital gain quickly or a pure rental return. According to Unicorn, the desired rate of return for a rental investment in Luxembourg City is 2-3%/year, outside of 3-5% year.
Faster (really always profitable)?
Fernand Hornung, founder of Unicorn, elaborates on this: "Even if today the increase in prices and rents do not evolve at the same pace and the rate of return tends to fall, it is still a more profitable and safer financial investment. For example, 3 years ago it was 4.5% in the south, 3.6% in the city and today it is 3.5% in the south and 3% in the city. After 6 years, with the capital gain generated on resale, the tax advantages, notably through accelerated depreciation with the rents, one easily finds a return approaching 8% per year.
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