Alternative Real Estate Investments: Garages and Student Rooms Offer Potential Returns

It's no secret that investing in real estate can be a lucrative venture. But what if buying a house or apartment for rental purposes isn't financially feasible? According to real estate expert Gunther De Wilde, author of "Smart Investing in Real Estate," there are other options available. Consider investing in a garage, student room, assisted living facility, or holiday home.

Investing in holiday homes

In Belgium the average sales price of a house is 346.648 euro and that of an apartment €271.994 – a price tag not affordable for everyone. But investing in a holiday home can be a good alternative, especially if the location, popularity of the property type, and purchase price are favorable. De Wilde states that renting out a holiday home in the Ardennes can generate a gross annual income of €45.000 – potentially three times as much as a permanent residence.

Hotel rooms and student housing as an investment

Investing in hotel rooms may seem attractive due to the relatively low entry costs, but returns are uncertain and highly dependent on the local political and socio-economic situation and the hotel's management.

On the other hand, student accommodation can be a better investment choice. These are available starting from €110.000 and, despite the stricter regulations and higher student demands, still yield a good return. However, keep in mind that renting out a student room does involve some work.

Assisted living, service flats and garages

Despite the aging population, investments in assisted living and service apartments aren't always successful. Many owners struggle to rent out these properties, as most people over 65 prefer more affordable apartments with home care services if needed.

Garages can be an attractive alternative, with an average sale price of around €30.000. Returns vary depending on location, but the leases are simple, there's little risk of damage, and maintenance is minimal.

Investing in real estate funds versus direct investing

Although investing in real estate funds may seem less complex at first, De Wilde prefers direct real estate investments. This is because with a direct investment, you can benefit from the capital gain upon sale, have the option of borrowing for the investment, and can use the property as collateral for a subsequent loan.

Frequently Asked Questions

Is investing in holiday homes financially attractive?
Yes, depending on the location and popularity of the property type, investing in a vacation home can yield significant returns.

What are the benefits of investing in student accommodation?
Despite stricter regulations and higher student demands, student housing can still generate a good return. However, keep in mind that renting out a student room does require some work.

Why does Gunther De Wilde prefer direct real estate investments over investing in real estate funds?
With a direct investment in real estate, you can benefit from the added value upon sale, you have the option of borrowing for the investment, and you can use the property as collateral for a subsequent loan.