Today, I offer you an article a little different from my editorial line as you know it. I decided to share with you my thoughts about investments and the economic potential owned by the city of Lyon, one of the great european cities of which the dynamism and attractiveness without any doubt. You will see in this article in what to invest in Lyon to generate cash flows positive.
As you may know, I left Benin (temporarily or not…only the future will tell…) to join France and I put my suitcases a few months ago in the beautiful city of Lyon.
Summary Of The article
Why Lyon ?
For personal reasons mainly, but the subject is not there. My more faithful readers know of my attraction to the investment of any kind and the income automated said ” passive “. And for those who don’t know me yet, I invite you to discover my blog that discusses many topics related to the enrichment and personal development.
I arrive in Lyon a few months ago. And like everyone when you arrive in an unknown place, the first few weeks are dedicated to the discovery of the city and surrounding areas, how do people live ?
How to operate the transport ? etc I’ve also been pleasantly surprised by the monuments of Lyon, its culture and its historical and architectural heritage. It is truly a lovely city that is worth visiting and I suggest you read this blog of a passionate, Lyon, which helped me tremendously when I came here alone (https://www.lyon-france.net).
At the end of a few weeks, my mind investor started and I started to get interested in the potential of the city of Lyon. Why ? Because more and more magazines and media praise of the city of lights as one of the most pleasant towns to live and where the business climate is wonderful. This is the topic I want to share with you in this article.
Invest to purchase his principal residence in Lyon
Unlike the capital, where prices have literally skyrocketed over the past 15 years and where it is preferable to rent rather than take on debt to life, Lyon still offers great opportunities. On the other hand, this trend is profitable tends to decrease as the real estate prices have also risen sharply, but without any measurement relative to Paris.
Hence the interest to invest the more quickly especially if you have a personal and professional situation stable. With credit rates among the lowest (less than 2% for 20 years), it is the time for you to look into the subject.
The neighborhoods that the lyonnais are keen currently are located in the 8th and the 9th district as they combine tranquility, local services, public transport and attractive prices. In fact, these are the 2 boroughs the least expensive of Lyon. The neighborhoods close to the heart still dear, as that of the Part-Dieu or Jean Macé, but the demand has not waned.
Investing in real estate rental in Lyon
If I had money and that I would like to invest in Lyon today, I would choose the investment in the rental property. Thanks to its economic dynamism, the city of Lyon welcomes every year a lot of students, trainees, and graduate students in its many schools and universities. A real bargain for investors wishing to get started in the rental property.
In addition, because of its size, relatively average, and its many means of transport, there are no district is disadvantaged. Only the prices differ from one area to another, and the presqu’île, next to Place Bellecour, remains the corner that is more expensive if one wishes to rent a dwelling of small size (for a studio or T1).
Thus, I wish to share my opinion on this matter.
All the investors and all real estate investors that I’ve met use the technique of breaking a large housing to rent rooms in a shared flat. You can therefore invest in Lyon using the same technique.
In fact, profitability is enhanced with this method, and the risk of housing vacancies, particularly in the summer period, is reduced. Transform a home into joint tenancy also has the benefit of making tax cuts.
In fact, this type of investment often requires a layout of the apartment of origin. These works can generate reductions of the taxes on the rental income.
Among the districts of Lyon are the most appropriate for this type of business, preference should be given to a near corner of a university :
- Close of the Share-God with even the Jean Moulin Lyon 3 university and the campus Science-U.
- Quai Claude Bernard in the 7th with the université lumière Lyon 2 and Jean Moulin Lyon 3.
- Close to la Doua in Villeurbanne with the scientific campus of the INSA and Claude Bernard university Lyon 1.
- Close to Gerland with the ENS and the ISARA.
- In the district of Grange Blanche with the faculty of medicine.
- On the peninsula, with its many private schools and the Catholic university of Lyon.
What accommodation to choose for this type of rental investment ?
You have understood, it is to partition a apartment in rooms to be rented individually.
Therefore prefer an apartment of great size, with a minimum of 3 bedrooms, all equipped and furnished with the little cherry on the cake for the students : internet unlimited wi-fi. As well, you can certainly rent quickly your room in a shared flat.
If you do a good job, invest in Lyon will become a simple game for you. This type of investment can quickly lead to returns ranging between 7% and 10%, and even generate a cash flow positive.
To buy a garage or parking in Lyon : a profitable business ?
You do not want to have to worry with tenants insensitive and bad payers ? Then the other solution that has the wind in its sails is the practice of investing in a parking lot or garage. And the city of Lyon lends itself rather well to this type of investment.
In effect, the policy of the city aims to dramatically reduce the number of motor vehicles and to give priority to transport modes in so-called ” soft “, such as biking or public transport.
Therefore, more parking spaces are removed or become paid. A real hassle for the residents who are not able to park in the evening returning from work. But the misfortune of one makes the happiness of others.
In effect, the owners of garages and parking spaces rub their hands because the rental demand is very strong at this time. And the average profitability are often in excess of 8%. With a lot less maintenance and work than the management of an apartment.
What are the areas where the rental demand in parking/garage is the strongest ? Without surprise, we find the peninsula but also the 6th arrondissement of Lyon and the Croix-Rousse, especially at the level of the slopes. A garage can be rented easily between 130 and 180 € / month.
On the same principle as joint tenancy, some landlords divide the surface of their parking space or garage for rent individually in the month of places for bikes. Again, the returns soar…
Invest in Lyon : the other sectors that is thriving in the city of lights.
Now, I’m going to review a few areas that deserve special attention for any investor. You will see that to invest in Lyon, you have several profitable sectors.
Recognized as the capital of gastronomy, the catering is one of the sectors that proved a massive hit. So if you have the entrepreneurial spirit and that you are skilled in the art, it is the time for you to start.
Two choices before embarking on the adventure. It will take a large budget to mount a quality restaurant in a busy street and is frequented by tourists, or by a business clientele.
While start an adventure-type “food truck” will be asked much more reduced. And the restaurants in lyon have understood the interest to offer a varied cuisine and quality, because the few food truck that I’ve had the chance to test were a treat.
Services to the person
With its high proportion of executives in the private sector, there are many opportunities in the services sector to the person. In fact, the population of executives and senior leaders are very seekers small benefits that allow them to save time when time jobs are very busy.
I realized the strong demand in Lyon I was strolling in the city, because it is not uncommon to come across agencies which offer all types of services : small jobs, cleaning, babysitting, shopping delivery, etc… Invest in Lyon by offering services to the person may thus be very cost-effective.
To launch the services to the person, the most simple choice is to go through a franchise already known in this sector in order to benefit from its reputation and its experience in the field.
Have you already invested in Lyon ?
Here ends this post, which had the mission to share with you some of the sectors to invest in Lyon.
As you have noticed, you have several areas profitable to develop business and generate passive income. If you have already taken the step, give us your thoughts and share with us the areas that you have chosen.
I hope that you have enjoyed this article and I now invite you to share it and comment on it.