Where does PLZ's data come from ?
The data of the properties for sale, as well as the reference data of the properties for rent, is collected from internet property portals. This data allows us to define the average renting price per square meter per city, post code and street, and to calculate the rent and potential return of the properties for sale.
We have a large amount of data at our disposal, allowing us to calculate our figures with great accuracy.
How is the return calculated ?
Our model takes into account rent, mortgage charges, property charges, maintenance and renovations related to the building. Notary fees, land registry fees, our fees, maintenance and renovations related to the apartment, appreciation or depreciation of the property are not taken into account.
We use a conservative equity ratio of 30% and Credit Suisse's official 5-year mortgage rate. These figures can be improved with the actual conditions of the financing.
Why does real estate investment allow good returns ?
Real estate investment offers good returns thanks to the leverage effect provided by the mortgage. This leverage effect makes it possible to invest a multiple of the amount of equity (20% equity for 80% mortgage) and thus to obtain leverage on income.
How long does it take to complete an investment ?
It takes 3 to 6 months from the start of the research process to the receipt of the first income for the acquisition of an apartment and 6 to 12 months for a rental building.
Should property be amortised ?
In the case of a maximum financing of 80%, properties must generally be amortised down to 65%. However, amortisation is negotiable.
In what name will the property be acquired ?
Properties are acquired directly in the name of the client, who is the sole owner at the end of the investment process.
What are the risks?
The risk of not renting the property at the estimated price, or of not renting it quickly at that price, is defined by, among other things, the local vacancy rate, its micro-situation or its condition. We look for properties in areas with low vacancy rates that are well located and in good condition.
We also minimise the risk of an acquisition by studying all of the available documents related to a property, in particular the minutes of the co-owner meetings, which indicate defects, problems and renovation projects.
What does PLZ offer compared to another model ?
Our mathematical model uses a large amount of reference data, which allows us to quickly and accurately calculate the future rental amounts of over a hundred properties daily. Our strict acquisition procedures allow us to reduce the risks associated with a property investment.
What are PLZ fees ?
PLZ charges a single fee for its research services and a percentage fee on the transaction once a property is successfully acquired. This includes the visit, preliminary examination, negotiation, financing, organisation of the notary's signature, search and installation of tenants.
