"RENTAL INVESTMENT: WHAT TERM FOR YOUR LOAN?"

Опубликовано: 16 Июль 2026
на канале: Monsieur Rodolphe
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Defining the loan term in a real estate investment project is a crucial factor.

Unfortunately, many people, or amateur investors, don't know how to do this and quickly find themselves heavily indebted due to miscalculations.

Similarly, you will encounter many banks that arbitrarily cap (without knowing why...) loan terms for rental investments.

My advice is to take out the longest loan term possible to maximize your surplus (or cash flow).

Keep in mind that if you follow the 70% rule, the rental income will cover not only the loan repayments but also ancillary expenses such as property tax, other charges, maintenance, vacancy periods, etc.

In practice, when you borrow for a longer term, your monthly loan payment will be lower, and therefore your surplus will be larger. This will automatically increase your net profitability.

I therefore recommend borrowing for a minimum term of 20 to 25 years.

By making your surplus earn more quickly than the cost of your loan, you can refinance your loan sooner by borrowing over a longer period. This may seem completely absurd and counterintuitive, but it's the reality. It's called the magic of compound interest!

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Video link:    • "INVESTISSEMENT LOCATIF QUELLE DURÉE POUR ...  

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