Published on : 10 June 20193 min reading time
To invest in new real estate, it is important to buy to rent. The principles of investing in new real estate are that this approach is at least in the medium term. The duration of the mechanism depends on the tax exemption. When it comes to investing in new real estate as a tourist residence, the holiday aspect must be added to the investment project. At the end of the tax exemption period, the investor in the stone will be able to sell the property with capital gains and then finance another project. It may also decide to keep the property in order to continue to collect rents.
Why invest in new real estate?
Investing in this type of operation makes it possible to build up a sustainable asset base. The fact is that real estate is a safe investment because the value of the property tends to increase in the long term. In addition, those who prefer the purchase of new housing benefit from a property that is likely to increase in value and does not require renovation work.
Investing in stone by choosing a new property offers energy performances that meet new requirements. This approach makes it possible to encourage resale by considering an increase in value. Investing in new real estate is also an opportunity to invest in heritage. Real estate is passed on to heirs and descendants, those who hold property can benefit from advantageous conditions for the transfer.
Buying to rent allows you to reduce your taxes
There are several tax relief schemes that encourage investors to become owners of new real estate.
This system concerns bare rented accommodation, respecting certain conditions such as geographical area, the application of low rent or the tenant’s resources.
Investing in rental property: an investment accessible to the most modest budgets
Buying to rent is a solution to acquire a property by taking out a mortgage that will be gradually repaid by rental income. This operation limits the impact on the investor’s budget. It is possible to become the owner of a new rental property without a contribution, because the financial institution takes into account future rental income when assessing the amount of the loan. Thus, the rental investment is accessible to the most modest incomes if the project validated upstream is done by ensuring that the amount of monthly credit payments is less than or equal to the amount of expected rents.