Investment
Real estate investment solutions exist to build up your real estate assets and prepare for your retirement.
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Investing in new and buying the bare ownership of a property
What does it consist of ?
In the acquisition of a property in dismemberment of ownership:
- An institutional lessor holds the usufruct (the right to use and collect income) of the property for a period determined in advance,
- The investor holds the bare ownership (ownership of the property without being able to use it or collect the income) for this duration.
At the end of this period of dismemberment, the usufruct and the bare ownership automatically come together, and the investor becomes full owner.
Throughout the duration of the dismemberment:
- Investment in bare ownership is fiscally neutral for the investor because the property acquired does not fall within the tax base of the IFI,
- The property tax is the responsibility of the usufructuary as well as all costs related to the maintenance and management of the property.
Of course, a temporary dismemberment agreement is put in place and signed between the usufructuary and the bare owner in order to set all the terms of the dismemberment as well as that of recovery of the property once the usufruct is extinguished.
Life being made up of hazards, a secondary market exists for this type of investment in the event that you wish to resell the bare ownership before the extinction of the usufruct.
Invest in new or rehabilitated housing with the Pinel law
This device allows you to benefit from a tax reduction provided you rent the property for 6, 9 or 12 years. The accommodation must be rented bare and the tenant's income must be below a ceiling set by the general tax code, the rent ceiling is also set by decree. The tax reduction is therefore proportional to the duration of the commitment.
The latter allows a reduction in your income tax of up to €6,000 per year. This reduction will depend on the commitment period chosen:
Tax reduction rate
Until December 31, 2022, the tax reduction rate is 12% for a six-year commitment, 18% for a nine-year commitment and 21% for a 12-year commitment.
In 2023, the reduction rate will be 10.5% for a six-year lease commitment, 15% for a nine-year lease commitment and 17.5% for a 12-year lease commitment.
In 2024, the reduction rate will be 9% for a six-year lease commitment, 12% for a nine-year lease commitment and 14% for a 12-year lease commitment.
It is granted for the year of completion of the accommodation (or of the rehabilitation work) or its acquisition if it is later and charged to the tax for this same year and each of the five, eight or eleven years. following periods depending on the length of the rental commitment (six, nine or 12 years).
If the amount of the tax reduction exceeds the tax due for a tax year, the balance cannot be set off against the income tax of the following years.
Finally, the lessor cannot benefit from a specific deduction to be applied to gross income throughout the rental commitment period.
Roof
The tax reduction is calculated on the cost price of at most 2 dwellings.
The total amount invested is retained within the limit of the following 2 roofs:
- €300,000 per taxpayer per year
- €5,500 per m² of living space
You must also take into account the overall cap on tax benefits.
Source: service-public.fr
Be careful in 2023 and 2024 the system is changing and the tax advantage will gradually decrease, it is wise to buy a home now to take advantage of the best prices and the best tax exemption rates.
If you want more information on these investment and tax exemption methods, you can contact us.
Rental investment
To make a successful rental investment, whatever it is, the location of the property is important. It is indeed better to know the city and the district where you wish to buy to invest and to hope for a good profitability of your property and an easier resale.
The rents:
* will partially or fully cover the loan repayment.
* will be declared on your tax return in the property income category.
You will be liable for property tax.
But you will build up a heritage over the years...
Two solutions are available to you for the rental management of your property:
- the first is to take care of it yourself if you have time to devote to it, but perhaps binding in the event of disputes with your tenant,
- the second is to hire a professional for a fee, but you won't have to take care of anything.
You will have the possibility of renting your bare or furnished property according to your choice, the duration of the lease and the tax consequences will be different.