4 misconceptions about investing in real estate

Real estate is a choice of the future that allows you to gradually create a strong and lasting legacy that will serve you in the long run as a supplement to your pension or as a capital to protect and help your family. However, it is worth remembering that renting investments is very different from buying a main home. Who says rent, says tenant, tax and management. The good news is that there are systems that allow access to tax benefits, such as the status of a non-professional furniture rental company (LMNP). Let’s consider this type of investment by four got ideas!

1. “Investing in rental housing will increase my taxes”

True and false, because it will depend on your choice of investment. As proof, investing in real estate with the status of LMNP (Non-professional furniture rental company) allows you to make a double blow:

  1. Create a legacy for yourself and your descendants.
  2. Save tax:
  • Or by releasing your rental income through a “simplified real” mode, which is also called the classic LMNP. This system allows you to deduct from rental income almost all expenses incurred during the year, as well as depreciate property and furniture. Accumulation that can erase the tax on your rent collected over many years.
  • Or taking advantage of the tax reduction to 33,000 euros. as ? Thanks to the Censi-Bouvard Act, which allows you to receive tax savings equivalent to 11% of the amount, excluding VAT, on any new purchase of housing in a residence with services for students or pensioners managed by a professional operator and entitled to this status. your investment (maximum amount: EUR 300,000).

2. “Investment in real estate is profitable only after repayment of the loan”

Fake. Investing in real estate that meets the requirements of LMNP status (for example, residence for students and retirees) is profitable after purchase. as ? With a 20% VAT refund on the purchase of your new furnished property, a tax reduction of up to € 33,000 or the possibility of earning rental income without tax.

3. “Real estate rental takes a long time in terms of maintenance and management”

Truth. However, by investing in a managed residence, you entrust its management to the manager-operator. The latter will take care of everything related to the lease of your investment every day: choosing a tenant, collecting rent, performing small and large works …

Good to know

The residencies they manage are targeted at very specific groups of the population (pensioners, students, etc.). So, your peace of mind, as well as good profitability and long-term sustainability of your investment will depend on the manager-operator you choose. By choosing a professional expert in these markets, you will gain access to quality products that will be long-lasting and in line with real social trends. No wonder investing in housing for the elderly is a strong gesture that will allow society to best cope with the aging of its population. You also have nothing to manage and you will receive personal support.

4. “Investment in a managed house is not as profitable as life insurance”

Fake. By investing in a managed residence such as Réside Études, you can achieve a profit of up to 3.90% excluding taxes / levies (1). In addition, signing a long-term lease with the operator gives you real visibility of your next rental income. Conversely, life insurance guarantees you a random rate of return – depending on the fluctuations of the markets in which you will invest. For example, in 2019, the average rate paid to savers was 1.46% (2) compared to 1.30% (3) in 2020 and 2021.

  1. The proposed rate on 01.06.2022 for the amount of real estate without VAT investment, according to the proposed commercial manager of the lease and available stocks.
  2. https://business.lesechos.fr/entrepreneurs/patrimoine-dirigeant/16067657-fonds-en-euros-le-taux-de-rendement-moyen-2019-est-connu-340234.php
  3. https://www.lerevenu.com/placements/assurance-vie/assurance-vie-quel-rendement-attend-pour-2022

Content created in partnership with Réside Études. No BFMTV member was involved in writing this content.

In partnership with Réside Etudes