3 tips for investing in rental property


3 tips for investing in rental property

The stone is part of the fetish placements of the French. In addition to diversifying an estate, buying real estate for rent has many advantages. Provided you have a good deal.

With favorable conditions for home ownership, buying real estate for the purpose of renting it is an attractive investment. The key: rents to supplement his income and a possible capital gain on resale. But all the opportunities are not good to seize and the prudence must remain in order.

Define your goals

Not everyone invests in rental property for the same reasons. Is it to anticipate a loss of income upon retirement? To aim for medium or long term added value? To acquire a property in a city where you want to live your last years? Or simply to pass on an additional good to his children? Each investment project is unique and specific to the investor. Before launching, it must therefore take stock of its desires and expectations.

Target quality real estate

Once the project is defined, it remains to find the ideal accommodation. The buyer must first choose between new and old, then study a number of criteria such as: location – is the neighborhood nice? Are there schools and shops? Means of transport? etc. – the property itself – Will it be easy to find tenants? Is it better to rent furnished or empty? etc. – and, of course, its price. So many points which have an impact not only on the vacancy or not of the property and on a possible gain on resale.

Choose the right investment strategy

Last step before purchase: the choice of financing. Is it better to use a bank loan or, if possible, finance all of it with equity? You should know that mortgage has several advantages. Not only are interest rates currently favorable to the borrower, but in addition the interest paid is, under conditions, partially deductible from property income. It is also possible to opt for a hybrid strategy combining a portion of personal contribution and another of borrowing. By doing so, the owner lightens his savings effort every month without investing all or almost all of his savings.

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should we favor financial or real estate?


Wealth management: should you favor financial or real estate?

Risk assessment, expected return, diversification … It is sometimes difficult to choose the best composition of your wealth and to decide on what type of investment to focus on. Here are some great tips.

The specifics of the financial heritage

The “financial pocket” includes three asset classes. Each with its own specificities:

– the monetary supports, first, generally denote investments deemed to be risk-free, in which the investor is certain of recovering at least the capital invested. These are, for example, bank books (passbook A, LDD, CEL, term account, etc.), the counterpart being relatively low rates of return.

– the bond funds, then, are made up of bonds, these negotiable debt securities issued by companies or States in order to finance themselves on the markets. The main risk of this investment: the rate which can cause a fall in the current value and, de facto, difficulties for resale. To overcome this danger, it is better to invest in the medium and long term, and go through life insurance contracts.

– last class of assets: equity funds. By acquiring shares, the investor buys a fraction of the capital of a company, which gives him both the right to dividends and the right to vote at general meetings. This type of investment is considered more risky because it depends on various factors such as the state of health of a company, its growth prospects and economic conditions.

The specifics of the real estate heritage

Stone remains one of the favorite investments of the French. Reputed to be secure, real estate makes it possible to enrich a heritage that can be passed on to one’s children, but also to generate additional income at the time of retirement. In addition to the acquisition of a main home, there are several ways to develop your “property pocket”. Particularly with rental property, which has been particularly accessible since borrowing rates have dropped.
Investment in rental property can be done without necessarily buying housing directly. Indeed, for a few hundred euros, it is possible to acquire shares in the Société Civile de Placement Immobilier (SCPI) and thus to pool risks with other buyers while relieving themselves of all management of the property. A variant close to SCPI, the real estate collective investment organization (OPCI) is a more flexible and liquid investment, which can be taken out as part of life insurance.

Perfecting your wealth management

There are therefore many differences between financial and real estate investments, such as between assets placed in the short, medium or long term. In general, there is no ideal distribution of wealth. It all depends on the saver’s age, his family situation, his plans or his degree of risk aversion or not.

Obviously, it is important to diversify your portfolio to protect yourself against any loss that would be too heavy for personal wealth. But the choices made between such and such type of investment must depend above all on the situation of the investor. It should not be forgotten that a heritage is built over a lifetime, and it may happen that certain investments are more judicious or timely at an instant.

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Marriage, PACS, cohabitation: a real heritage issue


Marriage, PACS, cohabitation: a real heritage issue

Depending on your marital status, you and your spouse do not have the same rights and duties, particularly in matters of property, separation and protection in the event of death. Summary of the specifics of each of these conjugal lifestyles.

Marriage, PACS and cohabitation are different statuses which each have their own heritage implications.

The married couple

When they get married, the spouses have the choice between community regimes (community reduced to acquests or universal community) and separatist regimes (separation of property or participation in acquests). Depending on the matrimonial regime chosen, the management of heritage, property and sharing arrangements differ. The only common rules: those which are mandatory for all spouses and which are part of the primary plan (the right to family housing, the right to bank accounts, etc.).

In the event of death, marriage is the most protective status for the surviving spouse, who automatically inherits with the children or, if there is no descendant, with the parents of the deceased and is entitled to part of his pension. reversion. Another advantage: the surviving spouse is exempt from succession.

The PACS couple

Since 1999, couples have been able to opt for the Civil Solidarity Pact, or PACS. This status confers on the joint partners a certain number of rights and duties. They indicate, in an agreement, the property regime to which they wish to submit. The default regime is that of the separation of assets. On the other hand, unlike marriage, the PACS does not give any right to the surviving spouse in the event of disappearance, as regards both retirement and inheritance. The only way for the survivor to inherit is that the deceased has made a will naming him or her as an heir. In this case, the children are of course entitled to their share and the exemption from inheritance tax applies.

The concubine couple

Cohabitation is the least protective conjugal way of life for each partner since it is not defined by any legal status. On the heritage side, the separation of goods applies automatically and, in the case of goods purchased in common, the system of joint ownership is established. If one of the cohabiting partners dies, he transmits his patrimony and his shares in the goods purchased jointly to his heirs. If he wishes to leave a part of his property to his partner, the testamentary route is compulsory. But even in this case, the cohabiting partner who inherits remains considered a third person who therefore only benefits from a reduction of 1,594 euros, a rate of 60% applying beyond this.

Spouses and concubines are therefore less protected than married couples. But there are ways to ensure a certain standard of living for the survivor in the event of disappearance. These include savings investments such as life insurance and Perp.

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It was awarded to 3 people for one year


Basic income: It has been allocated to 3 people for one year

In November, the association MonRevenuDeBase launched a crowdfunding campaign to donate basic income to people drawn by lot. Three people were assigned basic income for one year.

[Mis à jour le 7 décembre 2017 à 10h41] What would you do with basic income? Will you still be working? Would you eat better Or would you resume studies? It is precisely to try to answer these questions that theassociation MyRevenuDeBase, created by Julien Bayou, the spokesperson for Europe-Ecology-The-Greens (EELV), launched at the beginning of November the first national citizen experiment on the subject.

The idea? Offer an income of 1 000 euros monthly for one year to an adult person drawn by lot, without age or income conditions. For this, the association launched a crowdfunding campaign in November 2017. “Each time we collect 12,000 euros, we will redistribute them by designating by lot a person who has registered on the site, and who will receive 1,000 euros per month for a year, without compensation, “says the association, on its website. On the day of the draw, nearly 80,000 people registered for the operation, “more than one in 500 people in France,” said the association. Thethe fundraising campaign has already raised more than 36,000 euros, or three basic annual incomes.

The stated objective of the operation : relaunch the debate on universal income in France. Even more, to silence the a priori. Often criticized, on the right as on the left, the establishment of a basic income is generally considered impossible or too expensive … It would even generate a society of lazy and lazy. “Let’s sweep away the ideas! Basic income is a necessity, not a whim“, proclaims MonRevenuDeBase. The association aims to demonstrate the human, societal and economic benefits of a universal income. This is why it organizes scientific monitoring of its experimentation.

According to the first results of the study conducted by Suzanne Bellue, director of the association’s scientific committee and researcher at J-PAL, a poverty research laboratory specializing in the evaluation of social policies, out of the 80,000 participants, a majority of them are young working people. The average age is 37, with 54% women. The association also collected the testimonies nearly 37,000 registered. “Pay my bills”, “improve the living conditions of my home”, “live with dignity” … Confessions are diverse but many go in the same direction. A large majority of registrants who responded to this survey would see this basic income as a means of make life choices.

Basic, universal or subsistence income, as it is called, “is income paid by a political community to all of its members”, specifies MonRevenuDeBase. The association defines it as being universal (everyone receives it, whatever their situation), individual (it is paid to all members of the household), cumulative (with other sources of income) and permanent (it is paid from birth to death).

Everyone would therefore be entitled to it: students, employees, unemployed, retirees, etc. Long considered to be utopian, this concept was recently invited to public debate, especially during the presidential election, under the impetus of Benoît Hamon’s project. “Today, we want to go further by concretely experimenting with the implementation of such an income,” Julien Bayou told BFMTV, when the operation was launched.

The draw was held Wednesday December 6 in Paris in the evening. Three people were thus allocated a basic income of 1,000 euros per month for a full year. The prize pool has already been relaunched and it will soon be possible to register for the next draws. Note also that it is possible to support the operation with a donation, even without participating in the draw. This donation naturally entitles you to a tax reduction of up to 66% of the amounts paid.

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