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Is real estate still a secure investment?

Written by Online Starts

Savings books, stock market, insurance, crypto-currencies, real estate: there are many ways to invest money or make investments. Nevertheless, investors prefer secure investments that generate regular interest and do not carry a high risk of capital loss. Investing in new real estate is a typical example of a secure investment with optimal profitability.

New real estate, a secure and advantageous investment sector

Investing in real estate is nowadays a particularly profitable and secure field. Unlike new types of investments such as crypto-currencies, whose values are volatile, real estate proves to be safe and dynamic over the long term.

It is important to choose your new real estate programs well to make your rental investment profitable. To invest directly in new real estate, several specialized websites offer effective support. Whether you are looking for a house, an apartment or a detached house, you will have the necessary follow-up to make your dream come true.

Real estate, a guarantee of security

Real estate is the best investment to secure your assets. Indeed, just like gold, real estate is a safe haven for long-term investments. This is justified by the need for housing which is a primary necessity for any individual. The demand for rental housing or single-family homes is constantly on the rise. Regardless of the economic situation, real estate owners need not worry because of three considerations:

  • Individuals will always need housing as part of a move or life change;
  • To attend college, young people will always need to find housing or a residence;
  • The demand for senior living facilities will continue to grow based on current and future data.

This ensures that your investment will remain profitable if you choose real estate. In addition, the value of your property is not at risk of a sudden drop in value, like stocks and bonds. However, if the value of your rental investment does fall slightly, the strong demand in the real estate sector will bring you back to stability sooner or later.

The advantages of new real estate

If the investment in the new real estate seduces by its secure character, it profits from other interesting advantages which make its notoriety near the investors:

  • The buyer benefits from an arsenal of legal guarantees (guarantee of perfect completion, biennial guarantee, ten-year guarantee) from the builder;
  • Notary fees are reduced compared to an old property
  • New properties comply with the latest standards and save energy;
  • The majority of the communes offer an exemption of the real estate tax to the owners of a new property.

With all these advantages, it is therefore proven that new real estate still represents a safe investment.

Tips for investing in real estate

Considering the security of real estate and its many advantages, it is best to invest in it to ensure a peaceful future. You must nevertheless be skilful in your approach by using the real estate tax exemption devices to make your investments profitable.

The Pinel scheme for tax exemption in new rental property

The Pinel law is one of the most used methods of real estate tax exemption in the last two years. Heir to the Robien, Scellier and Duflot laws, this device allows to obtain tax benefits on a new housing acquired and rented during a certain period.

The principle of the Pinel scheme is simple. The owner of a new property can deduct a percentage of the purchase price of the property on the income tax (IR). These tax deductions are offered between 6, 9 or 12 years of rental. Thanks to this device, you can obtain up to 63 000 euros of tax reduction over a period of 12 years.

The land deficit to reduce your taxes in the old real estate

Unlike the Pinel scheme, the land deficit allows you to save on tax in old buildings. To take advantage of it, you will have to generate a land deficit by carrying out renovation work in a dwelling whose total price is higher than your land income. The amounts of the various works undertaken will then be deducted from your taxable income. However, you cannot deduct more than 10,700 euros in a calendar year.

Investment in real estate through SCPIs

If you have a limited budget to acquire a property, you can invest in a Société Civile de Placement Immobilier (SCPI). These companies specialize in rental property and sell shares to individuals. The latter do not have to worry about management, which is entirely the responsibility of the SCPI. This type of investment makes it possible to generate regular rental income while enjoying real tax advantages.

Apart from the aforementioned investment aid schemes, the Malraux law, the Censi-Bouvard scheme and the Denormandie scheme are effective ways of making winning and safe real estate investments.


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