Investing in a second-hand leaseback property enables you to meet numerous objectives, while enjoying a hassle-free management and a very attractive taxation scheme:
Compared to other investments, an investment in real estate is certainly one of the most reliable and durable. The location of the property determines the rental as well as the resale potential. The rental investment under the framework of the Leaseback scheme is an investment for the future that can be funded by contribution, or by credit, in order to make a profit immediately, or on the long term.
In case of death or disability, the guarantees offered by the different statutory schemes do not ensure you and your loved ones a proper level of financial resources. In the context of a real estate investment financed with a loan, the credit insurance will cover the repayments or the remaining capital due. You (in case of disability) or your heirs (in case of death) have a real estate and collect rent that will offset the decrease or loss of income due to the accident of life.
Nowadays the yield offered on liquid assets varies from 2% to 3.5% before taxes and the rates are adjusted every year. "Pierre Revente" offers investments which enable you to build up an asset of quality, to improve the return on your savings thanks to a higher yield of 4-5% which is annually indexed (to protect you against inflation ), and all that without the hassle of managing the property and net of taxes and social contributions (or very little taxed).
Whatever the source of your incomes (salary, Bnc, Bic, dividends, income property, investment, financial, etc ...), they are taxed (IRPP, PFL ...) and submitted tosocial contributions (CSG-CRDS).
When investing through the leaseback scheme:
- You can deduct for a period of about 30 years a capital allowance representing a total of 85% of the value of the property, and in addition you can offset loan interests and charges. All in all, you will thus receive tax-free incomes (or very little taxed) on the long term.
- You choose a sustainable scheme:
- - In case of resale or transfer, the new owner has the same advantages as the initial buyer. The property is amortized from the start again.
- - Taxation of leaseback is not related to a period of detention (often 9 years). You can sell at any time.
Demographic projections and uncertainties about the mandatory pension schemes require that all employees and non-employees build up a solution at the earliest for their personal savings. An investment through the leaseback scheme ensures a supplementary pension with stable, regular, indexed and tax-free (or little taxed) incomes.
Rental investment through the leaseback scheme in a tourist residence will allow you to combine real estate investment and private usage for a few weeks during the year. Unlike off-plan/new build leaseback developments, for which you must await the completion of the residence to occupy your property, the acquisition of an "existing" property allows you to select prime locations and enjoy your property as soon as the final deeds are signed.
Making a successful (rental) investment is a good thing. Not having to worry about it is even better. With the leaseback scheme, you buy a freehold propertyand at the same time you sign a commercial lease contract with a property management company who will become your sole tenant. The payment of your rent is guaranteed, whether your property is rented or not, and you are freed from all the management obligations. You will not have to look for a tenant or an agency to select and pay or to take care of the maintenance of your property. You are free from all worries normally associated with the management of "classic" properties.
Investing in a second hand leaseback enables to select prime locations, where it is increasingly difficult to obtain a building permit: seafront, ski-in/ski-out, downtown. The location of your property is the fundamental criterion that determines its heritage and rental value.
As a non-resident, the management of a remote property can be complex. Investing through the leaseback scheme offers the same benefits for expatriates and non-residents than to French residents. This is an excellent solution to build up a real estate asset with additional income or pension with no or very little taxes.