Real Estate Credit for Rental Residence Acquisition
You must choose the location of your future real estate investment. Example, If it is for students before buying a new 4-room apartment, check the proximity of schools, or even universities if you plan to offer it in shared accommodation.
Study the market
Once the location has been chosen, consult the real estate listings, as on the specialized website Find-un-logement.com, to find out the rate of vacant accommodation in the chosen district and the rates charged for rental. A property offered too expensive will be rented more difficult than another and its occupants will leave it at the first opportunity.
A final question to ask yourself before crossing the course: would I like to live here? Both in terms of practicality of the neighborhood up to the decoration of the property? You will multiply your chances of seeing it seduce others and easily find a buyer, if the accommodation also appeals to you.
Don’t see too big
With a reduced contribution (10%) and a loan limited to 20 years, your monthly effort must remain low so as not to penalize your repayment capacity. The real estate price per square meter of small areas is higher for purchase, but also for rental.
Think about tax exemption!
With the rental investment support system, the Duflot law, you will deduct, over nine years, 18% of the purchase price of your taxes for new housing. An interesting calculation, even if the rents for these dwellings, which are capped, are a little lower than the average.
Another solution, the Censi-Bouvard amendment which allows for the purchase and rental for 9 years, of new furnished accommodation in serviced residences, to reduce its taxes by 11% of the purchase price excluding tax and the recovery of VAT.
Rent less than a third of the income, possibility of joint and several security, deposit for the entire rent required from each participant in the event of shared accommodation. Ask the tenants for maximum guarantees in order to collect the rents and therefore to secure your real estate investment and above all to be able to ensure the repayment of the mortgage.
Put your property under management
A real estate agency will relieve you of worries, of procedures and will ensure much more effectively than you the recovery of possible debts. Advantages, especially if you live remotely, which more than compensate for the fees she will ask you: 5 to 10% of the rental charges included. In addition, these fees are deductible from your property income.
To preserve your real estate assets, it seems interesting to take out insurance, in the form of a classic unpaid rent insurance or the recent Universal Guarantee of Rental Risks, GRL, which makes it possible to cover debts up to $ 70,000 per housing and damage up to $ 7,700. Count 1.5 to 2.5% of your rents to be insured against rental risk via a traditional insurance company.
The little more credit plus
Investing in real estate can allow you to obtain additional income but also new charges. Be sure to calculate the profitability of the rental property. You can get a home loan for the acquisition of a property intended for rental under the same conditions as if it were a property for yourself.