In order to prepare for retirement, many people decide to invest in real estate. It must be said that many tax systems are in place so that owners of leased properties can benefit from good profitability. In addition to rent, capital gains can also be obtained through resale of real estate.
Invest in real estate in various legal forms
There are many forms of real estate investment, the first is personal investment. It includes buying a property and living there for at least 5 years (in order to enjoy tax exemption) before resale. There is also a joint pension insurance for buying real estate together. When the co-owner dies, his share will be shared fairly with the co-owner’s remains. Finally, the last living owner will fully benefit from the property. This form of real estate investment is often chosen by families.
Real estate investment can also take the form of SCI (Société Civile Immobilière). In other words, at least two people have teamed up to acquire and manage one or more real estate. This form of investment has many advantages. The first is that one owner can sell his shares without harming other owners. In addition, capital gains are exempt from corporate tax. There is also SCPI, which initially used savings to build rental buildings. Then it is enough to buy stocks.
Tips for investing in real estate
As long as you choose the right location, real estate investment can be a safe investment. You must also consider the current taxes when purchasing the property. Your first real estate investment must be your primary residence. Once you have paid off your credit, make sure that your expenses will be greatly reduced. Whether you are buying a main residence or renting a property, choosing the right location is very important. Ensure that the area where the property is located is easily accessible, close to shops, schools, etc. It is also recommended to evaluate the tax advantages when buying a property: at this time you can benefit from the tax exemption from traffic.
As long as you choose the right community and invest in real estate, whether old or new, is a safe investment. In addition, due to various tax systems, one can benefit from good profitability.