The strengths of the stone for retirement

Build a heritage often begins with the acquisition of second homes. Over time, the desire to prepare for retirement income is gaining ground.

Build a heritage often begins with the acquisition of second homes. Over time, the desire to prepare for retirement income is gaining ground.

The rental investment is a good track to get there. Unlike intangible investments such as securities or financial products, the stone is real. It has a use and an “intrinsic” value.

Build assets through credit

The stone is now one of the few investments that can be financed on credit. But to get a loan in times of crisis, it is better to have a solid contribution and a low debt ratio. If the bank accepts the case, rent and personal savings effort will pay the monthly payments.

Over time, the debt will decrease and heritage grow. Until the fifties, a loan over a long period allows both to have maturities in line with its budget and schedule the end of the credit, retirement came. Note that the interest on loans are deductible from income from property.

Prepare an income supplement

With rental income, this investment provides significant extra income. For those who buy on credit and repay the working life, it is possible to end up once retired (e), at the head of a property paid in full. At that time, rental revenues are boosting pension. In addition, rent indexation provides a bulwark against inflation.

Shelter oneself (or relatives)

Buying to rent can build wealth, however, exclude some donors, however, not a distant day to occupy the property. The retreat came, a rental property can become a primary residence.

Alternatively, the same property may also be helpful to relatives like parents, children or grandchildren or elderly parents. Unlike pay less taxes on principal residence, possession of a rental property (rented apartment naked, furnished residential services, etc..) Offers a multitude of ways to pay less tax, opting for one of the many schemes tax existing in the former as in the nine (Scellier, Robien, Borloo, Malraux, etc.)..

It plays on several fronts, namely to prepare for retirement income tomorrow, while playing down its tax system today.

Profitability variable geometry

Receive income to boost his pension is an attractive scenario. Nevertheless, the profitability of the stone is random. She can fall in case of vacancy or extended housing rent arrears. Even if the tenant has been carefully selected and offers a “good profile,” we must think about rental insurance against the risks. Choosing a professional to manage the property on a daily basis will save you many troubles.

Then the stone placement for retirement is it appropriate? More than performance or income tax, the stone can be seen as a tool for long-term construction of its heritage. There is no point to delay the project rental property until later to see how the market will evolve and values. Twenty years or more, a slight decrease of the purchase price has little impact on the internal rate of return of the operation.

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