Rental Investment for Retirement | Credit Loans
Rental investment is a relatively heavy investment. It’s a long-term commitment, which makes it accessible. It also refers to a retirement supplement.
Summary of the page
- 1 The operation of the rental investment
- 2 What to avoid
- 3 Know when to start
Rental real estate investment is thus an interesting alternative for an annuity.
The FCPI is a side of the rental real estate that allows to lift the management and maintenance obligations but keeping the potential for added value.
The operation of the rental investment
The purchase of housing is done by a mortgage and will then be rented.
Such a provision ensures a return of money to offset the payment of monthly installments of the loan. However, the sum is not always enough, therefore one must think of investing oneself personally.
When the repayments come to an end you still receive the rent, without paying the bank, which makes it an annuity that is complementary to your retirement.
What to avoid
An additional cash inflow however means that you will have more taxation even if the monthly payments are higher than the rents.
A preliminary calculation is thus to be made taking into account a reduction of 30% for a micro-land scheme. The real diet is another option. This allows the deduction of other interest on the loan on rental income.
Know when to start
If your retirement age is 65, the project should not start after 50 years for a loan over 15 years or after 55 if you can pay monthly payments over 10 years.