Your first real estate purchase

The purchase of a principal residence is often one of the most important acts of a lifetime. All the more reason to prepare it carefully! Definition of the project, visits, financing …: everything you need to know to make your first real estate transaction a success!

You decided to take the plunge and swap your cap of renter against that of owner? This is a good idea … especially as house prices tend to stagnate or fall and mortgage rates are at their lowest. Start by defining your project precisely by answering a few key questions: Where do you want to live? Do you prefer an apartment or a house? Are you rather adept of the old or the new? … Your answers will depend, of course, of your tastes but also of your budget. Establish it with realism. And think of leaving a place for the unexpected. Indeed, for a house as for an apartment, no one is safe from unexpected and expensive work!

The trails to find the good of your dreams

Two steps are possible to find your future home: go directly through an owner or call a professional (real estate agent or notary). Having a good knowledge of the real estate market limits the risks of “overpaying” a property. Unscrupulously ask the seller or his intermediary many questions. And this, from the first telephone contact. This sometimes saves you from moving around unnecessarily!

The research of a financing.

After finding the property of your dreams, you usually have to go in search of a home loan. You can become more efficient by using a loan broker. He approaches the banks for you and helps you to prepare your file. The rate offered by financial institutions depends on several factors: in particular your personal contribution and, to a lesser extent, the good management of your accounts. If you do not plan to buy in the immediate future, it gives you time to refine your profile … ideal borrower!

Long Term Furnished Rental: A Winning Choice

A major media questioned recently. And if the long-term furnished rental became “very fashionable with the owners”? The market and the news seem to confirm it. Here’s why long-term furnished rentals are now the winning choice for many French homeowners.

Tourist Furnished: The End of an El Dorado 

With the emergence of Airbnb , the tourist furnished (or short) has had its heyday. In less than ten years, the US platform has become a key player in global tourism, present in 191 countries and tens of thousands of cities. In France, the company even prides itself on not less than 65 000 homes on its site … If we complete the table with other actors like HomeAway (Homelidays Group), we can understand the concern of the traditional players tourism or local authorities who are anxious to see their rental housing stock shrink and the tax escape them.

Initially popular with individuals who first sought to finance their own holidays by renting their main residences, these platforms have long attracted a public of multi-owners, attracted by the effectiveness of these platforms of linking and, above all, by their economic attractions: higher perceived rents, “fuzzy” taxation.

But things are changing and the Eldorado is about to enter the ranks. In France, Paris, Bordeaux and now Nice [1], initiated a process that will not be long in generalizing. From now on, each property must be declared in town hall and can not actually be rented beyond 120 days a year. Better, these platforms will henceforth be forced to communicate to the tax authorities the incomes of each rental. In these conditions, the furnished tourist is no longer the Eldorado that so much promise us.

Opt for long-term furnished rental

Opting for long-term furnished rental – renting more than 120 days a year – is to take advantage of the advantages of the furnished versus the bare rental and those of the furnished apartment versus the tourist furnished.

The furnished meets a strong demand

Whether tourists, students or more and more mobile professionals, the furnished is an answer adapted to the changes of our society, eager for flexibility, change and turnkey solutions.

Higher rents

By choosing the furnished rather than the bare rent, your rents are mechanically superior from + 15% to + 25%.

An advantageous tax system

While income from bare rental is considered as income property , subject to a tax rate oscillating happily beyond 30%, the furnished rental is subject to the BIC (Industrial and Commercial Profits). A regime that induces a significantly lower or no taxation in some cases ( BIC in real life with depreciation).

Rents assured and less constraints

Unlike tourist furniture, the furnished apartment is framed by a one-year lease. This leads to fewer logistical issues to manage, various expenses incurred lower and, finally, a wear much lower good. The tenant, student or professional, is at home, therefore more sensitive to the maintenance of housing.

Focus on a concrete case  

And since nothing beats a demonstration based on numbers, let’s take a concrete example. Let’s say you are the proud owner of a 35 square meter Paris. Two hypotheses. The first: you choose to make a furnished tourism that you rent with great success 40 weeks a year. The second: you choose the furnished house and rent it all year round.

The comparison (see table below) runs fast. If the furnished tourism generates an annual gross income of 30,000 euros against 20,000 for furnished housing, the charges come totally change the deal. 9,610 euros of profit before tax for the first to compare with the 16,585 euros of the second. And yes, it’s time to move to the long-term furnished rental!