Making a smart first-time investment - 16 October 2008
Most of us dream of owning our own “Home Sweet Home”, but buying your own property means meeting a number of financial conditions all at the same time. But what if you want to get into the property market now? Perhaps buy-to-let could be a good alternative solution. We look at all the potential benefits.
Making a first purchase within your capabilities
It’s not always easy to buy your own home, but when it’s not possible to buy your own house or apartment straight away, investing in property to let can be a profitable alternative.
Contrary to popular belief, investing in buy-to-let property is not the exclusive preserve of those who already own their home. In fact, this type of investment is perfectly feasible for a first purchase. By opting to invest in the buy-to-let market, you have the opportunity of finding a property that suits your financial resources. Investing in an area other than the one you live in often enables you to become a property owner whilst continuing to live in a place that suits your needs.
What’s more, your rental income will help fund your own rent and/or repay part of your loan, as you become a property owner.
Contrary to popular belief, investing in buy-to-let property is not the exclusive preserve of those who already own their home. In fact, this type of investment is perfectly feasible for a first purchase. By opting to invest in the buy-to-let market, you have the opportunity of finding a property that suits your financial resources. Investing in an area other than the one you live in often enables you to become a property owner whilst continuing to live in a place that suits your needs.
What’s more, your rental income will help fund your own rent and/or repay part of your loan, as you become a property owner.
Start building an asset base for the future
Investing in property to let can be a productive and profitable stepping stone to bigger things, because it allows you to build capital that you can later reinvest. You could think of it as a kind of springboard to the future.
Investing in property now is a great way to start building a personal asset base. In reality, your property is a capital investment, and the rents you receive every month are a source of income.
Naturally, it’s important to choose the right property that will give you the best return on your investment. You could, for example, invest in a region where property costs are lower or the economy is expanding quicker. In some regions, property investment can be an excellent opportunity for growth, because the supply of rented property is restricted, whilst demand for it is high. Lastly, if you make a capital gain when you sell your property, this additional finance may help you buy the new home you dream of for yourself.
As a leading player in the rental market, Bouygues Immobilier has all the expertise required to support you if you do decide to become a buy-to-let property owner. If you would rather not manage your property yourself, then our advisers can introduce you to one of our partner property management companies.
Investing in property now is a great way to start building a personal asset base. In reality, your property is a capital investment, and the rents you receive every month are a source of income.
Naturally, it’s important to choose the right property that will give you the best return on your investment. You could, for example, invest in a region where property costs are lower or the economy is expanding quicker. In some regions, property investment can be an excellent opportunity for growth, because the supply of rented property is restricted, whilst demand for it is high. Lastly, if you make a capital gain when you sell your property, this additional finance may help you buy the new home you dream of for yourself.
As a leading player in the rental market, Bouygues Immobilier has all the expertise required to support you if you do decide to become a buy-to-let property owner. If you would rather not manage your property yourself, then our advisers can introduce you to one of our partner property management companies.
Take advantage of great tax incentives
Property ownership can actually reduce the amount of tax you pay! There are now many laws in place in France offering tax-advantageous incentives to private property owners. Depending on your investor profile, some of these can provide substantial savings.
When you invest in new buy-to-let property, the Robien and Borloo tax arrangements allow you to deduct part of the cost of your investment from your gross rental income over a period of several years, with the result that your investment costs you less, and you keep more of your rental income.
When you invest in new buy-to-let property, the Robien and Borloo tax arrangements allow you to deduct part of the cost of your investment from your gross rental income over a period of several years, with the result that your investment costs you less, and you keep more of your rental income.
