Regular rental income and generous tax breaks…
We bring you up-to-date on buy-to-let investment, and give you our advice for trouble-free property ownership.
Buy-to-let: what are you waiting for - 19 March 2008
Is buy-to-let investment for me?
Investing in rental property is a wise choice whatever your needs.
- It’s an ideal way to prepare for your retirement, because the rentals give you an extra monthly income.
- It’s also a great way to make provision for your children’s future, because it means you’ll have a significant asset to pass on to them.
- Last, but hardly least, it’s a secure and profitable investment: you receive a regular monthly income, whilst your property increases in value.
- you’ll be buying a high-quality home that meets all the latest construction and safety standards.
- you’ll get the protection of effective guarantees.
- you may be eligible for significant tax breaks.
Can I afford an investment like this?
You can check if a buy-to-let investment is within your reach by estimating your borrowing capacity: it will depend on your employment status and personal financial situation. You can do the calculation using our
online simulator.
You can even invest on the basis of a 100% loan. Buy-to-let investment then allows you to build a valuable property asset simply and within a tax-efficient framework. Naturally, your rental income will cover a large part of your monthly loan repayments. How attractive does that sound?
You can even invest on the basis of a 100% loan. Buy-to-let investment then allows you to build a valuable property asset simply and within a tax-efficient framework. Naturally, your rental income will cover a large part of your monthly loan repayments. How attractive does that sound?
How can I ensure maximum return on my investment?
When you invest in a new-build property to rent, you can claim significant tax benefits under the Borloo and Robien schemes. This therefore reduces the total cost of your investment and increases your return.
Both these incentive schemes are subject to conditions concerning the level of rent, the financial status of the tenant and the rental period, but the attraction is a very substantial tax incentive, which could amount to 65% of the purchase price!
Both these incentive schemes are subject to conditions concerning the level of rent, the financial status of the tenant and the rental period, but the attraction is a very substantial tax incentive, which could amount to 65% of the purchase price!
How can I fund my plans?
- Which type of funding should I go for?
Building a solid funding plan that suits your individual situation is always the key to success. Don’t hesitate to arrange a loan, because part of the interest can be offset against your rental income. Use our simulator to calculate how much your monthly payments would be.
Simulate your loan >>
Some Bouygues Immobilier homes qualify for the Prêt Locatif Social (PLS) social housing loan. Granting exemption from property tax, as well as a reduced VAT rate, these loans attract very advantageous tax breaks that can offset up to 100% of your purchase.
It can also be used in conjunction with the Borloo scheme.
For more in information about PLS loans >>
- What type of loan should I go for?
Your choice is between a repayment mortgage and an interest-only mortgage.
A repayment mortgage is the traditional property loan, where the monthly repayments include a capital repayment element and an interest repayment element.
With an interest-only mortgage, you repay only the interest over the period of the mortgage, and all the capital as a single payment at the end of the period. This method can be more tax-advantageous, because you can claim much larger allowances against your rental income than you can with a traditional mortgage.
If you decide on an interest-only mortgage, you should take out a life insurance policy at the same time. This will allow you to save at your own pace in a financially-advantageous way, and help you to build the lump sum you will need to repay the capital at the end of the mortgage period.
Interest-only mortgage or repayment mortgage? >>
- Which mortgage term would be best for me?
The longer the term of the mortgage, the lower the repayments, but the higher the total cost of borrowing. Under the Robien and Borloo schemes, the ideal terms are 9, 12 and 15 years. Our simulator will show you the repayment schedules to help you choose which term is best for you and your personal circumstances.
Which is the best mortgage term for me? >>