Buying for your children

Your eldest child is off to university, and you’d like to help them out with their first apartment. There’s nothing stopping you from buying an apartment for them to live in without having to charge them rent.
If you have savings you can use them to fund the purchase, making an immediate investment, and one that will be profitable in the longer term, when your child moves on. In fact, there is a very high demand for student accommodation, which is why Bouygues Immobilier offers a number of developments close to universities.
Worth knowing: if you charge your child rent, he or she will lose entitlement to accommodation support funding. Remember that the Borloo law tax provisions do not permit you to rent to other members of your family, either younger or older (except special conditions). This restriction is not applicable for the Robien law. 

Division of property allows you to transfer an asset to your children whilst continuing to receive the associated rental income. Where your children receive no immediate benefit from it, this option offers long-term tax benefits.

• This allows you to reduce gift tax. The bare property value of a given asset is less than its market price, since tax is calculated on only part of the market value of the asset.
  

• When you die, full ownership of the asset will revert automatically to your children (the beneficiaries) with no further tax payable.

The principle of temporary donation of beneficial ownership is simple: you give your children the enjoyment of a rented property for a fixed period. They will then receive the rentals instead of you, which could be an ideal way of financing their studies! This solution also helps you reduce your income tax.

If you have any questions or concerns, please contact your Bouygues Immobilier advisor.