All investors have their eyes on the tax schemes. But when you buy a small space to rent, you do not buy taxes, you buy a property first. To choose, finance, rent and manage it properly, here are some common sense reminders.
Evaluate your future well
1,250 euros. This is not the price per square meter of the two-room apartment in which you plan to invest. At this price, we can not find much in the first 300 French cities. This is about what you will cost you a chartered real estate expert (at the rate of ten hours of work 125 euros excluding taxes) if you ask him to estimate the market value of a property before the buy.
If you do not want to pay for the services of this professional, why not try to slip into your skin by reproducing his method of work? Step by step, here is how one of them proceeds to estimate the value of a good.
First thing, check if the property that we see corresponds to the title deed: area? Living parts? Corridor belonging or not to the joint ownership? Second step: check if, in the regulation of co-ownership, the destination of the good correspondence to its use. Knowing that it takes two authorizations to transform the nature of a lease: the agreement of the co-ownership and that of the administration (the City of Paris, for example).
Then make a meticulous inventory or entrust
This is an extremely important step in pricing, given the cost of upgrading. Then comes what real estate experts call “weighing”: we “weigh” the charms and nuisance of the apartment – floor, orientation, vis-à-vis, street noise, quality of the plan, check the main loads (roofing, upgrading the elevator, cleaning, guarding …).
It remains to find comparable references in the neighborhood and to finely weight the estimate in relation to the price of notaries: you hold your price.
Adopt the right credit formula
Is the credit offer different for a rental investor and for a primary residence buyer? To this question, Estelle Laurent, the communication manager of credit broker Good Lender, gives two answers: “Real estate banks for both types of projects.
Conventional deposit banks, for their part, offer the same rate as for the main residence provided they have a “global banking relationship”, ie the domiciliation of salaries or rents. If not, they may increase the investor credit rate from 0.10 to 0.30 points. “
An investor loan has an optimal duration of fifteen years, often corresponding to the maximum duration of the tax benefits related to the rental of the property. Borrowing is usually 100% (less and less 110% including notary fees), and banks rarely lend beyond twenty years for a rental investment. On the insurance side, the coverage of the death-disability-work stoppage risk, which is essential in primary residence, is not mandatory, since the monthly payment paid by the tenant covers the loan. As a result, insurance is cheaper.