The Right Kind of Rental Investment for You
A rental investment by the sea has many advantages and the possibility of profiting from it as a second home.
Becoming A Seaside Owner: The Winning Investment
The maritime coasts of metropolitan France reach 3,427 km in total length, which is many possibilities to invest in a rental property while ensuring you a pied-à-terre by the sea. It remains to choose the location of the future property: Brittany or French Riviera? Normandy or Basque Country? In this real estate submit guest post we will talk about that.
It obviously depends on everyone’s preferences for vacation destinations. But like any rental purchase, investing in a house or apartment by the sea requires following a few rules to ensure its profitability:
- Choose an attractive location not far from the beaches, but also from the city center and amenities (especially transport for accessibility)
- Elect a sector with high rental potential (tourist activities, hiking, sports, etc.)
- Take into account the prices of rentals already in progress in the neighborhood
- Prefer the area that is most likely to interest future tenants to maximize the rental possibilities
- Opt for accommodation in good condition and if possible to the latest standards.
Free Rental To Make Your Investment By The Sea Profitable
You can rent your property outside of your occupation periods, according to the principle of free rental. This type of rental, reserved among other things for seasonal rentals, is governed by articles 1708 et seq. of the Civil Code.
More flexible than the other leases, this lease only concerns furnished accommodation. It will allow you to benefit from the tax advantages recognized for non-professional furnished rental companies. Among these, a 50% reduction on rental income generated or the deduction of charges if you opt for the real scheme.
Good to know
For the rental management of your property, you can, if you wish, call on a real estate professional who will be in charge of finding you a tenant within the requested periods and of promoting your rental.
Invest By The Sea For Your Retirement
If you buy your property solely for the purpose of providing yourself with a pied-à-terre once you retire, investing in new housing by the sea can allow you to benefit from the advantages of the tax exemption system.
To take advantage of the tax reduction you must invest in a so-called “tense” area, that is to say where the rental supply is lower than demand. This tax exemption system gives you the right to a tax reduction ranging from 12 to 21%, provided you agree to rent your well for a period of 6 to 12 years.
Please note, as part of this arrangement, you must imperatively rent your unfurnished property and will therefore not be able to benefit from status. You will also have to rent your accommodation while respecting a rent ceiling.