(Partner Article) Many expatriates are tempted to invest in their host country, especially when market prices are lower than in France. However, investing in France and especially in Paris has many advantages not to neglect and offers the guarantee of an investment made in the best conditions and in a reassuring context.
You invest in a stable and dynamic market
An attractive French city par excellence, Paris is a privileged destination for a real estate investment. If the prices are high, the capital guarantees first of all a strong rental demand, as well as a long-term added value, the resale of your property. The stability and the attractiveness of the Parisian real estate market make the capital a city where you can invest without risk, in all serenity.
You can get loans at very low rates
Contrary to popular belief, many banks are willing to extend mortgage loans to non-residents. In general, they require a contribution of 20 to 30% of the good. Certain criteria can also influence the obtaining of the loan, such as your professional situation: if you are an expatriate under a contract of seconded employee, or if you are in local contract but in an international company, the banks will be more able to accept your file.
It should also be noted that the interest rates offered by French banks may be slightly higher for non-residents. But given the level of current interest rates, this remains very advantageous. Currently, real estate rates have never been so low, with an average rate of 1.11% over 15 years, 1.25% over 20 years, and 1.47% over 25 years, in September 2019.
Also be aware that some banks are more inclined to lend to non-residents, the best is to go through a broker.
You benefit from tax advantages with the status Leaseback
The Lease status (hirer out of rent furnished not professional), is a tax statute which all the non-residents can profit, from the moment when they acquire a good in France, with the aim of renting it in furnished, and that the income generated by the lease does not exceed the sum of € 23,000 per year, or 50% of its total income.
This status has very interesting tax advantages. It allows in particular:
– to report its income in the category of industrial and commercial profits (BIC)
– to depreciate your property over several decades by calculating each year its devaluation according to its wear and its use
– to deduct the expenses relating to the furnished rent (the maintenance, the repair or the development of your good, but also the expenses of management, the expenses of agency, or the interests of loan, among others)
The LMNP status in real life is particularly adapted in Paris, where the rental demand in furnished is very high. Thanks to this system, you will not pay taxes for an average of ten years on the income generated by your investment.
You are preparing your future
Even if you do not have a rental investment project in prospect, buying real estate in Paris can be very interesting if you want to anticipate a future return to France, build a heritage to pass on to your children, buy to sell, or simply to anticipate your retirement with a safe and profitable investment.
You can manage your investment remotely
While geographical remoteness may tend to discourage some expatriates from investing in a property in France, it is important to know that solutions exist to carry out the project from its host country. Indeed, some real estate agencies accompany non-residents in their real estate purchase in France.
This is the case of Casamo agency, which allows you to control your transaction from abroad, without ever having to return to France. Casamo provides you a turnkey service, adapted to your expectations, in every step of your project: research of the property, realization of the administrative procedures, follow-up of the works, arrangement and decoration, etc. Throughout this process, you are followed by a single interlocutor who listens to your needs, for a successful investment, and a good in your image.
A tailor-made service for a successful investment, with confidence.
Thinking of realizing a real estate investment in Paris from abroad?
Contact Casamo via the online form, by email to (email protected) or by phone +33 6 13 84 92 07.
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