(Partner Article) In order to live in retirement with peace of mind, saving for several years is essential. For this, several solutions are available to you. Among them, real estate investment in France has many advantages, and is very suitable for expatriates. Discover three reasons to anticipate your retirement today by investing in rental real estate from your country of expatriation.

Investment good family man

Investing in real estate is probably one of the best solutions to prepare for retirement when you are an expatriate. In fact, the risk is low and the long-term return is high, making it an ideal investment for an expatriate wishing to anticipate retirement over 15 or 20 years. In addition, the longer the loan period, the lower the monthly payments. Good anticipation is therefore essential.

Finally, the real estate investment in France will be particularly reliable and will ensure a significant profitability, provided to invest in densely populated cities, where the rental demand is important.

Of these, one can of course quote Pariswhich, despite high prices, has a very strong rental attraction reliable in the long run. Lyon and Bordeaux are the other two favorite cities of investors and have a very high rental demand thanks to the quality of life and the opportunities they offer as well as their favorable geographical location.

You could also read: Expatriate in local contract, how to prepare for retirement?

Inflation-indexed investment

Moreover, the Bank borrowing rate are very low in 2018. According to the ANIL (National Agency for Housing Information), 15, 20 or 25 year fixed rate loans are very low in the second quarter of 2018. For example, for a loan of 15 years, the rates are currently between 1.18% and 1.45%.

It is therefore very interesting to apply for a loan to invest in real estate. Indeed, while rates and monthly payments remain fixed, rents that are indexed to inflation, therefore increase over time. For an expatriate, it is therefore particularly wise to invest in real estate as soon as possible.

Finally, at the dawn of retirement, if you have invested early enough, your loan will be repaid and your rental income will improve your purchasing power and your quality of life.

This article could interest you: 5 steps to follow before investing in real estate

Real estate can help reduce taxes

When an expatriate buys a property in France to rent it furnished, it automatically enters the category of Leaseback (Non-Professional Furnished). The investor can, as such, benefit from the deduction of expenses related to the furnished rental (maintenance, repairs, management fees, loan interest …) on rental income.

This status allows deduct rental income an amount to compensate for the natural deterioration of the property over 30 years and furniture over 15 years. This depreciation thus allows to lighten the reported rental income and thus reduce the income tax rate.

Finally, even when you are no longer in a situation of land deficit, the LMNP status allows you to apply a 50% flat rate abatement on your receipts, provided that they do not exceed the € 33 100 mark.

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Note: Partner articles are written or ordered by an advertiser who determines the content. They are not articles from the French Morning editorial staff.


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