At a time of low interest rates, with a small contribution, it can be sensible to buy an apartment well placed, the rent to repay the loan and in the end pass on to their children. And why not ensure you can retire ?

In terms of real estate investment should not necessarily look for noon at fourteen hours. Purchase modest but well-focused can be a good deal, both in terms of performance in the perspective of a transfer of assets in family.

choose location

All investors in rental the know, the choice of the location of a property is fundamental. It is better to pay a bit more and be sure to find a buyer, than to have an empty slot on the arm. This is especially true when it comes to rent, not lease regulated or furnished, but on a seasonal basis (weekends, holidays and festivals), for example via a platform like Airbnb.

in The course of summer vacation, you fall in love with Saint-Malo, the city itself and its surroundings (the bay of Mont Saint-Michel, Cancale, Dinard…). In making the tour agencies, you will find that for 160 000 €, and with small renovation only, you can have a two room apartment with a balcony and garage, at Saint-Servan near Saint-Malo. Even outside the walls of the city, close to the beaches and a commercial offering abundant and quality are very attractive. So you decide to buy that property, by means of a contribution of 60 000 €. The 100 000 € remaining can be financed by a small loan, which is granted to you on 10 years.

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tourism pays !

The idea is simple : the loan of 100 000 € will be refunded “over the water”, each monthly payment being covered by the rental intermittent of the property. You stay fully in charge of periods of use offered to the rental (for example : a large portion of the summer season, all the school holidays between the months of April and the month of November). For your personal or family use, it remains the winter months (December to march inclusive), as well as many weekends during the year, excluding school holidays.

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You may have certain requirements for the occupants, for example to limit the access to the apartment to couples without children (it is only a two-piece), refuse, pets, etc, This is to avoid inconveniences that may result from an occupation “anarchic” places (holidays, repeatedly causing nuisance which could be used against you).

two birds With one stone

Why invest in the fund ? Beyond the possibility to offer pleasant weekend near Saint-Malo, you can think of your succession, that is to say, more specifically, to the transmission advance of a property recreation for your children.

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A simple tip in this regard is to give them only the bare ownership of the property, the usufruct remaining between your hands (to you, their parents). The advantage of this is that the gift tax is calculated on the value not the full property (160 000 €, in our example), but of the bare ownership only, after deducting the value of the usufruct that is not transmitted. The value of the bare ownership and the usufruct corresponding depends on the age of the donor. The more one gives the age, the lower the value of the usufruct is high, and therefore the greater the value of the bare ownership is low. The tax is reduced accordingly.

In our example, the question does not arise, to tell the truth, as each of your children receives a value of less than 50 000 € (100 000 € / 2, less the value of the usufruct), which is well below the amount of the reduction in the direct line (100 000 € per child). However, in the case where you have already made a donation less than 15 years ago, the donation of the apartment in Saint-Malo could give rise to the perception of a right of donation, if the deduction had already been totally exhausted. If this is not the case, the abatement that have only been used to the tune of € 50,000 per child, for example, 50 000 € of reduction remaining “cover” the donation of Saint-Malo. Still think it leads to some notary fees.

with Regard to the use of the sums received by the fact of the lease, you keep the hand as a beneficiary(s). Upon your death, your right of usufruct joined the bare ownership of the children, they become instantly full owners of the property, and this without incurring additional taxation.

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(Saint-Malo is only mentioned as an example, not of limitation)