AKERYS - Take control of your investment in rental real estate!

In the phrase "estate tax-free," there are two terms. The attractiveness of the tax benefit should not obscure the reality of the real estate purchase: this investment is not financial, it also depends on the reality of the rental housing market. The idea is not to design this investment as a tax-free pure product, but as the result of a good real estate investment. Therefore, in order to master the ins and outs of its investment, it is important to ask the right questions. To guide you in the grip of your investment, here are a few tracks.

• First, it is necessary to assess the financial performance of your investment. In other words, the effort necessary to analyze monthly savings generated by this investment and to consider what will be its performance under various scenarios ranging from optimistic to pessimistic. More than the tax savings, the rate of return of savings to be used to evaluate the usefulness of real estate investment tax-free.

• Similarly, it should not overestimate the rental income: a report estimated annual rent excluding charges divided by purchase price greater than 5% probably corresponds to a projected rent too high.

• This investment involves a debt, which is usually the following calculation: 70% to 80% of rents least 100% of the monthly payment. This simulation is used to estimate your borrowing capacity and monthly payment for credit. It should not be disconnected from the other funding needs of your household.

• Seek to rent the most expensive possible to minimize the effort of saving monthly is not a viable solution because it increases the risk of not finding a tenant, and thus lose the tax benefit at the end of 12 months. The proposed rent by your advisor is, if it is a professional quality, reflect surveys conducted in the field with real estate agencies.

• It should also be aware of the risks associated with the loss of the tax benefit if you can not find a tenant within the time provided by law. Thus, the failure rental (no first tenant), as well as the rental vacancy (no tenants following) may not exceed 12 months. Therefore, certain precautions must be taken:

- Make sure the property you are purchasing is located in an area approved by the zoning Scellier itself flawed and nuanced in the spring and summer of 2009 by two other cards: those of the Group and Credit Foncier Akerys.

- In terms of the municipality where it plans to invest, will she still the same interest at the time you receive your property after construction is completed? Do you have any idea of ​​the dynamism of the town, its demographic prospects, by relying on analysis of the INSEE, by checking with local government, etc.. Similarly, if you get help from an industry professional, and he recommends a sign of quality, it will be very precise information you provide in these areas.

- If you have not managed to rent in the six months following the acquisition of your property / departure from the previous tenant, the rent adjustment is the quickest solution. In all cases, the rent shall be in the market rent.

• In order to estimate the rent estimate, find out about the rental market. Internet and local agencies will be your primary sources of information do not hesitate to cross their data.

• Similarly, ask about the price of real estate. Therefore, you protect yourself against the mistake of overestimating the. He should not pay way too much on the pretext that allows the tax exemption, your total return could suffer! On the other hand, an overvaluation of the price of the property takes you to demand a high rent, then it is more appropriate to minimize both.

Be aware that some formulas "turnkey" include the various fees additional to this type of purchase (bank fees, costs deeds, mortgage costs, rental guarantee of failure, providing engineering). These have two advantages: first, the funding covers the whole supply and allows the investor to commit to a real estate transaction, 100% credit, without any initial contribution. On the other hand, the amount of the tax reduction is calculated on the full package allowing to optimize the deductible amount to claim on his taxes.

• Also check the amount of charges: make sure they are not too high.

• Keep in mind that this is not the ceilings set by the law defining the rental values ​​but each market that determines, based on supply and demand. The ceilings are Scellier limits not be exceeded under any circumstances and levels of rent charged or guaranteed. In 95% of cases, rents measured in the studies Akerys are well below these limits. With few exceptions appear in zones A or B1, mainly in the case of small units (studios or T1) because their rent reduced to m is higher. Rent ceilings are therefore mostly misleading elements for developers or investors, the question of their removal, leading to a more responsible and realistic setting market rents could be raised.

• Ask about the rental guarantees (in case of unpaid rent, no tenant, etc..) Offered by your real estate and the insurer. Ask them to know the criteria for selecting tenants, at your convenience and avoid those that seem too drastic.

• So, check that the insurer does not impose too many restrictions on candidates for hire, which would cause rejection of the majority of cases.

• Start looking for a tenant 4 months before getting your property, even if you purchased a rental guarantee of failure. Or take to choose your manager several months in advance so that it engages quickly prospecting efforts needed to rent your home.

• As for the location of the property you are applying for, here are some last common sense advice:

- Whether near or far from home, it is strongly recommended to take the time to visit this property: there is nothing like it to get an idea of ​​the quality of construction, location and the environment within which the residence.

To remember ...

Investment in rental real estate is not a product tax-free, it is also, as its name suggests, a real estate investment

The simulations on your investment, and its script are essential

It is essential to ensure that the investment will preserve a tax benefit (rent consistent rental demand existing pragmatism of the insurer vis-à-vis the files, etc.).