Real estate: buy or rent?

9 April 2018

Alors que les taux sont encore très bas, acheter son logement paraît relever du simple bon sens. Mais tous les acquéreurs ne sont pas gagnants. Charges et impôts, problèmes de liquidité, plus-values aléatoires... Il faut bien réfléchir avant de s'endetter pour 20 ou 25 ans.

BUY OR RENT, THE DILEMMA IS ALWAYS NEW BETWEEN VERY LOW INTEREST RATES AND INCREASING REAL ESTATE PRICES.

Going into debt for fifteen or twenty years, seeing every year increase local taxes and charges, risking one day being subject to the IFI, the new wealth tax: none of these prospects discourages for the moment the French. They continue to plebiscite real estate.

Buying your main home meets several clearly defined goals. In addition to the moral satisfaction of having one's own home, the prospect of no longer paying rent at retirement age and engaging in forced savings by repaying a very cheap credit are two powerful arguments. Rising prices in recent years in major cities - especially in Paris - validated this choice. Those who bought in rural areas had less happy hand. This is demonstrated by the new real estate price indices (IPI).

AN ESSENTIAL PLACEMENT?

But the stone does not seduce only those who develop the tenant's complex and look for a principal residence. She is also very popular as an investment. According to a latest survey conducted by the Savings Circle, real estate is considered the most interesting and profitable investment, ahead of life insurance and equities! It seems that the French are not yet ready to enter the era of so-called "productive" savings.

Those who invest in stone also benefit from the very low interest rate leverage. And it is precisely this configuration that makes real estate performance competitive with risk-free investments. It remains to play finely the game on the fiscal plan. On the one hand, the government encourages purchases by granting tax cuts for rental investments. On the other, they heavily tax property revenues.

This is where the taxpayer must show skill to make the most of the subtleties of our tax system!

The success of a real estate investment is judged in any case in the long term and a well-conducted acquisition can form the basis of a well-built heritage.

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