How to buy when you want to rent later?

If you want to invest in real estate rental, you are spoiled for choice. But before buying to rent, it is worth thinking about what you will do with your investment. You can check to have a better idea before you buy a property that fits your criteria. Here are the questions to ask yourself and knowledgeable answers according to your situation.

To improve my future retirement

If the purpose of your rental investment is to get a pension supplement, it's all about timing. You will actually buy to rent so that the rents cover a portion of the monthly mortgage loan. This implies that the loan must be fully repaid as you approach your retirement.

To house children during their studies

If the object of the investment is to provide housing for children during their studies, there is a tendency to buy student housing to rent it. The idea is to get it back later for his own children.

To place a capital in the stone

If you want to buy an apartment to rent because you have a capital, you will of course seek a property corresponding to your budget. Remember to target homes 10% cheaper than the sum you have. And yes, you will also have to count with notary fees.

To transfer assets to my beneficiaries

Buying a home to rent is a good way to create a heritage that will be passed on to his beneficiaries. The idea is also pleasing to the tax authorities, who are waiting for you with estate and gift taxes.

I do not mind managing the rental

The classic real estate investment as everyone knows it, is the simple purchase - rental. An individual buys an apartment, looks for tenants, selects them, drafts the contract and collects rents.

My repayment capacity is sufficient

At the beginning of any rental investment, you must determine your borrowing capacity. But between the results that gives you a simulator and what a banker thinks, there is a margin. Indeed the lenders will withdraw 30% of the amount of rents that you hope to cash. The remaining 70% will be added to your income, while the monthly payments of the new credit will increase your debt ratio. For all banks, all monthly payments of all your credits must not exceed 33% of your net taxable income.  

I already have credits in progress, it may just

Banks are generally reluctant to give a home loan when consumer credits exist. However, some of them practice the principle of smoothing or landing. Clearly, the lender will grant you a deferred repayment until you have finished repaying your outstanding loans.

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