Is leisure real estate profitable?
Should we still invest in leisure real estate in a context of real estate crisis that has hit all sectors? Are there still niches where the investor benefits from attractive tax benefits while achieving a good transaction? Review of the different existing formulas.
The tourist residence
Whether it’s a seaside apartment or a high mountain hut , investing in leisure real estate can provide significant tax benefits.
First and foremost, the buyer will recover the 19.6% VAT on the property. Which, for example, still represents € 29,400.
Commit to rent the property
In return for this tax benefit, you must commit to rent the property for a period of at least twenty years. To find a tenant, you can either call a professional or do the research by yourself.
Investment on the coast
The choice to invest on the coast does not always correspond to an approach guided by a patrimonial logic, but rather to a choice of the heart.
This does not prevent the investment from being profitable provided that it is able to sort through the goods offered by the professionals and to exercise extreme caution.
Indeed, by the sea more than elsewhere, some prices are not at all related to the local market.
But this market suffers today from the competition coming from the other side of the Mediterranean. The investment in Morocco has exploded literally in recent years.That perhaps allow you to help find bargains.
Be careful, especially during a first visit, not to pack because the small square of the village or the port has seduced you. Avoid deciding on your first visit and especially visit several places. Move to several places on the coast. The ideal is to take advantage of possible holidays to take the time to find the rare pearl.
Buy in the mountains
Fifteen years ago, buying a flat or a chalet in the mountains was a cheap investment . Since then, the mountain leisure market has exploded and real estate prices with.
But as for investing in the coastline, it is important to hunt for property located in less quoted municipalities. Most often the tourist looks for a region more than a village.
If you invest in the Vercors, know that we will come in the massif for the beauty of the landscapes but to be in Villard De Lans or Lans en Vercors will be secondary.
Be careful : your investment in leisure real estate must include all the expenses related to your purchase. The notary fees of course, but also the costs related to the real estate loan such as warranty fees, processing fees and premiums related to credit insurance.