Apartment For Rent

Know the rules of the game

It is imperative to visit several homes, read the ads and regularly check 3D-immo.com order to have a good knowledge of market prices and thus benefits you can claim in the amount of your investment.

>> What are the prices per square meter?
>> How can you invest? Simulation of real estate credit

You’ve found?

Feel free to visit your future home at different times: you have to gain valuable information on the accessibility of the place, any noise or pollution, the brightness and sunshine, a quiet neighborhood, parking availability …
Still, contact its future neighbors is the best solution to learn more about the neighborhood.

Mandatory audits

If you are not building specialist, we recommend that you hire a professional able to learn about the importance and price of any work.

Checks must be carried on the surface of the housing, electricity and sanitary facilities, roofs, walls, heating, openings (doors and windows), insulation (for buildings with more than one unit: ask about compliance with regulations concerning asbestos), treatment against pests (termites, beetles) …

Check the services your local council planning to inform you about developments in the neighborhood and the environment.

For dwellings less than ten years: Ask the seller a certificate of insurance compensation work normally contracted for the construction or transformation.

For housing co-ownership: see the regulation, ask about maintenance costs and work.

For housing subdivision located in: see the subdivision regulation and the specifications that should be followed.

Buying or selling a property raises many questions and even fears far from the seller to the buyer. Yet the sale of a property is a legal transfer of property, it follows a simple legal procedure, among the undersigned, intending to avoid problems for both the buyer and the seller.
Rest assured, if different procedures are followed you can avoid problems.

I-Step: The drafting of the preliminary contract

The preliminary contract is a contract that determines the conditions under which will be for sale. It is a written provisional pending the deed. His signature is binding on both parties. Attention to the writing of this contract, we urge you to be conducted by a professional (lawyer or agent).

The preliminary contract can take different forms:

- The unilateral promise of sale: the seller undertakes to sell only within a specified price and, the buyer does not undertake to buy but must pay a “capital allowance” that can lose s it does not purchase the property for any reason other than those contained in the said conditions precedent specified.

- The unilateral promise to buy: Only the buyer agrees to purchase housing under specified conditions, the seller is bound by any obligation.

- The sales agreement or promise indenture (the most common): the two parties agree to sell one, buy the other conditions specified property (known as conditions precedent) and only if all are met. The transfer of ownership becomes real if all conditions are met.

Examples of conditions precedent:

One of the clauses may be obtaining a loan if the buyer can not raise the funds necessary for the operation, there is no obligation and payments under the capital allowance are returned to the buyer.
Another example is the security deposit paid by the buyer may be retained by the seller if the sale does not occur and that responsibility does not lie to the seller.

Whatever the form chosen, once again, watch this pre-contract because it engages you.

Feel free to take the time to analyze the different terms and ask questions of your notary: he is here to accompany you and inform you. Similarly, do not hesitate to negotiate the terms of the contract.
Do not pay any money before signing. It is best to make the payments directly to the notary or the estate agent, but never directly to the seller.

These contracts have the same goal: achieving rapid agreement between seller and buyer, allowing the lawyer to be the final sale, allowing the buyer to raise the money and the seller to vacate the premises.

But the real transfer of ownership has not only held at the time of signing the deeds at the notary.

top

II-Second step: The deed or contract of sale

As soon as all conditions are met, the sales contract is signed at the notary by the various stakeholders.
Either party (buyer, seller) keeps a copy of the contract and the undersigned shall deliver a title to the buyer.
At the signing, the sums are paid and the keys handed to the buyer. Either party may be represented by his lawyer, the fees payable for the notice will then be shared between these two notaries.

After determining what type of accommodation you wish to purchase, you must develop a financing plan necessary to obtain good credit.
In many cases, the borrowing is inevitable. And that bankers do not look the evil eye, you should provide a number of strengths that will make your application will be accepted.

I-The personal contribution

Mandatory in most loan agreement, the amount of your personal contribution to a large extent determines the amount of your loan. This initial capital is generally 10% to 30% of the amount loaned.
The contribution can come from personal savings of more or less long term as the ELP (housing savings scheme) or LEC (housing savings account) that are savings products more popular among the French who wish to invest in real estate.

The personal contribution may also be constituted by loans:
- 1% Housing Loans
- The loan rate 0%
- Loans to officials
- Loans of local

top

II-disposable income and repayment capacity

The bank to grant you a loan based on your disposable income.
This is the sum of all your assets (wages, annuities, pensions …) minus your liabilities (all accumulated charges: appropriations ongoing family expenses, insurance ..).

Your ability to repay will be equivalent to one third of your disposable income (about 30%: beyond that, there is a risk of over-indebtedness).

So if your net monthly income is 2,000 € and your loads to 800 €:
- Your disposable income is 1200 € (2000-800 = 1200)
- And your monthly repayment capacity is 400 € (1200×1 / 3 = 400).

If you need to pay lower monthly payments, your financial institution will extend the loan period.

Be careful what you pay to buy (see fees and taxes ) but also in term maintenance, costs of co-ownership, repair …

When you do your accounts, plan large: one is never free of problems.
For example, in the older building, there are often additional costs which we had not thought of or not seen.

Another example: you set a salary increase due to your age, but do you think of the renewal of a car or finance your children’s education?

The rate of credit is particularly low, it’s time to enjoy! Banks compete teeth: it is your duty to take advantage.
But be careful not to rush! The loan calls you for a long time, you and your family. It is therefore to make the right choices both at rates as the duration of the loan and changes in reimbursements.

top

I-Interest rates

The amount of the interest rate is crucial because the interest is an important part of the total amount of your loan. In addition, the higher the loan is longer, the amount of interest will be high.
However, there are plenty of ways that adapt to each situation.

The fixed rate loan maturities constant: This is the preferred level of French as the 80% home loans. The rate is determined in advance, you know what you’ll pay. In this type of loan, there are no surprises. However, there is often more expensive than a variable rate loan.

The fixed rate loan with flexible deadlines: You can adjust your payments go up or down according to changes in your income and your expenses.

The loan indexed adjustable rate: A little more risky, monthly payments vary periodically up or down depending on a market index.

The adjustable rate loan to adjustable deadlines: The loan period be extended or shortened depending on the variation. A soft loan.

The capped variable rate loan: With this system you are assured that the rate will not exceed a certain threshold relative to the initial rate (1 to 3 points).

The loan maturities carryforwards: A loan which can be very useful in case of temporary difficulties because the monthly payment is deferred until the end of the credit.

Vote Nesting: This formula smooths monthly by optimizing several loans. Your monthly payments are constant throughout the repayment. A smart choice.

>> Calculate the cost of your credit at the rate

top

II-Term

There are several types of repayment.

Refund annuities constants: the solution if you think your income will not increase in large proportions in the future. Your monthly payments are the same throughout the term of the loan.

Refund annuities progressive: the monthly payment increases each year according to the terms of the loan agreement.

Refund annuities flexible: Your annuity and the repayment term may increase or decrease depending on the evolution of your disposable income.

Clearly, at equal rates, the more you put time to repay your loan, plus the cost of credit will be high because you increase the amount of interest owed. However, over the repayment term is longer, lower your monthly payments will be: Do you prefer a cost equivalent credit, pay € 550 per month for 15 years or 380 € a month for 20 years?

>> Calculate your cost of credit by length

top

III-TEG

The Annual Percentage Rate includes the effective interest rate, the fees and insurance.
It is crucial in choosing a loan since a difference of 1% APR on money borrowed can be realized by a difference of several thousand euros at the end of the contract.
Feel free to shop around, ask several simulations according to different loan packages. Again, rushing is sure to make a bad deal.

>> How much can you borrow? Simulation of real estate credit

top

IV-pieces together to constitute a loan application

In all cases:
- 3 recent payslips a photocopy of the last tax bill (2 parts)
- A family record of civil status or copy of family register or national identity card
- A bank account or mailing

Some institutions will ask:
- The last 3 monthly statements of bank account
- A certificate from the employer stating the date, position held and the net annual salary
- Proof of personal contribution
- Evidence of the charges, rents, pensions
In case of divorce, the divorce.

To buy an apartment in an apartment building new:
- The preliminary contract (compromise or promise of sale)
- Plans.

To purchase an existing dwelling:
- Before the contract or certificate of the notary stating the purchase price and the designation of housing.

For upgrades:
- Design specifications and estimates,
- Building permit for big jobs,
- The title or certificate of the notary stating the origin of property, the purchase price and the designation of the property subject of the work,
- Plans,
- Prior notification of work in City Hall.

For the construction of a house:
- The building permit,
- Cost estimates,
- Plans sides
- The construction contract,
- Certificate of the notary stating the origin of property, the purchase price and designation.

You’ll also have some documents to complete:
- The questionnaire of insurance for each of the borrowers debit authorization completed and signed
If you get 0% of the loan, the information “0% loan from the Ministry of Housing.”

The AL and the PLA

The Allowance for Housing and Housing Assistance Custom can help you repay a loan for the purchase, construction or improvement of your home.
If you repay a loan or a loan under agreement with the assumption that social and you meet certain conditions (limited resources), you can receive this assistance.
Ask your CFO

>> APL: Help personalized housing
>> ALF: Family housing allowance
>> ALS: Allocation of social housing

The moving allowance

If you move during your third child (or more), or if you already have three children and the last month of two years, you may be eligible for relocation allowance.

To receive these bonuses, the removal must be completed within a period of 29 months from the first day of the calendar month following the third month of pregnancy and the last day of the month preceding that in which the child reaches his second birthday. The moving allowance is allocated in the double limit of the expenditure actually incurred and documented and ceiling of the premium.

I-Overheads

Borrowing costs

During loan negotiations, we must keep in mind the concept of total cost of credit. The negotiation of interest rates is important, but remember the TEG (percentage rate) which represents the true cost of borrowing.
It must include:
- The costs of opening and examining the case: These fees are free for the banker or broker loan, they depend on one institution to another.
- The cost of compulsory insurance (death, disability) and optional (job loss)
- The making of mortgage or lien of the money lender who guarantees your lender, you can avoid these costs, you need a third party guarantee or a specialized guarantor of your loan.

top

Notary fees

The Notary’s fee is based on the amount of the purchase and regulated by decree. All notaries will charge the same fees therefore.
From EUR 0 EUR 3000: 5%
3000 euros to 6000 euros: 3.30%
From 6001 euros to 16,000 euros: 1.65%
More than 16,000 euros: 0825%
Collecting taxes on behalf of the Treasury: registration fees, taxes, stamps …
Other expenses incurred while your account: salary of the registrar of mortgages, planning certificate, surveyor fees, shipping costs …
The notary may request a deposit for the costs he has to commit to your account.
You should also know that legal fees are higher depending on whether you buy the old (7-8%) or nine (3%).

top

The cost of real estate agents

The cost of real estate agents are free. They can therefore varied from one agency to another.
They are usually calculated as a percentage of the transaction, but may also be flat.
They must in all cases be clearly displayed in the agency.

top

II-related costs vary depending on the type of acquisition

For purchases of new housing or the future state of completion (less than five years): 19.6% VAT tax, real estate advertisements.

For purchase of old housing (if housing more than five years or has been a first mutation): registration fees, i e. Departmental registration law whose rate set by the General Council, varies from one municipality to another, and the municipal tax.

For the purchase of land
The duties and taxes owed for the purchase of land will vary depending on the nature of the vendor land.

- If you buy the land to a business or an individual, you pay the registration fee on the price of land;
- If you buy the land to a local community: you pay VAT on building land, if the local community has taken this option, otherwise you pay the registration fee.

Entries to the expenditure of public facilities which may be collected in the department or municipality, as such can be claimed at the time of obtaining building permits, participation in various networks connecting to the ground (sewer, water, electricity , gas, Highways …).
If the land is located in a subdivision, these fees are either included in the price of land, or the beneficiary of a building permit;

corresponding optional charges, if any,
- The demarcation made by a surveyor, which guarantees the area and boundaries of the land;
- The study of soil carried by an expert if in doubt about the nature of the soil, this study is strongly recommended to avoid unexpected cost overruns during construction. If the land is located in a subdivision, these costs are included in the price of land.

top

For construction
VAT on the work is included in the overall price.
Certain fees and tax charges may be imposed by the municipality or county and be requested in addition to the price of the house, if you are receiving building permits;

- Tax Local Equipment (TLE) in the most common;
- The county tax for funding the Council of Architecture, Urbanism and Environment (CAUE);
- Tax departmental sensitive natural areas;
- Payment for exceeding the legal maximum density;
- Participation for exceeding the coefficient of land use.

top

Other charges may be added to the price of the house
- The costs of adaptation to land and some capital works inside or outside indispensable for the implementation and use of the house if you sign a contract to build the house (Law of 12.19.1990), these Fees must be specified in the overall price mentioned in the contract (see “The construction contract”);
- The cost of connecting to various networks (water, electricity, gas, water-borne sewerage, telephone …) of the property line at home;
- Damage insurance compulsory-work that supports the repairs in case of disorder in construction;
- Options not included in the price of basic materials such as;
- Costs incurred by potential work done by you;
- Revision of the construction price, provided it is stipulated in the contract.
- The remuneration of the professional who will assist you upon receipt of the work, if any.

I-Definition

Being co-owner is jointly owning a property (eg building) divided into lots (eg apartments).
This means that each owner owns its units but also co-owner of the common.
It can thus dispose of his property, rent, or sell, depending on the property right, but within a number of collective rules (Regulation of condominium, as the co-ownership).

top

The units

The batch can take different forms: flat or house, parking, basement or other room that belongs to an individual or a corporation.

top

The Public

The common material: it is part of a building or land allocated for use by all (stairs, elevator, floors, yards, bearing walls, roof …)
The common law: it is associated rights to the common parts (right elevation, the right to construct new buildings in progress …)

top

II-Organization of the condominium

Condominium rules

This is the regulation that all owners but tenants must comply.
It therefore applies to everyone, even if passed and amended only by the joint through the General Assembly.
Condominium rules is given to each tenant or owner and sets the rules of the common enjoyment, purpose and management, and this under the law of 10 July 1965.
It must include a description of the lots (located in the condominium building, area …) and especially the share (expressed in “mil”) that determines such costs and expenses of your condo and your weight in votes.
Attention, condominium rules may be contrary to law, some common clauses are illegal (prohibition of pet ownership in the condominium, for example).

top

The General Assembly

The General Assembly is the meeting of all owners.
She has held at least once a year to make decisions concerning settlement of joint or vote for the budgets of the condominium or for any decisions regarding the building or subdivision.
The meeting of owners in general meeting takes place on the initiative of the trustee or council of trade unions or by one or more co-owners representing at least ¼ of the votes.
The notice of meeting shall include an agenda and all documents relevant to the preparation of this meeting (specifications, budget estimates, contract trustee …).
It must be sent by registered letter with acknowledgment of receipt or delivery directly to owners cons attendance sheet.

top

The union council

The union council is a consultative body consisting of a number of owners appointed by the General Assembly and charged with assisting and monitoring the trustee in its mandate, its management and its accounts.
The members of the union council are elected by the General Assembly by a majority and strengthened for a maximum of 3 years renewable.
The union chairman is elected by the members of this council. It will remain the main interlocutor of the trustee and will be responsible for the relationship between the trustee and the owners. Its function may be some fees that will be.

top

The trustee

The trustee’s role is paramount in the resilience of a condominium. It must be the holder of a professional property management, only proof of its powers and its financial guarantees, and must be covered by her insurance professional liability.
A trustee is appointed by the General Assembly and is responsible for implementing the decisions taken, to administer the condominium, and to act lawfully and to represent the union council.
The trustee can be chosen from the owners, but this function requires large legal and accounting expertise and financial guarantees that do not necessarily volunteer trustees.
The trustee is elected by the General Assembly for a renewable term of 3 years.

He is responsible for:

- Enforcing the regulations of the condominium
- Implement the decisions of the General Assembly
- Take charge of the current administration and conservation of the condominium
- Recover costs from owners,
- Take charge of budget and accounting standard,
- To vote by the general meeting (at least once every three years) the decision to establish special provisions for dealing with maintenance of the common
- Advising the owners (in particular, warn of the consequences of decisions taken in general meeting)
- Maintain records of the condominium
- Representing the condominium law.

His liability may be incurred if it makes mistakes or errors in the management of the condominium. The Union Council may then turn against him, unless he acted after a decision passed by the General Assembly. The trustee must have a special insurance for this type of conflict.

top

III-loads and work

Majorities and work

The work done within the condominium must be first passed by the General Assembly. However, depending on the nature of work, voting rules differ.
Reminder:
- A simple majority is a majority vote of owners present or represented at the meeting.
- Corresponds to an absolute majority vote of the entire assembly.
- The double majority is a majority of all owners and a majority of 2 / 3.

A simple majority is required in respect of repairs and maintenance (excluding repairs and small items of equipment which are the responsibility of the trustee).

An absolute majority is required in respect of the work according to regulatory or legislative provisions, as for insulation or energy-saving, work on compliance, installation of antenna or cable connection.

The double majority is needed on her for all the improvement work, ie work involving the processing of one or several pieces of existing equipment, adding new elements, and development or the establishment of common premises (s.26 of the Act of July 10, 1965).

top

Directors’ fees and costs: the distribution of common

Directors’ (or thousandths) determine the share of ownership of your property in the common elements and weight of the votes in the General Assembly.
It is the surveyor to assess the division’s share of the condominium according to a number of criteria (rental value of the lot, area, floor, sunlight …)

Specifically, a studio on the ground floor with a small area facing north and will share a lower penthouse apartment with terrace facing south and thus lower costs of ownership

Charges for repair, maintenance or administration are divided between the owners of royalties by the loads on the same principle as for royalties condominium.
Thousandths of loads are generally equivalent to a thousandth of condominiums.

The law requires the condominium rules to distinguish two types of condo fees:
- General common expenses (storage, maintenance, administration) that are divided according to the principle of royalties charges, usually the same as the Directors’ condominium.
- The common expenses or special individual associated with the use of common equipment (elevator) or utilities (cold water) which are distributed according to the criterion of utility.

It follows that the utility owner has an equipment or facility that will be calculated at his own expense.

However, this criterion is far from obvious to determine in some cases and can lead to heated discussions at general meetings. Thus when it is easy to determine the share of common expenses for the individual elevator (there, the owner of the last stage will pay more than the first), it is more difficult to fix such costs in the case of installation of antenna or cable connection, for example, or in the case of cold water in the absence of individual meters.

top

Payment of expenses

It rests in the trustee’s management and administration charges after the vote on a budget of expenditures by the General Assembly.
The trustee appointed by the condominium is also responsible for collecting charges from the owners.

Specifically, the trustee launches each year, calls for funds that are cash advances for expenses determined at the meeting of the General Assembly. Then, at the beginning of each year and every quarter, provisions are made.

It should be noted that all owners must pay these charges even if they do not occupy the premises (empty slot), or they challenge the costs (they can later be reimbursed if are successful).

top

IV-The rights and obligations

Joint ownership confers two distinct types of rights: The right of property (on the units) and condominium law (concerning public areas).

The rule is simple (s.9 of the Act of July 10, 1965): the owner “has the units included in the lot”, “uses it and enjoys free,” provided “does not impair the rights of others owners or the destination of the building. ”

Be aware that some provisions of the condominium regulations may violate the right of property (eg the ban on pet ownership in the condominium).

top

Rent, sell

As owner, you can rent or sell your lot as you wish unless the rules of the condominium sets limits imposed by the destination of the condominium (rental furnished in a luxury building, for example)
The absolute prohibition of rent and the obligation to submit a short sale approval of the Union Council or the General Assembly are illegal.

top

Divide his lot

The desire to divide his lot better to sell or rent can be a good investment.
Normally, the freedom granted to the owner in this case is complete unless it involves work on the common areas, or whether this division is against the rules of the condominium on the destination of the building (eg a small condominium may via the regulation prohibiting division to limit the number of occupants, and thereby maintain a certain standard related to peace).

top

Engage in an activity

Again, freedom associated with the property may be limited by the destination of the building. Condominium regulations clearly define whether the lot is for residential use, commercial, professional or mixed.

However, housing may have a mixed destination, but the exercise of a profession can also cause discomfort or abnormal conditions of neighborhood that could force the person to stop his activity. Respect for the destination of the building is paramount even if the definition of these destinations can be difficult.

Thus some clauses provide for the exercise of a professional activity but not commercial (the clause of “bourgeois home”).

If you intend to work in a condominium or rent your lot for any person wishing to undertake an activity, please refer first to the regulations of the condominium.

In the case of tenancy, the landlord shall be liable vis-à-vis the council of trade unions but also the tenant if he is forced to stop its activity. The consequences can be serious in case of disputes.

top

Work on the units

You can conduct or any work in your private parts if they are not contrary to the regulations of the condominium and has no gene or disorder neighborhood.

Often, some jobs require the authorization of the trustee or the general assembly, which is why the golden rule before undertaking any change or intervention is to refer to the condominium rules.
It should be noted that in case of application for a building permit from the city hall, the authorization of the general meeting of owners will be required.

As regards bank loans, there are a multitude of insurance products with prices and conditions of services tailored to each case.

It is therefore necessary to clearly define the various guarantees that you can or you need to subscribe, depending on your status (owner, lessor).

Contract terms are often unclear, do not hesitate to explain in detail what you think is unclear. In addition, the insurance industry is a sector hyper-competitive intent, take the opportunity to create competition to your advantage.

I-The insurance of the owner of a house

When a house is insured at the time of sale, the buyer benefits from this insurance automatically. The seller must give you the insurance and you should contact the insurer to report the transaction.

You can insure your home and property against various risks: fire, water damage, theft, storms, explosions, natural disasters, attacks and acts of terrorism.

Note that insurance against fire hazards include a guarantee against the storms and their consequences (rain, hail …).

There is also a guarantee that ensures electrical damage to a malfunctioning electrical system and its consequences (provided the damage does not come from an absence or poor maintenance).

top

II-insurance of the owner of an apartment

Insurance of condominiums: Group Insurance

The trustee must sign on behalf of co-owners insurance for common parts (staircases, elevator …) and some of the units of apartments and their interiors: it’s insurance, which guarantees the fire risk , lightning, explosions, water damage, theft, natural disasters, terrorist attacks, acts of terrorism, storms, hail, snow.
It must provide a waiver to use that protects the owners responsible for a loss and the trustee against any recourse against the insurers themselves. A clause should state that the owners are considered the third between them.

Insurance of the apartment

If the insurance does not provide, you can cover yourself against different disasters: the damage you collateral insured against fire, lightning, theft, water damage, attacks … on your apartment and on your personal property, development and beautification.

top

III-insurance loans

Reminder: the assurances you offer credit institutions are not necessarily tailored to your situation, you do them well explained and choose the one that best suits you.

The guarantee against death, disability, incapacity for work “: The law does not subscribe to, but for credit institutions, it is often a prerequisite for obtaining the loan (9 loans of 10).

Guarantee “job loss”: It’s your job situation and the amount of borrowing against your assets, which will lead to your banker or not you require. However, it is increasingly sought.

These different interests have the advantage of providing some peace to the debtor as well as the establishment of credits. According to the conditions and limitations of each contract, they provide the vagaries of life. They may, for example, be decisive in case of incapacity for work due to accident or illness. Do not neglect them.

The I-tax on the purchase

Whenever a property changes ownership, the state receives a number of taxes and registration fees. The amount of such charges varies depending on the type of property purchased.

For new

The acquisition of a new home or in the future state of completion (on sale plan), or subject to an initial assignment month 5 years after completion, the estate is liable to VAT rate of 19.6% included in the sale price.

This explains the price difference between new and old. In return, he receives rights mutation reduced the rate of 0,615% based on its price excluding VAT (more than 2.5% of base).

Are in addition to transfer taxes acquisition costs (about 3%): payment of obligatory steps (patches, extracted from the cadastre, state mortgage) and pay the notary.

For the former

Investment in the former is very penalizing. It causes the payment of several taxes or transfer the benefit of local authorities.

They include a municipal tax equal to 1.20% of the selling price, a departmental tax varies from one department to another (about 3.6%). Or puncture overall about 4.8% to plus a levy fees for assessment and recovery of 2.50%, calculated on the amount of the tax department. Will also add the acquisition costs to be estimated at just under 10%.

top

II-tax resale: real estate gains

The Treasury requires a portion of the gain realized on the resale of a property, according to a calculation rather complicated. There are also many cases of exemption.

The capital gain from sale of property is the difference between purchase price and the resale market after patching. Thus the selling price is to remember the name on the deed, less the costs incurred by the seller (sales commissions, advertising fees, discharge of mortgage, property taxes additional).

The purchase price stipulated in the deed packages can be increased by 8% for acquisition costs, costs of expansion or renovation when they were not deducted from total income.

Finally to account for inflation, the purchase price is revalued using the INSEE index of variation in consumer prices.

Before being imposed, the capital gain so computed has two subtractions. It is first reduced by a discount of 5% per year of ownership (fractions of a year are neglected) beyond the second. After twenty two years of detention, the property is totally exempt from tax.

An allowance of 900 euros is then applied (11,500 euros in case of expropriation).
The capital gain is added to the total income of the seller when the sale occurs within two years after purchase.

Beyond that, the quotient system will apply. It involves adding a fifth of the total gains in overall income of the investor. The tax payable is then the additional tax received multiplied by five.

Example of calculation of surplus value

A property bought in 87 to 400 000 is updated in 96 to 545 600 euro (x1.24) and sold 650,000 euros 96.
The gain recognized is EUR 104 400 (650 000-545 000).
Abatement of detention: 31 320 euros (8-2 = 6 years x 5% = 30%)
Abatement: -6000 Euros
Taxable gain: 67 080 euros (104 400 to 31320 – 6000)
These 67 080 euros of capital gains are added to 1/5th of their amount, or 13,416 euros, the total income of the investor. Assuming that the additional 2000 euros generates additional tax, the exact amount to pay in taxes under the gain is 2000 euros x 5 = 10 000.

The real estate acquisition: while preparing its investment

Becoming a homeowner is often the dream of a lifetime.
Many reasons for this choice: security, independence, investment or establishment of a heritage to pass …

However, buying a property is often a long-term commitment as most properties are acquired through borrowing. Moreover, the sums involved do not allow any mistake, because the slightest negligence can turn the dream into a nightmare.

But it is clear that eventually, if the idea of ??a loan over 10 or 20 years does not scare you and if you took the time to prepare your project, you’ll win over as a classic rental you make an investment.