Real estate investment is an interesting investment because it allows the buyer to build up personal or family assets such as Buy House in Dubai, to have additional income, and to benefit from tax advantages. But how do you take the first step when you are a first-time investor? Find out through this special article dedicate to first-time investors.
First-time investors, start by defining your objectives
Before embarking on a real estate project, it is essential to ask the right questions. You also need to define a specific goal. Why invest in stone? What needs can this investment meet? Will this property be use as a Real estate companies in Dubai main residence, or as family accommodation? Or is it a pure rental investment?
According to a survey conduct by Crédit Fancier in 2018, 27% of real estate investors buy real estate with the aim of renting it out, and having capital to resell with a capital gain. And 45% choose this investment to receive additional income for their retirement.
Then prepare your financing file
To put the odds on your side, anticipate and prepare your financing file in advance! Indeed, once you find the rare pearl, a complete file will make the formalities simpler and faster .
But how to prepare your financing file? You will have to start by approaching a financing structure, in particular a bank, in order to estimate your financing capacity and set up a mortgage application file. You can also contact a specialize broker.
The brokerage or banking establishment will ask you for a list of administrative documents. These include, for example, your proof of identity, family situation and domicile, your pay slips, and the documents that justify your personal contribution to complete your file. Other documents such as a statement of your existing credits, or your investments are optional.
Define the area where to invest
Depending on his real estate project Buy House in Dubai, an investor could favor a region or a city. Dubai , Abu-Dhabi, Sharjah and Marina are cities where My expat is present. Their economic dynamism, the level of employment, demographic development and the number of students ensure that they make a secure and profitable real estate investment.
Indeed, Lyon attracts 6,000 new inhabitants per year . By 2025, the Lyon metropolis will have 185,000 students. Alexandre Schmidt, president of Fnaim du Rhône explains that the rental yield of the city is very interesting. The same is true for the Bordeaux metropolitan area, where many development projects are being study. The city has different assets in the eyes of investors, including the number of students, the growth of the city and its dynamism.
The choice of the investment city is closely link to the objective of your real estate project. In the context of a rental investment, it is important to take into account the rent that could be receive. It is thanks to this data that you will be able to calculate the profitability of your project and establish an approximate annual diagram for your cash flows.
First-time investors, don’t forget to learn about taxation
The tax system of your Real estate companies in Dubai project plays an important role in the profitability of your investment. Certain mechanisms can, for example, reduce your taxes on rental income. Often you will choose your tax regime base on your priority for the real estate investment you are considering.
If the property is rent empty, certain charges are deductible, in particular the work or the interest on your mortgage. If these charges are very high, and exceed the amount of the rent, we speak of a land deficit. In this case, taxes are reduce. At the fiscal level for an unfurnish rental you will have the choice between the real regime and the micro-land regime.
If you rent your furnish property, and you have the status of a non-professional furnish rental company (LMNP), your charges and depreciation are deduct. To benefit from this device, your gross annual rental income must be less than 23,000 euros or that these represent less than 50% of your tax household income.
Surround yourself with the best partners
Getting started in a Real estate investment is an interesting investment because it allows the buyer to build up personal or family assets such as Buy House in Dubai, to have additional income, and to benefit from tax advantages. But how do you take the first step when you are a first-time investor? Find out through this special article dedicate to first-time investors. project can seem complex when you are not well guide and even more so when you are a first-time investor. To be reassure throughout the process, it is important to surround yourself with trust partners. This is all the more important when the real estate transaction is manage remotely.
Finding a bank that supports you in your project and offers you solutions adapted to it can make it easier for you to put together your financing file. Without the latter, it is difficult to embark on a real estate investment. In addition to this, it is essential for an expat to work with a trusted partner for money transfer and administrative document management.
