Damien Baron, Lyon expert in wealth management. / DR
If retirement is synonymous with a long vacation for many Lyonnais, it also takes on another reality: a loss of income. Supplementing your resources with your real estate assets turns out to be a winning strategy, as long as the housing is well placed, that you control the taxation and that you anticipate.
The earlier you invest, the more you accumulate a diversified wealth that you can benefit from when you retire. The first asset transaction to be carried out is the purchase of your main residence, then to turn to other investments.
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Favor furnished rentals
The first investment to be made, according to the asset manager, is an investment in LMNP (non-professional furnished rental company). “With furnished rentals, we rent 20% more expensive and the rental vacancy is almost zero in Lyon”, details Damien Baron. Rental income is taxed either under the micro-BIC regime (only half of the income is taxed), or under the real regime (taxable profit is calculated by subtracting the charges from the income). “But above all, with furnished rentals, there is no rent ceiling, no rental period commitment as with the Pinel system. It is the first vector of wealth creation. ”
Focus on the land deficit
“By investing in the old, it is the other lever of interesting heritage development”, estimates Damien Baron. In the context of the rental of an unfurnished property, if at the end of the year the rents received are lower than the charges (such as renovation work) you will find yourself in a situation of land deficit. You can charge the amount of the deficit against your property income for up to ten years. “That is to say that at the time of your declaration of property income, you erase this income and reduce your taxation”, explains the manager of Lyon’s assets.
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Diversify with the “paper” stone
We talk a lot about SCPI, but Damien Baron sees it as a rather risky investment, without guarantee. “Entrance fees are also high. I rather advise specialized professional funds (FPS). They make it possible to invest in real estate assets through vehicles other than SCPI or OPCI. This allows access to real estate development or property trading operations, consistent with current needs. ” This is not the case with SCPI, which is not very liquid. “With this kind of investment, we work with companies that buy buildings, renovate them, rent them 100% and resell them.” In return, FPS are accessible to individuals able to invest at least 100,000 €. “It is a good lever for asset diversification for retirees with good financial capacities.”