The rental investment represents an interesting financial way to make your savings profitable. As is the case for any property acquisition, you can obtain one or more real estate loans taken out with a bank. The first phase to invest in stone is the choice of the place where you want to invest as well as the nature of the housing. It is also necessary to carry out a simulation of a rental loan and to find out about the rates of real estate loan of the rental investment.
Details of the property loan for rental investment
Housing loans are overshadowed by newer schemes such as some state aid. These may concern the social rental loan and the intermediate rental loan. The advantage with this State aid is that it allows the borrower to benefit from an interest rate indexed to the interest on the Livret A passbook savings account. Thus, the family SCI or the individual investor can benefit from the reduced VAT rate of 5,5 % on the acquisition of property. The real estate investor is also entitled to a 25-year exemption from property tax when it comes to manufacturing a rental property.
In order to benefit from this means of income tax exemption, the rental period specified in the agreement signed with the State must be respected. This income tax reduction tool is granted when the PLS represents at least 50 % of the amount to be paid.
How to calculate the marginal tax bracket?
As the income tax scale is progressive, this means that each taxable income must be divided into different brackets. Each bracket has a different tax rate. In order to calculate the marginal tax bracket or IMR, it is necessary to know the applicable tax rate whose upper part of income is the last bracket reached. Determine the marginal tax rate by taking taxable income N, net of expenses, and dividing it by the number of units. All that remains to be done is to apply the progressive tax scale to the result, which is defined by bracket.
Borrowing money to invest in rental property
Taking out a mortgage loan to buy a rental property is quite possible by contacting the banks. Financial institutions grant a loan for rental investment and even without personal contribution. Although the debt ratio must not exceed 33%, not all banks apply the same calculation methods.
Real estate loans can be of different categories: amortizable, bullet, variable or fixed rate. To evaluate the debt ratio for a rental property loan, you must first take into account the net rent and then evaluate the future debt ratio.