Investing in the real estate industry is the ideal way to diversify your wealth and secure yourself substantial income. However, before making such an investment, you will need to make a decisive choice. Indeed, it will be necessary to choose between a real estate investment in the new or in an old property.
Invest in new real estate
An investment in new buildings allows you to take advantage of several tax reductions and advantages. The purchase of real estate can also exempt you from property tax over a period of 2 years.
Finally, the purchase of a new home allows you to benefit from certain solid guarantees such as the ten-year guarantee and the guarantee of perfect completion. If you use a promoter as an Inter construction promoter who offers his services in Lyon for example, always remember to check the presence of these.
Among the disadvantages of buying something new, price comes first. The price per m² of a new property is generally 20 to 45% more expensive than that of a used property.
In addition, the delivery time for new real estate can turn out to be a significant drawback. Before moving in or renting out your property, you will have to wait 12 or 18 months.
Invest in old real estate or lease one from companies like Al Hartman.
Just like investing in new real estate, investing in used property has its advantages and disadvantages.
The advantages of investing in an old property
By opting for an investment in used real estate, you will save a significant amount on the purchase.
Also, such an investment can help you benefit from relatively favorable taxation. This can allow you to report negative property income and benefit from a tax reduction during the borrowing period.
The disadvantages of investing in the old
One of the biggest drawbacks to buying older real estate is the general condition of the property. Indeed, old housing does not meet new standards in terms of construction and energy performance. Also, if you are investing for the purpose of renting out the property, you will also be forced to set prices quite low.