in the European Capitals?
Rental investment in Europe:
The organization and management of a real estate asset always faces the same problems: where and how to use your money to save it, to increase the amount of it and to transfer it safely?
Real estate is an investment that helps build sustainable capital. Apart from the potential for added value on resale, it allows you to supplement your income or prepare for retirement. Real estate investment remains one of the safest and most profitable investments today. In addition, becoming an owner allows you to build up a transferable asset.
Several criteria must be taken into account to select the investment that best suits the investor's profile. It is necessary to establish the ideal budget to invest, to judge the advantages, to measure the risks, to know the applicable taxation and to define the duration of the investment, without forgetting the emotional aspects for the investor.
Today, the real estate market offers many possibilities for rental investments, thus making it possible to build up or diversify your assets, but also to secure additional income.
These investments offer a certain security but are highly regulated and impose many restrictions on the investor (holding period to be respected, threshold for the income of the tenants, quality of construction imposed, etc).
Investors are generally motivated by attractive tax systems but put aside the quality of construction, the potential value of the property for resale, the location of the building and more generally the needs to build a real long-term investment.
You just have to widen your field of vision on the different possibilities of real estate investments and to cross borders to benefit from additional advantages. We must therefore be able to move towards a stable, secure market, offering investment guarantees, profitable and suitable. Through the variety of environments, economies, tax and legal rules, Europe offers a wide range of choices for each investor.
In addition to the diversification of wealth envisaged by any good manager, it opens up very interesting prospects for profitability. Very restrictive, the French real estate market for example can present limits unlike other more accessible markets where the yields are higher, the tax constraints less important and the evolution of capital faster.
On the other hand, turning to markets outside France and especially in Europe to invest often escapes the notice of wealth managers (CGP) and investors. Why ?
There are several reasons :
A lack of knowledge of the markets outside the borders.
The difficulty of managing your assets abroad: geographic distance, different real estate rules, complex taxation, etc.
A lack of suitable structures allowing access to this type of investment: The majority of professionals (bankers, real estate agents, developers ...) will seek to sell the products on which they are paid directly or indirectly. As for independent wealth managers, you should know that it is almost impossible for them to profit from a purely advisory activity in this area. Only certain very wealthy clients (assets over 15 million euros) can remunerate a wealth advisor enough for him to advise him without receiving remuneration from commissions on the products sold.
However, the opening of European markets is a real boon for French investors wishing to diversify and optimize their assets.
Berlin, Lisbon, Budapest,… so many capitals, each with different wealth, economic or tax advantages, thus opening up the real estate investment market to each investor profile: security, profitability, tax advantages and medium-term wealth valuation .
As in Paris and London several years ago, the city centers of capitals such as Berlin, Lisbon, Budapest and Krakow are experiencing a phenomenon of urbanization and gentrification of the population: demand is increasing and the prices go up.
In addition to a very increased demand for rentals in city centers, this is where we find the most authentic, best maintained and most beautiful architecture, allowing the investor to build up an asset of quality.
Even if London and Paris remain cities where rental investment is attractive, entry prices are high and the increase in invested capital is slower.
In the spirit of opening up real estate investment on a European scale, STORY'S offers full support for investment in the city centers of European capitals while adapting its advice and guiding you according to your needs .
The typical investments that STORY'S offers adapt to your investor profile. For example, the city of Budapest is currently enjoying great success. The latest operations carried out offer a net and after-tax rate of return between 4.5 and 6% in quality real estate (parquet, molding, fireplace, high ceilings, etc.). In addition, the tax advantages linked to Hungary are numerous: the non-double taxation agreement with most of the countries influences rental income and real estate capital gain.
On the other hand, notaries are preparing for the opening of markets in Europe and are making available a website reminding them of the legal rules and the real estate acquisition processes specific to each member of the European community.
Morgan Bonin - Partner - Story's International