Tax exemption through the law has evolved in 2018. Henceforth, to have access to the investor must exclusively position itself on a rental purchase in a densely populated area. Which implies the big French agglomerations. Despite this geographical change, the impact of an acquisition in law is very interesting to reduce its taxation. To benefit from it in the best conditions, we will see that according to the situations encountered, taxpayers have every interest in requesting a redemption of credits upstream.
Loan buyback: the key to new borrowing capacity
Using a loan consolidation is not a trivial operation. Financial restructuring helps to sustainably remediate a household’s banking expenses. Restructuring its credits is above all simplifying its budget. In fact, for households that have accumulated several Ayeshaments (real estate loans, car loans, loans, hard loans or even revolving loans), managing the family budget becomes difficult.
Credit buy-out organizations provide an opportunity for indebted households to consolidate all their debts into a single global loan. It may also be a partial loan buy-back, which means that the debtor will retain one or more of the previous loans in the same condition. It is the goodwill of borrowers who have been informed beforehand by the advice of their loan buyback broker. Indeed, one or more loans may be retained provided that they have an interest for the borrowers.
Loan repurchase is also an effective way of easing its borrowing burden. Thus institutions specialized in banking have the opportunity to propose an extension of the repayment period. Unlike traditional banks that are limited when it comes to redeveloping the credits of an individual. This lengthening is synonymous with lowering the debt pressure.
The investment, a patrimonial debt for tax exemption
The restructuring of credits thus gives access to a new debt capacity that tax households can eventually use to invest in real estate tax exemption. The debt associated with a property purchase in law is a major asset for French households. Through a tax reduction mechanism, the investor will see his income tax reduced significantly. He may deduct from his income up to 21% of the price of the property, for a rental commitment of 12 years. This significant tax benefit is spread over a period identical to that of the rental period (always within the maximum 12-year limit).
Especially as the assets of this real estate project does not stop there. Borrowers who have resorted to the repurchase of credit often remain marked by this operation and then develop an aversion to credits. It should be remembered that the rental project in law is of a patrimonial nature unlike a consumer credit. This means that the borrower in repaying his loan will build a property portfolio. In a way, this type of credit is tantamount to “forced savings”. Using a new borrowing capacity to tax in real estate therefore comes in a budget management “good father”. Although care must be taken to maintain sufficient room for maneuver for a cash savings effort. This cash envelope will be essential in case of unforeseen circumstances requiring an exceptional expense (car breakdown, temporary incapacity for work, etc.).
In the end, the redemption of credits is an option to be favored by future investors in law indebted in advance. This process is not just for over-indebted people. In a search for budget comfort, borrowers have every interest in considering restructuring their debts. In view of the unprecedented economic situation, the interest rates floor at which banks, it’s time to enjoy a review of its loans. At the same time, the investment offers generous benefits and is an efficient way to gradually prepare for retirement.