With the decline in the growth of the global economy, the housing market, especially in France, is expected to grow by at least 5% by 2027. This growth is expected to give room for the big players in the country to take advantage of low-income earners by putting their small market properties up for sale. But as the economy bites down hard on the housing market, realtors are now putting their property for sale in cap-d’ail france to survive the harsh economy.
Reasons Why You Must Invest In The Housing Market
Real estate investment is considered one of the wisest forms of investment today. The market is so profitable that you don’t only make money from selling land and houses, but you also make money from renting apartments. In areas close to Monaco, one of France’s major and most expensive cities, real estate agents tend to benefit from two different markets. These rental markets are mostly differentiated between the two major seasons in the country.
During the summer, the rental markets tend to perform well due to the high number of people who visit the city for the holidays. During the off-season, which is winter, the rental market is usually steady with few volatilities in the price. These steady prices experienced during the off-season mostly result from house hunters looking for a long-term housing plan.
It has been reported that it only takes 2 weeks out of the 10 weeks of summer for all apartments to be rented out in Monaco, pushing rental yields to as high as 6-10%.
If there is something most people have learned, especially during the Covid-19 lockdown, is that no one is truly financially secure. Most people during that period had to learn the hard way that keeping money in the banks is in no way a form of investment. When you own a real estate asset, you know you have a worthy investment. There are always ups and downs in the real estate market, but the beauty of the market is that it always bounces back in the long run.
The need to attain financial freedom is why real estate assets are in high demand from residents of Monaco. Most of these people are using the market as a way to build their retirement funds. Whether you are saving for retirement or looking to make extra income to attain financial security, real estate investment remains the best.
One very interesting fact about investing in the housing market is the amount of tax you get to write off. Unlike bonds and stocks, where you can only waive off capital taxes when you sell your assets below your buying price, real estate investment allows you to write off taxes even when you make huge profits.
As a real estate investor, you can write off taxes like,
- The interest paid on mortgage loans
- Cost of maintenance
- Depreciation Value (spread out over 28 years)
- House owner insurance
- Housing taxes
It is important to seek the advice of a housing legal practitioner before writing off any tax so as not to get into trouble with your local authority.
Stocks and bonds might seem attractive in the short run, but if you are looking to make a decent return on your investment, real estate investing offers you the opportunity to triple or more your investment in the long run with a much lower risk.