Whether in new, old or through SCPI, buying bare ownership of real estate assets is a study solution to have future retirement income without increasing its taxation.
Real estate is an important pillar for all those who want to prepare for retirement. In its traditional form (acquisition of a residential property for the purpose of renting it out, vacant or furnished), this type of investment can create an additional tax burden. Realized in pure ownership, it offers many benefits, and not just in terms of taxes.
Bare possession is part of dismemberment. This legal act makes it possible to divide the full ownership of property into two separate parts: mere possession and usufruct. Within the framework of the temporary division of property rights, the transaction for the investor consists in buying property and providing it for use to a third party (usufructuary) for a certain period, known from the signing of the contract. (unlike a life annuity where the duration is random). During the entire period of dismemberment, the bare owner refuses to use his property. He may neither live in it, nor sell it, nor lease it, but the usufructuary has the right of use. The bare owner regains full ownership at the end of the contract at no additional cost.
The investor receives a significant discount on the purchase price of the property.
The first advantage of this type of long-term investment: whether it is a property in an existing building or in a new program, the investor receives a significant discount on the purchase price of the property (on the order of 25% to 50%). . “Variable depending on the duration of the usufruct, it is equivalent to the amount of net rent that the investor could receive during the period of dismemberment if he were the full owner. This discount, while providing greater security for the investor, also means, de facto, savings that decrease if he finances his purchase on credit,” explains Thomas Abinal, CEO and co-founder of Monetivia, a real estate and asset engineering company.
The bare owner is not responsible for income tax and social security contributions
In addition, the purchase of a property offers the investor a complete absence of management restrictions (unpaid debts, search for tenants, etc.). “The usufruct is awarded for fifteen to twenty years to a social landowner who takes care of the collection of rent and takes care of the maintenance, works, fees, and restoration of the property at the end of the investment period,” clarifies Nicolas de Bussy, Deputy General Manager of Perl, Head of the Division of Property Dismemberment . This type of investment is beneficial from a tax point of view. “Because the mere owner does not receive any rent during the entire period, he is not responsible for income tax and social security contributions, and it is the usufructuary who usually pays all taxes, in particular the property tax,” says Céline Brevard-Nolle. , managing director of iPlus by Consultim. The investor is not subject to real estate tax (IFI) during the entire period of temporary use. “Naked property is ideal for those with a high marginal tax rate because the rent charged at the time of entry in the form of a price reduction is not subject to property tax,” warns Thomas Abinal.
Another solution is to buy the SCPI shares in unassembled form. “Not only is the initial investment more accessible and allows you to position yourself for shorter periods than through direct real estate, but it results in owning a diversified portfolio with segregated rental risks,” notes Matilde Krieger, CEO of Novaxia Investissement.
Also read. Investing in real estate: how to invest differently
New or old: where to invest?
If a property investor is primarily concerned with the strategic location of his property (a dynamic area with high rental demand), he must also examine the typology of the dissected property. In addition to more attractive prices per square meter and more offers in the city center, old properties allow the user to move in immediately. On the contrary, a purchase in the top nine involves the purchase of housing at a higher price and is sold in future readiness (Vefa). Thus, the partitioning period starts only from the date of delivery of the program. “The choice of ownership in new construction offers, above all, a guarantee of ownership of the property, which meets the current regulatory requirements in terms of heat and sound, and also ensures the comfort of new buildings (parking, elevator, etc.) . Not to mention a ten-year guarantee covering any damage affecting the construction, or even reduced notary fees,” says Celine Brevart-Nollet. “Another asset, for both new and old, is the liquidity of the investment. The buyer can resell the ownership of their property at any time without losing tax and property benefits,” adds Nicolas de Bucy.