Various real estate investments are available today. Investing is safe as long as you do it where it matters. The big trend is then moving towards investment in wine groups. It also allows for a bit of a break from traditional investments such as real estate, but also comes with certain benefits. It must be said that real estate investments are starting to saturate and if you already have so many, diversify. Who wouldn’t want to be the owner of famous vines without worrying about their exploitation and profiting from their interests? This is what investment in vineyard land offers. To get the most out of it, here’s everything you need to know before you invest.
What does the wine group consist of?
Groupement Foncier Viticole can be considered SCPI (Civil Real Estate Investment Company). Indeed, its main purpose is to allow individuals to become owners of vineyards. Thus, they invest but do not interfere with the operation, management or marketing of the product. All they do is invest their shares and earn interest as a result. To do this, the operation must take into account three actors. On the one hand, there is a management company that manages, searches for an operator and distributes income. Then there are investors or individuals, as mentioned above, who provide the funds. And finally, there is an operator responsible for ensuring that the property is profitable. Therefore, it is the latter who cultivates the land, harvests the crop, turns it into wine and sells it. As an owner/partner, the investor receives certain tax benefits, income proportionate to his contribution, and benefits in kind.
Diversified portfolio for greater profitability
Like SCPI, GFVs are a good asset. After all, compared, for example, with classic real estate investments, it is much more affordable and easier. To make a good direct investment in real estate, you must find a property, buy it, and find tenants to make it profitable. This requires time or the cooperation of expert agencies, as well as significant investments. Against all this, ground teams make it easy. It is they who invest in real estate, while an individual invests only in securities. Therefore, it is not necessary to wait for the availability of significant funds in order to become an owner. The management company takes care of all the steps so that the investor only has to regularly return his market share. This type of legacy poses little risk as there are no maintenance or work costs. However, it can bring a lot depending on your input. In addition, investing in a vineyard means being able to take advantage of reduced prices for your vineyard produce.
Take advantage of some tax breaks
If investing in a vineyard is so attractive, beyond the easy profits, it’s because it’s very attractive from a tax standpoint. If you are investing in GFV, it must be said that it is primarily about generating income. However, the latter are taxed like any other income. The advantage here is that the investor has the opportunity to receive a one-time allowance in the micro-earth regime. In the same way, in real mode, he can, on the basis of certain decisions, reduce his tax base. In addition, from the point of view of inheritance and gift, wine-growing lands entitle to certain partial exceptions. Finally, depending on the lease regime established by the management company, the investor can also take advantage of income tax benefits. In addition to interesting and diversifying investments, GFV offers the investor tax opportunities. In the long run, this represents an undeniable savings, allowing those who want to reinvest faster.