Investment in a student residence
A wise investment
Investment in student residences has become an interesting investment because of the student housing crisis. Indeed, with barely more than 150,000 university housing for 2.2 million students , France is struggling to accommodate its students.
Insufficient government supply creates an imbalance between supply and demand.
The other factor that favors investment in student housing comes from the explosion in private rent prices and the level of collateral required by landlords.
Finding accommodation for a student without the parental surety is particularly difficult at least at an affordable price.
The benefits of investing
This type of investment gives the status of lessor furnished. The tax benefits depend on the status you choose.
- If you opt for the classic LMNP scheme, the activity comes under the BIC and not the property revenue, but in the end, you report almost no revenue.
- If you opt for the SCELLIER device (possible until 2012), you will benefit from a tax reduction of 25% over 9 years up to a limit of € 300,000.
On the other hand, the initial investment is lower than for traditional housing. One can easily find student residences for less than 60 000 €.
Finally, you recover the VAT of 19,60%.
Financing of the student residence
The financing of your rental investment will be carried out in a traditional manner with the same difficulties as for any tax exemption operation under the SCELLIER law. You will be able to compete with different banks and compare different mortgages.
Our advice: attention to the reassuring speeches of promoters, asset managers or all those who market this type of products and who present you the investment in a student residence as a simple savings operation.
This is a real estate investment first and foremost and like any real estate investment, the choice of the developer as that of the choice of residence is essential.