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Do you like to relax in a pleasant and peaceful setting, do you like to meet your family or friends in a warm and friendly place where you can enjoy festive meals and leisure activities? Then you are surely part of the French who dream of buying a second home. Discover all the right questions to ask yourself before buying a second home.
Buying a primary residence is an important goal in the lives of many French people. On average, 58% of households own their primary residence, and this figure increases with age. But once you have been lucky enough to own your primary residence, the question of acquiring a second home often arises. According to a study by INSEE, France has more than 3.6 million second homes, or 10% of the total number of homes, and this figure has risen sharply over the past decade. Discover four good reasons to get started. And if you want to know more about the pitfalls to keep in mind when buying a second home in retirement, be sure to check out this article.
There are many reasons, but what attracts first and foremost is to be able to get away at any time, to change your mind, by staying comfortably in a property that is your own. Are you tired of having to book a hotel, a bed and breakfast, a house on Airbnb? You are anxious at the idea of not finding a place to stay for your next vacation, or that the accommodation does not correspond to your expectations and needs. With a second home, no more stress! You are free to organize your vacations as you wish, and to arrange your accommodation to make you feel at home, comfortably.
Owning a second home also means being able to gather your family and friends in a warm place that will quickly become the home base of your entourage. What could be more precious than to be together to spend happy moments, which will leave indelible memories in the memories of the elders and the youngest?
Do you want to pass on a property to your children and grandchildren? By buying a second home, you are adding to your estate a property that will quickly become a landmark for your children and grandchildren, a place that will be passed on from generation to generation. Find out about the impact on the tax system when you inherit, so that you can make a decision with peace of mind.
Investing in real estate remains a safe haven. With the recent uncertainties on the financial markets, investing in the stock market or in life insurance can be a worrying experience for many savers. In these circumstances, investing in real estate can be a wise choice and a guarantee of serenity.
In addition, when you invest in real estate, you can benefit from bank leverage. What is the leverage effect? In concrete terms, the acquisition of a property can be accompanied by a bank loan, which allows you to bring in a limited amount of capital and have the bank finance the rest.
Finally, if you want your investment to bring you income every month, you can also rent your second home in your absence. This way, by receiving rental income when you are not occupying your second home, you will be able to more easily pay the expenses associated with the acquisition, such as the bank loan, taxes or renovation work you wish to undertake.
But first, it's important to define your personal goals precisely. Do you simply want a new haven of peace? Or do you also want to earn rental income so that the financial investment remains reasonable?
Buying a residence is above all a purchase to be made with the heart! It is essential to feel good in this second home, and to have a real crush on the home you choose to spend your free time in. So mountain, sea, countryside, everything depends on your vacation habits and your favorite activities. Weekend, vacation, or both?
Do you want to get away from it all every weekend, get away from the hustle and bustle of the city, and take your mind off your professional activity? In this case, it may be wise to opt for a second home that is accessible on weekends. But beware of the travel time. To make sure you can enjoy your second home as often as you like, without the commute becoming a chore, you'll have to be very careful about the average time spent in transit. Did you know that 48% of second homes in wealthy households are 3 hours or more away from the owner's primary residence? You can also opt for a residence located near a TGV station, especially for people living in the Ile de France region, for whom many cities are now accessible in 1h30 by TGV from Paris.
Some departments are particularly sought after. According to INSEE, most second homes are located on the coast (40%) or at altitude (16%). On the central Atlantic coast (from Morbihan to Landes) and the Mediterranean coast (particularly in Corsica), second homes can represent a significant portion of the housing stock.
Over time, various protective measures have been put in place to reduce the tax burden on primary residences. For example, in the event of the sale of one's principal residence, the capital gain is exempt from taxes. In the same way, the progressive abolition of the housing tax has been put in place for principal residences.
Taxation is more important on primary residences. Thus, owning a second home will make you eligible for the property tax, the household waste removal tax and the housing tax. Please note that the gradual abolition of the taxe d'habitation does not apply to secondary residences! Would you like to know more about the calculation of the council tax for your second home? Do not hesitate to click here.
If one day you decide to sell your second home, you will have to pay a capital gains tax. This tax is based on the difference between the price at which you sell the property and the price at which you originally purchased it. The tax rate is 19% for income tax, and 17.2% for social security contributions, for a total of 36.20%. The amount to be paid can therefore be very important, it is essential to have anticipated it well. On the other hand, a discount linked to the length of ownership can be applied and reduce the bill.
Be vigilant and take into consideration all the tax charges that will weigh on your main residence, to be sure to enjoy it with peace of mind. Anticipating is living serenely!
Buying a second home is an important financial investment, we invite you to study all the possible financing possibilities so that this investment is optimized. If you have some savings, or have recently received an inheritance, you can use this amount to finance the property. However, as with any real estate investment, you can often take out a loan with a bank, which will allow you to increase the amount available for your purchase.
Take advice from your banker to obtain an estimate of your borrowing capacity, according to your income and the expenses you have in your budget every month. Don't hesitate to ask for several quotes because banks can offer significantly different interest rate conditions depending on your profile.
Pour le financement d’une résidence secondaire, vous pouvez aussi opter pour une solution innovante qui consiste à utiliser le patrimoine immobilier de votre résidence principale afin d’obtenir des liquidités. La société Dillan par exemple vous permet de monétiser votre patrimoine immobilier, et d’obtenir le capital financier qu’il vous faut pour acheter une résidence secondaire. Concrètement, vous vendez à Dillan tout ou partie de votre résidence principale, tout en continuant d’y vivre comme avant, avec la somme d'argent dont vous avez réellement besoin pour acquérir votre résidence secondaire. Faites une simulation!
