What are the different strategies in the acquisition of a second home ? How to finance the purchase of a second property (home, apartment, or other) that we actually want ? If you intend to soon buy a house in the Morbihanyou must know that there are likely three methods that have been proven : the financing of a secondary residence via the contraction of a real estate loan, financing a second home through the creation of a real Estate Company, and, to finish, the financing of a secondary residence with the savings. But which of these options is most compatible with your project ?
Financing a second home in purchasing real estate credit
Want to buy a second home ? If yes, be aware that purchase a real estate loan in order to take advantage of interest rates at the bottom is a strategy of acquiring a secondary residence of the current one. In all cases, the investor should not have recourse to the credit of real estate that while the overall rate of the mortgage is less than the return on the investment. In the case of a rental investment, we must therefore ensure that the amount of the pension received is higher than the monthly payment set by the bank or the organization of credits.
Also note that if you choose this option, the loan interest can only be deducted for tax purposes. Reflection is needed before buying a second home.
Financing a second home, using his savings
To finance the purchase of your second home and finally buy that house, you can also do a back on your life insurance contract, provided that the return is correct. For example, it is not appropriate to seek to finance a second home if your life insurance contract do not report a minimum, a good rule is to always look for the best leverage.
Rest in France, the vast majority of purchases of second homes are made by puncture on the savings. If you have savings, enjoy !
Financing a second home by creating a SCI
The Société Civile Immobilière (SCI) remains a legal tool routinely used to anticipate the transmission of a real estate property. This form of company is a simple way to distinguish between the power on the management of the patrimony of the right of ownership of the building, and this by means of units. The combination of the status of the manager and associate allows you to limit the rights of grantees on the management of the building and ensures a transmission serene. That said, if the secondary residence must be shared between several heirs, the fund issues or even latent conflicts could remain without a solution. Here again, it will be necessary to study well your different needs.
To conclude, the need to finance a second residence will never be the subject of an optimal decision on the plans mathematical and financial. All wealth management advisors would advise his client to put in place a credit, real estate and diversify the maximum savings in order to increase the promotion of the heritage. But beyond the research of the effect of leverage, and of the criteria and requirements to personal and family must also be taken into account.
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