Overview of financial and real estate investments: how to choose?

The april 17, 2020

It's not easy to navigate the jungle of financial and real estate investments, is it? Don't panic, the Wealth A7 team has worked on a synthetic presentation to simplify your life and guide you in choosing the solution(s) that suit you best! Because many parameters must be taken into account when choosing a financial or real estate solution and each person has a different profile, objectives, life plans and investment horizon, our experts have specially developed for you various comparative tables that will allow you to see more clearly.

FINANCIAL INVESTMENTS:

Wealth A7 has compared for you the different financial investments according to the 4 main objectives generally sought by investors: savings, preparation for retirement, obtaining additional income, tax exemption.

Click here to consult our summary tables on financial products (excluding tax exemption)

How to choose between a French or Luxembourg life insurance, a PEA, a securities account? All of these products allow you to grow your savings over the more or less long term, each has its own specificities, find out which ones with our summary tables!

What you must remember :

- Do you want to invest in company shares without any geographic restriction? So prefer the securities account! Likewise, if you want to invest in stocks without having your money blocked for 5 years, the securities account is for you.

- If, on the other hand, patience is one of your qualities but you suffer from an acute tax phobia, the PEA is your best ally since all capital gains and interest generated are exempt from income tax after 5 years.

- Do you prefer to save and develop capital over the long term without any blocking period for your funds and are not a fan of shares held directly? The life insurance policy should fill you up!

- Are you convinced that life insurance is THE solution you need, but are you worried about the potential bankruptcy of some French banks? Take a closer look at the Luxembourg life insurance contract, at the top level in terms of investor protection!

Anticipating your retirement is fundamental, it is not the recent news on pension reform that will make us say the opposite! PERP and PERin are specifically dedicated to this issue and good news, they also reduce your tax burden! Let's see what makes these two products different and how to choose.

What you must remember :

- If you want to prepare for your retirement by benefiting from an immediate tax reduction and you plan to acquire your main residence (and think you need all or part of these funds), the PERin will best meet your expectations .

- On the other hand, in all other cases the PERP will offer you a more attractive tax on exit and therefore remains more advantageous (hurry, its time is running out since it will be closed for sale on October 1, 2020!).

Does the prospect of receiving regular rents make you happy, but you hate rental management? Is betting everything on one apartment risky and you would prefer not to put all your eggs in one basket? Then the shares of SCPI or OPCI have a high probability of bringing you satisfaction. How to choose between the two? To find out, take a look at our comparison table by clicking on the link at the beginning of the article.

What you must remember:

- If you intend to use the leverage effect of credit, SCPI shares will allow you to do so, unlike OPCI.

- If you want to hold units directly (without going through life insurance) and liquidity (possibility of recovering your money) is an important aspect for you, prefer OPCI units because they have a unit more cash.

- You do not necessarily need additional income immediately and prefer to grow the rents received in order to derive the maximum benefit? The life insurance contract will perfectly meet this objective! Indeed, it is possible to acquire SCPI or OPCI units through life insurance, the income will then be reinvested in new units (or other fund (s) of your choice). Also think about the SCI (Société Civile Immobilière) which is only accessible through life insurance!

- Does the idea of ​​receiving immediate additional income enchant you? Instead, turn to the German OPCI or SCPI whose income tax is much softer than that applied to the income of French SCPI.

Are you tired of watching helplessly every year your income tax increase? To stop suffering, one of the solutions below will make you happy, discover them by clicking on the link below:

Click here to consult our summary tables on tax exemption products

What you must remember :

- The Girardin industrial device is for you if you do not like getting involved and want to eliminate all or part of your income tax!

- Turn instead to FCPI shares if you are convinced that innovative companies have a strong potential for revaluation and you want to provide them with your support in the long term (holding the shares for at least 5 years). In return for your help, get an 18% tax reduction on the amount of your investment.

- If taking part in the development of young European companies is in your eyes a noble cause, then the shares of FIP will delight you (conservation of the shares for at least 5 years). Take a particular interest in Corsican or Overseas FIPs which will offer you a tax reduction of 38% of the amount invested (instead of 18% for traditional FIPs).

- Do you want to reduce your taxes and also receive property income from one or more bare rented properties? Then the SCPI land deficit will undoubtedly make you happy!

- Would you like to benefit from the Pinel system in order to reduce your income tax but do not have the time or the inclination to take care of rental management? The SCPI Pinel will be perfect for you!

REAL ESTATE PRODUCTS:

Like the majority of French people, do you think investing in stone is an excellent solution because of its stability and yield? But did you know that there are many ways to invest in real estate? Find out what is yours:

Click here to consult our summary tables on real estate investment

Old real estate has undeniable advantages, particularly because of its charm and its location, generally in the city center. The renovation of old property will allow you to develop your wealth and benefit from a welcome reduction in your tax.

What you must remember:

- If you are already the owner of one or more real estate that you rent unfurnished, the land deficit device will do wonders on the amount of your income tax by erasing all or part of your taxable property income or even your activity income!

- If you are heavily taxed, the Malraux or Historical Monuments measures will put a smile on your face by considerably reducing your taxation. You will also become the happy owner of an exceptional property!

- For its part, the Denormandie scheme is aimed at people with a smaller budget and who wish to benefit from a tax reduction in the medium / long term (6 to 12 years).

New real estate seduces you with its ultra-functional plans, modern materials and buildings that meet the latest energy standards? New real estate yes, but in what form?

What you must remember:

- Do you want to reduce your taxes in the medium / long term (6 to 12 years) and rental management does not scare you? Then the acquisition of a property under the Pinel device has many chances to pique your curiosity. Be careful, however, to respect certain principles in order to ensure the success of the operation; we recommend that you contact a wealth management professional.

- Acquiring bare ownership of a property is an excellent solution if your goal is to buy a property below its market value and you have no problem with not collecting rents for a few years.

- Are you convinced by new real estate and want to put your bags there? Know that it is also possible to acquire your ultra-modern main residence, contact us to find the property of your dreams!

Acquiring a property in a service residence (student, senior, EPHAD, business, etc.) will allow you to access the status of Non-Professional Furnished Rental (LMNP), which is extremely tax-efficient.

What you must remember:

- Do you regularly think about investing in real estate but do not dare to take the plunge because of rental management which you consider too time-consuming and the tax on property income which you find too dissuasive? Invest in a good in a service residence and benefit from the advantages of real estate without suffering the disadvantages!

- Is it more important to you to receive regular non-taxed additional income than to reduce your tax burden? The LMNP device will satisfy you!

- Conversely, investing in a furnished residence interests you strongly, but would you prefer to obtain a tax reduction? The LMNP will meet your expectations; all you need to do is opt for the Censi-Bouvard option.

DIVERSIFICATION PRODUCTS:

Investing in a diversification product represents less than 10% of your overall wealth. It allows you to obtain a tax advantage or the realization of a capital gain, but above all, the diversification product corresponds to your convictions and is based on artistic, cultural or local assets. Thus, several products are likely to coincide with your values:

Through a leasing or loan system, you reduce the taxation of your company (IS) or yours (IR or liberal profession) each year and make your employees benefit from the presence of a work of art, customers… At the end of the operation, you will be able to personally buy back the work at a symbolic price. Each situation being unique, we invite you to ask us for a personalized simulation in order to concretely measure the benefits of such an investment.

This heritage investment par excellence allows you to make your contribution to the preservation of forests in France. You would also get a tax reduction of 18% of the amount invested as long as you keep the units for at least 8 years. It is possible to invest in a GFF up to a maximum of € 5,700 for a single person and € 11,400 for a married couple. In terms of inheritance, 75% of the value of the shares is exempt from free transfer tax. This asset is also exempt from real estate wealth tax (IFI).

In line with the previous investment, the GFV offers you the opportunity to participate in the development and operation of vineyards, an integral part of the French cultural and gastronomic heritage. France is indeed the second largest producer of wine in the world, behind Italy and the price of a hectare of vines is constantly increasing, which gives hope for an interesting gain in the long term. Regarding taxation, you benefit from a tax reduction of 18% of the amount paid (maximum € 9,000 for a single person and € 18,000 for a couple), a total exemption from IFI and a reduction of 75 % in case of donation or inheritance up to € 300,000 (50% beyond).

Wealth A7 offers you these exceptional products to diversify your assets by combining the useful with the pleasant!


If you are interested in one of the solutions presented above, ask our financial and wealth experts for your personalized study, always by your side to bring your desires to life!

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Article by : Orane TREHET

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