Service residences: which can be of most service to you?

The may 05, 2020

Investing in a property located in a service residence is a solution that deserves your attention because of its many advantages.

You do not know what is the furnished rental in service residence? As its name suggests, a service residence has the particularity of offering its residents furnished accommodation associated with a range of services: from breakfast to the gym through the supply of linens, they can to be diverse and varied.

There are different types of residences, adapted to different types of occupants: student, tourist, senior or medical residence, there is something for everyone, and for all needs! The management is entirely taken care of by a professional operator, you do not take care of anything!

The interest for you, as the buyer of a property located in this type of residence, is also the access to a specific status: that of Non-Professional Furnished Rental Company (French 'LMNP').
The main advantage arising from this status, and not least, corresponds to the taxation applicable to the rental income that you will receive. Thanks to the accounting mechanism of depreciation, you will not pay tax on rents collected over a period of 20 to 25 years, the amount of depreciation on walls and furniture erasing your rental income! Rather interesting, isn't it?
Purchase in cash (like 60% of investors) or on credit, small (from 30,000 €) or big budget, everything is possible!

If the idea of ​​investing in a service residence appeals to you, you will have to choose between the various existing themes, you can count on our Wealth A7 experts to guide you in this choice. Here are their respective characteristics:

The student residence: it receives 70% of students. Driven by an extremely active market in the most student cities in France, the supply is far from covering the demand for housing. The student residence meets the criteria of a classic real estate investment: price per m², location, characteristics of the property. Care must of course be taken to select a residence located in the city or near university campuses, and give particular importance to public transport which must be nearby.

Senior residence: if there is no age limit for access to this type of residence, tenants are generally between 70 and 90 years old. These are independent people who wish to get closer to the city center and its amenities, regain social ties or leave a house that has become too heavy to maintain, while benefiting from the services at their disposal (hairdressing salon, medical support …). Like student residences, senior residences must have a privileged location.

The tourist residence: despite the crisis we are currently experiencing, France is the most visited country in the world and also the one in which its own inhabitants go most on vacation. If you are convinced of the attractiveness of France in cultural and tourist terms, you can choose to position yourself on a property located in a residence by the sea, in the mountains, in the city or in the countryside by taking of course account the tourist potential of the location.

Nursing home: investment in nursing home is more like a financial investment than a real estate investment. Indeed, the real estate characteristics are of little importance since it is the medical help which is sought here. The rooms in nursing homes are very popular and are in high demand. This asset is linked to a demographic problem and therefore ensures investors a total decorrelation from the economic situation.

We agree, the choice is not necessarily easy, each type of residence has its own advantages! As wealth management consulting professionals, at Wealth A7, we have our convictions. Our preference goes to student and senior residences which offer a high level of security to the investor. Indeed, the price per m² of housing is more or less at the same level as the price of old real estate and the residences are generally located in privileged areas - the conditions are therefore met for the realization of a capital gain on the long term. In addition, it is the assurance of easily and quickly re-renting your property in the event of the operator's possible failure. Even if the probability of such an event happening is low, our job is to anticipate and prepare for any eventuality. And for that, nothing like tangible real estate, meeting the criteria of a classic real estate investment!

If you are interested in investing in service residences, we invite you to consult our Wealth A7 experts who will be delighted to assist you in your project and will be able to find exceptional properties for you.



Article by : Orane TREHET

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