Is it worth diversifying your real estate assets geographically ?
Despite the crisis, stone remains a safe investment. You can invest in real estate to become a homeowner, or to build wealth, increase income and reduce taxes. This investment can also be a good way to prepare for retirement or to protect your loved ones. And when investing in this market, it is important to find out about the applicable tax rules, prices and the profitability of a property. Such a project is being prepared in advance. Similarly, it is particularly interesting for an investor to diversify his assets geographically by turning to foreign countries.
Benefiting from more affordable prices in real estate
Rates in France differ widely from one geographical location to another. In some neighborhoods, regions, departments or cities, prices are even exorbitant and unaffordable. In Paris, for example, the price per square metre has been soaring in recent years. In the first quarter of 2019, it even crossed the €10,000 threshold! And in one year, prices have increased by 3.6% in the capital according to the latest data from the ORPI network. The situation is similar in Nantes (+9.2%), Lyon (+9%) and Toulouse (+5.7%).
On the other hand, abroad, in Mauritius in particular, these rates are lower and therefore accessible to more buyers. If you choose this destination for your real estate investment, you can enjoy a luxury property, ideally located, in a dream surrounding and cheaper than in France. Especially since the Mauritian government has set up attractive investment schemes for foreign investors. This is also the case in other countries, thus facilitating the diversification of a real estate portfolio and providing attractive advantages.
Investing abroad to avoid high taxation in France
When investing in real estate, diversification is necessary to achieve better profitability, as a safety measure, as a precaution to avoid and reduce risks in the event of a crisis or economic problems. This also makes it possible to achieve tax optimization. Hence the importance of learning about taxation. Abroad, it is often more interesting than in France, as it has more affordable rates. Indeed, in France, real estate investments are subject to numerous taxes: property, housing, capital gains, property wealth tax, inheritance tax, etc. On the other hand, in other countries such as Mauritius, the tax system is less demanding and more advantageous. Therefore, it is an excellent choice to diversify your wealth.
