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Advantages
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Disadvantages
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Tax saving
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Plus
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BUY
FOR RENTING
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Assure some dividends for the future (cmplement to your retirement).
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The risk of decrease in the price
of real estate is theoretical but exists.
| If fnanced through a bank loan,
interest costs can be deducted form your renting revenues.
| The renting revenus may offset
part or all of your financing expenses of your credit.
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Possibility to recover the money
you have invested or even get some capital gains.
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You need a minimum money since
your bank will finance about 80% of the good.
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Helps you pay your financing.
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If you have chosen variable interest
rate, your monthly payments might decrease, depending on the
evolution of interest rates. However, do not forget that they
also might decrease.
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PRINCIPAL
RESIDENCE
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Your real financing cost is the
difference between the cost of your financing per month and
what would have been your rets per month.
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Acquisition and sale's prices
depend on the evolution of the market.
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Low inheritance taxes if your
good is classified as national heritage.
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Possibility to recover the money
you have invested or even get some capital gains
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Normaly, a minimum 20% on the
acquisition price is needed before getting the financing.
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Possibility of incorporating
an entity that holds all your goods, in order to benefit from
lower taxation.
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If you have chosen variable interest
rate, your monthly payments might decrease, depending on the
evolution of interest rates. However, do not forget that they
also might decrease.
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Bank interests are deductible.
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RENTING
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Note that through monthly rents
you are not acquiring the property of the good while it is
not the case when financing your acquisition.
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Some tax credits are possible.
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Rents increase. Note that your
rents are GDP-indexed.
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