Real estate investment has long been considered a safe haven. Despite economic fluctuations and temporary crises, real estate continues to attract large and small investors. But why does this enthusiasm persist? What are the concrete benefits of real estate investment? Bernard Baeumlin, Chartered Accountant and Tax Specialist, gives his view on the market.
CABINET BAEUMLIN is an accounting and auditing firm located in Mulhouse, in the heart of Haut-Rhin. It was founded about twenty years ago by Bernard BAEUMLIN, a certified public accountant and auditor. Bernard Baeumlin has over 30 years of professional experience and runs the accounting firm with his wife, Aline.
- A Tangible and Reassuring Investment
Unlike stocks or often complex financial products, real estate is a tangible, visible, and tangible asset. It offers a certain psychological security to the investor. Owning a property means owning a durable, useful, and transferable asset. - A Source of Regular Income
One of the major attractions of real estate is the ability to use the property for personal use (vacation purposes) but also to generate rental income. Renting out a property allows you to collect rent, often enough to cover the monthly payments on a mortgage. Once the loan is repaid, these rents become a very attractive source of income, particularly for retirement. - Powerful credit leverage
Real estate is one of the few areas where you can invest with credit. In other words, you can acquire a property with the bank’s money, while building an estate financed in part by tenants’ rent. This leverage allows you to build capital without tying up significant savings upfront. - Attractive tax benefits
Several tax schemes encourage investment in real estate, particularly in France: the Pinel law, the LMNP (Non-Professional Furnished Rental) status, etc. These mechanisms allow you to reduce your taxes while investing in the real economy and meeting rental demand. - A relatively stable market over the long term
Despite economic cycles, real estate remains a generally stable market. Demand for housing remains strong, especially in large cities, and well-located properties increase in value over time. Property appreciation often results in a significant capital gain upon resale. - A wealth diversification tool
Investing in real estate allows you to diversify your investments. It’s a good way to avoid putting “all your eggs in one basket” and to secure your assets in the face of financial market instability.
In conclusion
Investing in real estate remains a smart long-term strategy, provided you are well-informed and choose the right product. Whether it’s to secure your future, generate additional income, or build your assets, real estate continues to prove its solidity.
Bernard Baeumlin
Chartered Accountant – Tax Specialist
//
