Nowadays, with skyrocketing inflation, one of the best ways to prevent the money earned and saved over time from losing value is through investment, including investing in brick, which can be an important passive annuity for the owner, that is, an income-generating property which is considered as a source of income but to which one must also be careful to avoid running into scams or various deceptions. In today’s article we will deepen it to understand what it is, what is the gain and what are the advantages. You are ready? Let’s begin!
The Italians bet on property
Italians have always considered the brick as a precious tangible asset that can pass from generation to generation, as a kind of inheritance, which over time tends to retain its value, unless the real estate market presents price fluctuations to negative slope.
However, brick grants homeowners not only a roof but also an automatic entrance if they rent out their property or decide to sell it.
According to statistical data between 72% and 75% of the Italian population owns at least one home, to this is also added 73% of the people who intend to buy a second home, precisely because it is seen as an opportunity. safe investment, that is, a profitable haven.
Income property meaning
Starting this segment by answering the question: what are income properties?
First of all, the term income property meaning is associated with the income derived from a home that is already leased through a rental contract that allows the owner to draw a continuous income based on the rent paid by the tenants.
We often hear of investors interested in buying income properties, whether a house, a terraced house, an apartment, a business premises, which are already leased; in short, because it is seen as an excellent Italian real estate investment on which to focus.
Curiously, it is estimated that the Italians who invest in this type of already inhabited property represent 10% of the sector.
It is worth specifying that more and more Italians see the brick as a source of income investment, below we will talk about the advantages.
Income investment benefits
Buying an income property means buying a home that is already rented, and this can involve certain tax breaks if it concerns residential properties or the incentives provided by law for those who are interested in buying a place to further rent it. .
Return on investment
It must be borne in mind that when you decide to buy income properties, the capital invested initially to conclude the sale can become profitable over time, a long-term profitability that can only increase exponentially, especially if it is about premises with commercial use, already leased to historical companies or for which long-term lease agreements are envisaged.
For example, if you decide to buy a leased property, house, premises or apartment, the buyer can immediately know how much the income deriving from this real estate investment could amount, making it very attractive for investors and people. who want to make their savings pay off.
On the contrary, if you buy an uninhabited property, and you intend to sell or rent it, you are never sure of the gain that will result from it, not even the time it will take to sell or rent it.
This is why the purchase of investment properties guarantees a secure entry to the potential buyer, who first of all is aware of what the passive income to be received each month will be, thus resulting in a kind of return of the thick money for the sale that , among other things, it can be used to cover the expenses to be incurred for the maintenance and management of the property, which are always borne by the owner in every lease.
Income real estate tax breaks
The tax relief deriving from income-generating properties concerns a fixed taxation, separate from IRPEF, at a rate that varies, depending on the case, from 10% to 21% of the rent, and is reserved for people interested in real estate already leased for sale.
This subsidized tax regime for the owners of real estate income is nothing more than the dry rental coupon, which is the separate tax from the IRPEF, this means that the taxation of the rental income is in a single substitute rate, that is, it does not overlap with the owner’s other income in the IRPEF which is based on tiered rates.
What to know before buying an income property?
Given that the purchase of real estate is always an investment in the brick and is considered a safe haven asset, it is necessary to keep in mind a number of factors to consider and evaluate well before purchasing an income property, here are what they are:
The type of property, whether residential (apartment, house, villa), commercial space, hotel, etc., and in what condition it is, this to evaluate any future management and maintenance costs.
- What is the market value of a real estate
- In what area is the income property located, if it is in a prestigious area, in a central or infamous area of the city, if it is well served by public transport and close to essential services, all aspects that make a property more or less required and therefore, translates into a higher rental income for properties located in central and well-served areas
- What is the duration of the real estate contract
- Who is the tenant and what is their economic situation
- We focus on this last aspect and we advise you to buy rented properties for sale that have already been leased to companies, businesses, or companies, this to reduce the risk that the tenant of the residential property cannot pay within the deadlines set by the contract, and therefore, in order not to run into arrears or late payment of the rent.
Finally, dear friends of Financial Empires, as we have seen from the analysis of the advantages associated with the purchase of an income property, this type of real estate investment is increasingly becoming a very attractive choice for investors looking for a passive, stable income. and secure in a short time, which at the same time allows you to take advantage of more favorable tax regimes.
Financial Empires, The Editorial Staff
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