You are a tenant and you want to invest your money? It’s crazy to think that renting an apartment is like throwing your money out the window. It may even be the best option to set aside enough money to maintain a good standard of living later on. But what kind of investment should you choose in this case?
Life insurance, always up to date!
Of course, the A passbook is a secure investment. Nevertheless, the return is not very attractive. So far, life insurance remains the best medium- and long-term investment available. It is a remunerative investment, especially if you opt for a multisupport contract. In this case, you should invest your money in a share, bond or money market instrument. Of course, you will be able to make your money grow up to 5%. However, the risks are nice and well there.
If you don’t want to confuse yourself with the loss of value of your capital, then you should prefer a contract with funds in euros. This way you will keep your capital and the interest that goes with it, regardless of the fluctuations of the financial market. Moreover, the return is around 3%.
Note: Your capital must be invested for a fixed period of time, usually between 8 and 10 years. Define your patrimonial projects in a few clicks on Althos Patrimoine.
The equity savings plan (PEA)
The PEA is also a cost-effective solution, especially after the abolition of the 30% Flat Tax. The interest rate is between 3 to 5% net per year. Thus, you will avoid the internal management fees of a UCITS (Undertaking for Collective Investment in Transferable Securities). The advantage is that the ceiling is very interesting, up to €150,000. Similarly, you can make payments at any time as long as the threshold is not exceeded. And above all, the withdrawal is not subject to income tax.
Note: The PEA-SME is €75,000. You can add it to your classic PEA, which will give you a total of €225,000.
Real estate investment
Even if you wish to keep the status of “tenant”, you can invest in a sustainable asset that will make you earn a few hundred euros every month. If you don’t want to leave your main residence, this is a rather interesting option. The objective is to buy a cheap house, which is located in a place where taxation and the price per square meter are more attractive. Then you can rent it out and pocket a monthly rent… On top of that, you will have built up a lasting heritage!