"Taking out a loan in fine is a good way to finance a real estate purchase in Pinel"

Reader's question.Despite its refocusing, the Pinel system remains a good way to invest in new real estate by reducing taxes.To finance a purchase in Pinel, too few investors think of taking out a loan a fine.It is true that this method of financing is still poorly understood.

"I plan to buy an apartment with the Pinel tax exemption system for a value of 300,000 euros.I have a contribution of 180,000 euros.My bank offers me to take out a loan in fine to finance this operation.are the advantages and disadvantages of such a loan? "

A loan in fine offers the possibility of repaying only the interest throughout the duration of the loan, while the repayment of the capital is made, in its entirety, at the end of the term of the loan in question.Choosing to organize your debt has the advantage of allowing a simpler calculation of the total cost of credit, the interest of the loan in fine not being decreasing and not varying according to the duration of the loan.

Money back guarantees

Like the amortizable loan, the loan in fine has the advantage of allowing the interest on the loan to be deducted from its rental income.As such, it should be noted that the higher the amount of interest, the greater the tax benefit.In addition, the amount of deductible interest will not vary over the life of the loan.

However, in fine credit also has some drawbacks: it is more expensive because the interest rates applied are often higher than that of other loans.In addition, the repayment of all the capital borrowed at maturity often supposes to have reimbursement guarantees from the outset.

Posted Date: 2020-07-23

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