Measuring the impact on your budget

Whether you rent it out or you want to reside, you can get a home loan for the acquisition of the property. You will get credit through monthly payments if you hand out your property for rental purposes. One should think of all the expenses that they have to bear such as renovations and significant repairs in case of change of tenant.

Taxation

It is in your best interest to provide you with advice, especially from the manager of your bank and from your tax office.

Rents are taxable income from land subject to the scale of income tax and social security levies. Several tax regimes exist with different conditions of deductibility of expenses. Depending on the property you are renting and the amount of the rents, you will have the choice.

Your investment must not have the sole purpose of causing a tax reduction. You have to focus on the quality of the property purchased as such. The greater the tax benefit, the more you should expect a careful review of your record by taxes.

--Shailaja K