The context: I find myself with a high marginal tax rate (49+%) and would like to find ways to reduce my tax burden. We also have a plan to invest in real estate, most likely in France, with the goal to rent it. We’d put 20% down and borrow the rest, the cash-flow from the rent would ideally cover the loan + taxes.
I heard that it’s possible to buy a piece of real estate that needs renovating, then renovate it and deduct all the expenses tied to the renovation from the income declared the year the renovation was done.
This sounds time consuming but very interesting financially.
- Has anyone done this? If so, how was your experience?
- Are there any gotchas with that plan?
Also I spent several evenings looking at apartment on anibis and leboncoin and found very few apartments that offer 5+% gross yield. Any tips on the kind of properties I should be looking at or places to look-into/avoid?