Better to invest than to save: it has been the credo for a few years now. With low returns on traditional savings products, it has become increasingly more interesting to invest in for example real estate than to save money. The interest rate is also lower than inflation, which means you de facto lose money when it is in a savings account.
Much more interesting? To invest in real estate. This often involves buying residential property (flats, service flats, student quarters) as we know it or even investing through listed property companies.
Investing in real estate has many advantages:
Of course, investing is not just made up of benefits. Investing in (commercial) property is a long-term business and there are purchase costs involved such as registration and notary fees – making it a less liquid investment.
Have you considered investing in SME units yet? While investing in SME units, you are investing in business property but with lower entry barriers than – for example – investments in logistics, retail or even office property (which are also part of the business property category)… Many business owners invest in their own modern and sustainable base of operations. But do consider investing in them for rental options as well. Especially as the SME units developed by BVI.EU enjoy a very high degree of modularity and flexibility – they’re ideal for renting out. Maintaining the value of this type of property on one hand is easy, and the demand on the rental market for a high-quality, sustainable base for businesses continues growing.
Renting your property to professional tenants also has its advantages:
With any investment, taxation plays its role. This is no different when investing in commercial real estate. What is important to know is that the actual rental income is taxed – a big difference from renting out residential property. So investments are often made in commercial real estate through a company in order to benefit from depreciation, VAT recovery, since 2019 it is also possible to charge VAT on property rentals for new construction.
On the other hand, there is of course the fact that when real estate is sold from the company, the capital gain will be taxed. So seek adequate advice.
Curious about how we can help you invest in SME real estate? With BVI.EU, you have already found the right partner with more than 20 years of experience and expertise in the field of SME parks
We look forward to further explaining the possibilities in a personal meeting.
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