In the Borloo popular housing scheme only housing acquired or built since 1 January 2006 is concerned. The housing must be rented as a principal residence. the scheme also applies to rehabilitated property or local property converted into housing. Rhino Mediation Leeds family
With the popular Borloo real estate you can deduct from your income a portion of the amount of the purchase of real estate, and therefore increase the expenses which allows to realize a property deficit *. However, you will have to rent the property for at least nine years at a lower rent than the local market in order to respect the resources of your tenants.
After 3 years you can recover the real estate rent in Borloo popular to benefit an ascendant or a descendant (the future tenant must not be attached to the tax home). However, in this case you lose the tax benefits that are suspended.
There is some requirement for the money invested in the popular Borloo Real Estate to be available. If for any reason other than death, disability or unemployment you sell the property before the nine-year term, all tax benefits earned must be repaid to the state.
It is difficult to predict the relationship as part of a popular Borloo real estate investment. This will depend on the rents collected, the size and location.
The popular Borloo real estate allows a depreciation of 50% over 9 years (6% during the first 7 years 4% then for the next 2 years). You can extend your investment Borloo popular, in fact, the state allows that we make an additional amortization of 2.5% over one or two periods of 3 years. You will be entitled to a specific deduction of 30% on gross property income, with a maximum ceiling of 10700 euros.
On the other hand, the real estate capital gain within the framework of the popular Borloo system will be taxable at 16%, to which will be added 11% of social security contributions. From the 5th year of possession of the property, you will be entitled to a 10% abatement on the capital gain. At this, it will be necessary to add a reduction of 1000 euros systematically on your property income. In fifteen years, the exemption will be reached.
How could the housing problem be solved in a particular way?
At the end of 2010 there were 687,523 empty homes in new construction in Spain that did not find a buyer. This figure, according to several analysts of the sector, seems that it will tend to rise in the next 2 years.
A possible solution to this mismatch between housing and buyer could be a temporary rental by real estate promoters while the apartment is not sold. Many real estate companies have carried out this option of property, while others decide to wait and have the new flat empty until they find a buyer so that the house does not lose value.
In the same way, it could also mobilize the idle housing stock that is in the hands of the nationalized financial sector with a symbolic social rent of € 250 per month, an amount affordable for families who have stayed evicted by the bank or for those people who do not have the resources to pay the rent at the market price. If this is not feasible, thousands of families in Spain will be on the verge of social exclusion.