Life insurance vs rental real estate: what to choose?

When it comes to investing money wisely, two options often come up:

👉 Life insurance, often vaunted for its flexibility

👉 Rental real estate, perceived as a solid and profitable investment

But then... between these two strategies, which one is the most interesting? Let’s see the advantages and limitations of each to better guide your choice.

🏦 Life insurance: a flexible and fiscally interesting investment

✅ Benefits:

Availability of savings: you can make withdrawals at any time, with reduced taxation after 8 years.

Diversification: you can invest in euro funds (guaranteed capital) or units of account (riskier but more dynamic).

Advantageous transmission: in the event of death, you benefit from a significant tax allowance (up to €152,500 per beneficiary).

❌ Limits:

Funds denominated in euros earn little today (around 2 to 3%).

The units of account are exposed to market risks.

It is not a tangible investment: your money is placed, but not in a 'real' asset.

🏠 Rental real estate: a solid but engaging investment

✅ Benefits:

Rental yield: you receive regular rents, sometimes above 5%.

Leverage of credit: you can invest without having the full amount initially.

Tangible heritage: a property has real value and can be transferred or resold.

❌ Limits:

Less liquidity: it takes time to resell a good.

Rental management: work, vacancy, unpaid... this requires the organization (or a manager).

Sometimes heavy taxation without a good strategy (IR, capital gains, IFI...).

⚖️ So, what to choose?

👉 If you are looking for flexibility, availability and transmission, life insurance can be a great tool.

👉 If you prioritize yield, sustainable heritage and leverage, rental real estate has its rightful place.

💡 The right reflex: the two are complementary.

Life insurance can finance your contribution for a rental investment, or serve as a security reserve while you repay your loan.

Need a customized advice?

We can help you find the right balance between real estate and financial investments according to your profile and objectives.