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Investment tip: spread between movable and immovable property

When investing, a good spread between movable and immovable property is recommended on a fiscal level. When building your financial wealth, you shouldn’t put all your eggs in one basket. To reduce the risks, you should rather spread your assets as much as possible. Spreading your movable and immovable properties is an example of a way everybody can use to spread their risks. Immovable property includes, for example, a family home, a second residence by the sea or abroad, a house or plot you rent out. Movable property includes savings, shares, bonds or more alternative investments like diamonds, art or wine.

 

Risk-spreading

From a fiscal point of view, using the ratio of 50% movable and 50% immovable property when investing is ideal. However, you should also consider the economic realities and the risk diversification within your investment portfolio. A portfolio with one house of €750,000 and a package of shares, bonds and cash worth €1,250,000 is safer than a portfolio with a second residence by the sea worth €1,000,000 and a package of shares worth €1.,000,000, even though the latter portfolio is better spread out from a fiscal point of view. The second portfolio proves a much larger risk than the first one.

Benefit from inheritance tax

In Flanders specifically, there is an added bonus for a well spreading of movable and immovable property. Often, you have to pay less inheritance tax. If the spouse, children or grandchildren are the heirs, the inheritance tax is in fact calculated separately for the movable and immovable property that is part of the heritage. This way, the lowest tariff band can be used twice. This tax advantage does not come into play when it concerns, for example, nieces and nephews.

The consultants of BAUNAT DIAMONDS will help you regarding investing in diamonds. They have accumulated many years of professional experience based on knowledge that was - and is - passed over from generation to generation. Their expertise has come from multiple projects in the diamond and jewelry industry, in all stages of production and at all relevant locations worldwide.