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Rental investment and tax exemption on Pau

Succeed your rental investment
Buying a new home to rent is an ideal way to supplement your income and build a long-lasting heritage. Follow our tips for a successful rental investment.
Define your project clearly
Having a precise vision of your rental investment project will allow you to define the essential criteria for the purchase of your property. Ask yourself the right questions !
Would you like to receive additional income and prepare for retirement? Resell your apartment after a few years to realize an added value? Or on the contrary you constitute a real estate heritage to transmit to your children? These questions are critical to knowing how to approach your investment. For example if you are buying to prepare for your retirement, it is better to choose a dwelling among the smaller budgets, type studio or T2, which you will have finished repaying the credit before your retirement.
Which accommodation to choose?
For the choice of the type of apartment, take stock of the involvement you want to put in the management of the rental. Small areas such as studios, highly demanded, will easily find takers for an affordable acquisition price. The turnover rate of tenants will however be higher because they are often rented by students or single people. In contrast, supermarkets will be more expensive to buy but will be rented to families who will move less frequently.
New advantages for rental investment
For your rental investment to be profitable, you will need to find a tenant quickly. During your research, it is therefore important to target apartments that will seduce potential tenants. Privilege property located in an area with high rental demand, close to transport and shops. Also think about comfort by choosing a good quality, respecting the standards and regulations in force. Our new real estate programs meet all these criteria, and allow you to offer your home for rent immediately after purchase, with reduced fees for you and your tenant, since it will not be necessary to carry out work.
Finance your rental investment
The purchase of real estate for a rental investment gives right to tax exemption devices such as the Pinel law. This allows you to benefit, under conditions, from a tax reduction up to 63 000 €, proportional to the rental period of your home. For a new property, you can also benefit from reduced notary fees (2 to 3% against 7 to 8% in the old) and the exemption of the communal share of the property tax for two years in most municipalities .
Make your real estate purchase
Have you found your ideal accommodation? It's time to start! Find the major steps of a real estate purchase to achieve your project with confidence.
Once owner, you will only have to look for your tenant or go through a rental management organization that will do all the steps for you. As soon as you find your tenant, you can collect your first rental income and enjoy, if you are eligible, your tax reduction!
Investing in rental real estate allows you to benefit from tax exemption and pay less taxes.
The Pinel law (replacing the previous law Duflot), applying to new housing or in a future state of completion, can optimize its tax but it is also possible to enjoy tax benefits in the rental investment of old real estate.
Tax exemption in new real estate
The law of Pinel applies to the rental property investment new or in a future state of completion: VEFA. This device replaces the Duflot law, and the previous device of the Scellier law.
The application of the Pinel law depends on the geographical location of the property. Indeed, housing must be located in one of the areas of the law (municipalities where the rental demand is very strong). The property must be rented as a principal residence for a minimum period of 6 years following the acquisition. Rents must respect a ceiling set by law between 8.69 euros and 16.83 euros per square meter.
Tenant income must be below a certain ceiling.
The purpose of the scheme is to facilitate access to housing for modest households.
The landlord fulfilling the conditions of the law will be able to benefit from a variable tax reduction according to the duration of renting: 12% for a commitment of 6 years and 18% for a commitment of 9 years (possibility to extend the period until 'at the age of 12). In the latter case, the relief is increased to 21%.
Tax exemption in the old real estate
Old properties can also benefit from a tax exemption system: the Malraux law. This is a program to promote the renovation of dilapidated rental real estate.
Owners of old homes renovating their property to rent them later enjoy a tax reduction of up to 30% of the amount of work. The property must be rented for a minimum of 6 years and be located in a specific geographical area.
The amount of work taken into account is limited to EUR 100,000 and excludes some expensive works such as demolition or reconstruction.