Investing in old real estate to renovate it and resell or rent it is an interesting and profitable alternative. It is still necessary to take into account certain essential elements in the context of property renovation. Decryption.
Renovations : what budget should you plan?
In terms of property renovation, the tax exemption of work is the main advantage for the investor. Restoring a dwelling in poor condition means having the possibility of deducting the amount of the work from the rents owed by its future tenants.
But before embarking on this adventure, it is necessary to determine the cost of the renovation. This depends essentially on the state of the house as well as the trades that will contribute to the rehabilitation. To have an overall estimate of the budget to be expected, it is better to be assisted by an architect during the visit or to use a work broker.
Generally, it takes between 600 to 1200 euros per square meter of repair. The main expenses remain the bathroom, kitchen, insulation, double-glazed windows and heating included to reduce energy costs.
Property renovation: mandatory diagnostics
When buying a property, many diagnoses complete the transaction. They are necessary to inform the buyer about the condition of the accommodation, its safety and in particular its energy performance. Among other things, they indicate the renovation work to be carried out to comply with the standards in force. All of this data is collected in a DDT or technical diagnostic document ». The latter includes the CREP (statement of risk of exposure to lead), the absence or presence of products or materials presenting asbestos, the state indicating the presence of termites, the ERNT (state of natural risks and technologies), the electrical and gas installation inside the building as well as an DPE (energy performance diagnosis).
Grants to renovate your property
To encourage landlords to carry out major work, various tools are available to them. There is for example the deduction of works by which it is possible to deduct the total amount of the works from the property income of the owners. They can also take advantage of attractive subsidy rates thanks to aid from Anah or the National Housing Agency. These subsidies are divided into two categories: those which are intended for major renovation work to repair a very damaged property, and those which are dedicated to improvement work.
For a successful rental investment, it is recommended not to buy a property located in the countryside. The ideal is to bet on an old accommodation which is in the big cities, if possible near the center. To find old apartments, the service of a notary is strongly requested, because real estate agencies are often expensive and the properties they offer are generally new constructions. Some auctions also offer antique goods at affordable prices.