The population growth resulting in a strong demand for housing in France is an excellent opportunity to invest in real estate. For this purpose, there are generally two options: investment in old real estate or in new. Discover in this article the main reasons that should push you to opt for new real estate.
Summary
You have several options for approaching such an investment.
According to French law, a dwelling is classified under the new real estate regime when it has been in a state of perfect completion for a maximum of 5 years and has never been inhabited by its owner or a tenant. Added to this is the fact that the property has never been resold or passed to another owner during these 5 years of existence.
To invest in new real estate, two choices are available to you: either you buy a housing already built turnkey, or you buy it in VEFA (sale in a state of future completion). The acquisition in VEFA consists in buying a property on plan from a real estate developer, who builds the property for you while receiving your payment on the basis of a staggering. Typically, you make the final payment upon receipt of your build.
Having these two possibilities for new real estate is particularly interesting, since you can easily adjust it according to your aspirations, the financial levers you have and your financing plan. Also, as soon as you are in possession of your new home, you can make it profitable in several ways: either you resell it to make a nice capital gain, or you rent it out. If you are interested in renting, do not hesitate to consult this site to find out which rental investment to choose, for more profitability.
A heritage that meets current standards, attractive and non-binding.
New real estate allows you to have buildings that meet the most current construction standards. These are essentially the recommendations in force today for the insulation of housing, its energy performance and its respect for environmental integrity.
In addition, when you have decided to buy the accommodation off-plan, you can already have all your construction considerations taken into account from the start and also benefit from the most recent innovations or ideas in terms of architecture, interior or exterior design, equipment and furnishings. Thus, a new building will be much more pleasant, attractive, comfortable and welcoming, thus offering you excellent leeway to quickly find a buyer or tenants.
You have serious tax advantages with an investment in new
Tax exemption laws have been introduced by the government in order to encourage new real estate investment. These include the Pinel law, which allows you to enjoy a tax reduction of 12, 18 and 21% of the purchase price for rental periods ranging from 6, 9 to 12 years respectively. The Censi-Bouvard law comes to relieve people who intend to invest in furnished rental LMNP by reducing tax by 11% of the price of the property excluding tax, for a rental of 9 years.
Finally, notary fees are reduced in the acquisition of new real estate: they are around 2 to 3% unlike old homes where they are in the order of 6 to 8%.
