Investing in old real estate is in vogue: for several years, soaring prices have encouraged a potential buyer to rush in order not to be overtaken by a competitor, and consequently, to neglect his search.
Today, the market is tense and the future buyer has more time to evaluate a property and satisfy his choice « says René Pallincourt the president of the national federation of real estate (FNAIM). Real estate investors do not make no mistake, a study by the UFF-IFOP Observatory shows that in France 56% of the richest people consider old real estate to be the best rental investment, ahead of investments in housing for the elderly and those in housing students who come ex-aequo with 53% of preference each.So why such interest in old real estate?What advantages and guarantees does it provide?Here are some answers.
The old house: a boon for the investor
Investing in an old house generally requires renovation. The house is dilapidated, work must be done: strong arguments for the buyer who can thus obtain a discount and buy the property at a lower price. The advantage is that the investor reduces the purchase cost of the old house.
However, as a buyer you must ensure that the renovation is not exorbitant, if necessary, it is to be hoped with the works, to increase the value and the attraction of the property when you want to sell it or rent it out. ‘where the importance of choosing an old house which has a strong attractive potential and whose value can be significantly increased by renovation. If you are struggling to find the rare pearl, get closer to agencies with advertisements for old houses to be restored. Another tip, go through the streets from time to time to find an old house that could suit your business.
Read also: Buying an old house: what to watch out for?
The budget is within your reach
When you want to invest in an old house by means of a loan, include the renovation costs. This will give you the opportunity to quickly complete the work and quickly make your investment profitable if you put your house up for rent.
The tying of the budget for the renovation of an old house that you then wish to rent out can benefit from tax deductions or other subsidies to reduce the total cost of your real estate project.
You can find out from the National Housing Agency (Anah) but first be sure that your accommodation is not intended for a member of your household, one of your ascendants or descendants. Also the cost of your work must be at least 1500 euros and must have the objective of improving the safety, the healthiness or the equipment of the dwellings and the common parts of buildings of your property. Town halls and general councils are also providers of financial support. If necessary, contact the town planning department of the various local authorities to find out if your project is eligible.
Read also: Should you always invest in old rental real estate?