What you need to know for your rental purchase, explained by your Deauville concierge
Your cash inflows are stable, you are calm and are now thinking about investing your money with an interesting investment. You then considered the rental purchase and you are right. Casting your savings into stone is a very good idea for all novice and professional investors. Although the current context does not seem to lend itself to it, your Deauville concierge explains why investing in real estate is still a good idea and what you need to know to make a successful rental purchase.
Why invest in rental property
Investing in buy-to-let investment will benefit you for several reasons. Indeed, a rental purchase has advantages whether in the short or long term. Your home thus allows the creation of interesting additional income, to develop your assets and to ensure your retirement. In addition, this type of investment, although supervised, allows you to leave a solid legacy for the future of your descendants.
Buying an apartment or a house for rental purposes limits the impact of inflation on your money, while protecting your family. This type of investment opens up many possibilities, each with their own advantages. You can buy new to rent over the long term, invest in housing to renovate with the aim of a significant capital gain on resale or even acquire a house in an active or tourist area to take advantage of the flow of holidaymakers thanks to seasonal rental. .
Your choice of investment must be considered according to your objectives: what margin of profitability do you wish to achieve? Also consider the length of your investment. You will not make the same choice of accommodation for a seasonal rental as for a long-term rental. Just as you will not choose the same type of property if you are counting on a capital gain in a few years or if you are making a rental purchase to collect monthly income.
Devices to know for your rental purchase
The State aims to promote rental investments by granting tax assistance to buyers. These aids must be taken into account before any rental purchase to ensure maximum profitability for your project.
The Pinel law
The Pinel law (evolution of the Duflot law in 2014) concerns new housing intended for rental. It allows owners to benefit from a tax reduction of up to 18%, spread over 9 years. Attention, these rates are only effective for investments made until December 31, 2022. Since January 1, 2023, the rates follow article 168 of the Finance law of 2021. If you want more information about the criteria selection of this device, the site economy.gouv.fr has a detailed article on the Pinel law.
The Denormandie device
If you plan to buy an older home, you can benefit from a tax reduction thanks to the Denormandie law. For this, your home must be rehabilitated or receive energy improvements representing at least 25% of the total cost of your investment. The tax reduction takes into account the cost of acquisition, the rental commitment period and the size of your property. You can thus benefit from a reduction adapted according to the price of the property:
- 12% for 6 years rental
- 18% for 9 years of commitment
- 21% for 12 years of rental contract
The Loc'Avantage tax reduction
Accessible for any lease signed after January 1, 2022, the Loc'Avantage scheme (formerly the Cosse scheme) allows all owners to obtain a tax reduction based on the rent set up for their accommodation. This aid, available only for unfurnished accommodation rented as the tenant's main residence, is divided into three levels: Loc1; Loc2 and Loc3. These will define your tax reduction according to the price of your rent (positioned at 15%, 30% or 45% below the market price). Also note that a premium is paid for Loc2 and Loc3 if you use a management mandate or sublet.
Your Deauville concierge makes your rental investment profitable
In addition to state aid, the rental management services of your Deauville concierge help improve your rental yield. Specializing in short-term rentals, the YourHostHelper franchise is a leader in the French market with its 10 years of experience. Our complete management offer provides you with 15 quality services to ensure perfect control of your seasonal rental.
Our team of experts takes care of all of your rental management, giving you total peace of mind. Thanks to its knowledge of the market, your Deauville Concierge increases your rental income by an average of 25%. We save you time and we take care of the publication of your advertisements, the reception of your tenants as well as the cleaning of your accommodation.
Be accompanied by Airbnb rental professionals for a flourishing rental purchase.
If you want to make your first real estate investment, the rental purchase is a safe bet for those who want to make their money grow. Only, like any investment, the rental purchase is well thought out upstream. To make a successful rental investment, it is important to find out about the various aids offered by the State. These will allow you to increase the profitability of your project in a non-negligible way. In addition, by choosing to invest in an Airbnb (or short-term) rental, your Deauville concierge helps you increase your rental income while giving you free time.
