You want to build wealth in real estate and enjoy a tax benefit. Attention, the operation is not without risk.
The year 2019 has been an excellent year for real estate : the million mark in sales has been exceeded for the first time in France. Among these transactions, a large part has been carried out by individuals who engage in rental investment. Many are turning to the nine, to take advantage of the tax reduction offered by the device Pinel. If this is your intention this year, here are seven tips to follow to avoid the pitfalls.
1. Select a location with high rental demand
This is a no-brainer, alas, often forgotten individuals who invest without caution to the rental request, prompted by the single tax. And yet, the latter is only granted if the property is rented ! Before you buy, check the dynamism of the city (growth of the population, sectors of activity, the presence of students...). Then study the area, to reduce your risk rental, your home must appeal to the largest number, and so be close to public transport, community facilities, shops...
>> Practice : Download our guide to council for défiscaliser by investing in real estate
2. Analyze the market
Check the nature of the rental demand in the area to target the best investment. A quick survey with local real estate agents you will avoid, for example, to buy a studio if the number of small surfaces is bloated or the remote area of academics. You also benefit from tips sharp : ease of relocation in the course of the year, state of the market of the former...
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3. Examine the quality of the program
Even if the programs are new, overall a good level, there are disparities in the quality of a building to another, not always reflected in the sale price. Never lose your critical sense in the face of a brochure advertising enticing. Find the manufacturer, detailing the programs that it has already built in the city (or elsewhere), and especially peel the description of the accommodation that you are aiming for.
A look at the materials used (tiles, windows, lock...) and equipment provided (including in the bathrooms and the kitchen) gives a good idea of the quality of construction.
4. Do not buy too expensive
With the device Pinel, the tax reduction is proportional to the acquisition price, also the more you purchase the cheaper, the more you défiscalisez. But following this reasoning, the eyes closed, you might be beautiful disappointment, because if the price of the new one is totally out of touch with the prices of the former, you run the risk of heavy losses to the resale.
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To avoid this, compare the price of nine in your neighborhood and do not buy in the condo too luxurious. If a building is proposed 5 to 10 per cent above the average tariff, its benefits must out of the lot (terraces, garage, secure complex...) and it is not the most suitable for a simple rental investment. Then check the price of the old quality in the neighbouring districts, on average, the nine must be worth between 20 and 30% more. If the deviation is higher, do not buy in the new, as the former without the tax exemption will provide a better profitability.
5. Check the levels of rents
In some cities, the ceilings of rents Pinel are... higher than the rates of the market are actually charged. For example, in 2019 the ceiling Pinel was 12.75€/m2 Marseille and Montpellier (zone A), whereas the site Meilleursagents.com recency of average rents to be respectively 12€/m2 and 12.6€/m2 in these two cities. The same case of figure, Angers, or Reims (zone B1) where the ceiling Pinel is 10,28€/m2, compared with a market rent of respectively 9.9€/m2 and 9.7€/m2.
Before you invest, calculate your profit from the monthly rent real to verify the interest of the operation. To know, to ask the local managers.
6. Compare tax-saving and profitability
Before buying, check if the reduction of tax cumulative over several years compensates for the higher purchase price and the profitability lower. Failing that, invest in the old. Don't waste sight of the fact that the tax benefit Pinel between in the ceiling of tax loopholes (read more below) and that the rents collected will weigh down your overall taxation, because they will be taxed at your marginal tax rate with your other income and subject, in addition to social contributions of 17.2%.
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7. Stay away from packages
once you have your property bought to rent, prefer a local manager rather than the service of rental proposed by the proponents in "packages" (guaranteed rent). By being on the spot, your agent will be able to intervene quickly in case of problems (replacement of equipment, state of the places of exit,...). In addition, it will offer you a rent guarantee in a rate significantly more competitive.
Pinel : reduction intions of taxes, but obligations to meet
The tax reduction offered by the device Pinel is variable according to the number of years for which you agree to rent your home with a lease naked as a principal residence. It corresponds to 12, 18, or 21% of the total amount of the investment, within the limit of€ 300 000 and 5 500€/m2, depending on the rental duration is, respectively, 6, 9 or 12 years.
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To take advantage of this carrot to tax, furthermore, you must select tenants who meet the conditions of resources and the practice of a rent-controlled, depending on the area and the composition of the household. Last point : the tax reductions obtained through the Pinel fall within the cap of niches overall up to€ 10,000.