Would you like to invest in real estate? So choose the most profitable city. Precisely, speaking of profitability, the South of France is currently very interesting. You will find cities attracting young workers, students and tourists. The opportunity to bet on long-term rental, or seasonal rental.
Want to make your investment profitable? Buy a new home in Aix en Provence. In this way, you can rent your building to tourists. This region of France welcomes thousands of visitors a year, because it is home to many historical sites and monuments. You will find for example baroque style hotels, super villages, …
However, also opt for long-term rental by targeting students. This city welcomes more than 70,000 students, as it is home to the University of Aix-Marseille. This is considered the most famous French-speaking university in the world.
Otherwise, be aware that the city’s real estate market remains interesting. It resisted the fall in prices. Your investment will therefore be profitable.
Investing in new construction allows you to benefit from many tax advantages, including:
And above all, you also benefit from tax exemption. This is a tax advantage of the pinel law which grants you a tax reduction. You benefit from it on condition that you rent your building for a period of 6 years renewable up to 12 years.
As for the rate, it depends on the duration of your rental. If you rent your building for 6 years, it is set at 12%. On the other hand, if you plan to rent for 12 years, you will benefit from a rate of up to 21%
Unfortunately, you are not free to increase the price of your rent. The law imposes a ceiling to be respected. For example, Paris is classified in zone A Bis. The cost of rent must therefore remain below €17.43/m²
The new real estate program designates a new construction of a building. It is therefore a project initiated by a promoter. But before starting work, this professional first agrees to sell 40 to 50% of the housing to be built.
This new concept appeals to investors, as well as individuals, because it allows you to benefit from many advantages. In main residence, the purchase of a program makes it easier to obtain a loan at zero interest. The buyer also benefits from other tax advantages (reduced VAT, etc.)
In rental investment, the program allows you to take advantage of all the advantages of the Pinel law (reduction of income tax for 6 to 12 years, etc.). An opportunity to make the most of your investment.