Real estate is one of the most attractive sectors to invest in. However, getting as much information as possible and surrounding yourself with professionals is the only way to make a real estate investment profitable. If you are at the time of asking yourself questions, discover today the advantages and disadvantages of new and old to better decide.
The first asset of a new property investment is the quality of the property. Unlike the old, the new does not require any renovation related to obsolescence or energy consumption. Then, buyers are generally covered by the insurance taken out by the promoter for a minimum period of 10 years.
Investing in new also entitles you to some financial advantages:
In addition, the new is more profitable. Such real estate increases in value more easily over time. Obviously, it is more expensive than in the old one, but the investment remains profitable. And to make a successful new real estate investment, get help from the Vousfinancer broker with the steps concerning your mortgage.
Investing in the old has some advantages, especially at the tax level. Several devices indeed encourage investment in the old that some experts describe as a real tax niche.
Let us quote for example the old Borloo device which grants tax advantages to landlords renting empty housing under several conditions:
This system includes a 30% deduction on property income.
The former has other significant advantages in a rental investment. These properties generally benefit from a strategic location, close to the city center and public transport. Then, it is more accessible in terms of price.
However, some drawbacks should not be overlooked, starting with the instability of the yield which is based on several parameters (taxes, prices, rental potential, etc.). The old building is also conducive to some management difficulties, in particular renovations in the event of degradation, the search for a tenant if the property is vacant, etc.
If you are about to invest in new or old real estate, here is some information that will help you decide. Are you looking for a city where the price per m² is accessible? Investigate around Saint-Etienne (€1,296), Limoges (€1,425), Mulhouse (€1,551) or Brest (€1,578)
You should also know that properties by the sea, mainly the construction of new houses, are currently very popular. This sector is mainly aimed at potential buyers living in towns near the coast and who wish to make a second acquisition or have a new house built. If you have this profile, think of the 5,500km of coastline that awaits you in France.
New or old, a real estate investment always has advantages and disadvantages. The choice is up to the investor and their personal profile. However, the process remains delicate, hence the need to call on a professional in order to quickly find the property that meets your expectations. If you are still hesitating, this page sheds light on the reasons for using a real estate agent.