Less expensive to buy than a property in good condition, offering interesting prospects for rental profitability as well as significant tax advantages, a property to be renovated is a very wise investment. However, it often requires fairly substantial work, which is why it is important to take real estate diagnostics into account before concluding the transaction.
Acquiring a property to renovate also offers the possibility of redoing it according to one’s tastes and making it a practical and ergonomic home. This option makes it possible to highlight the property in question, because the renovation makes it possible to improve its general condition (plumbing, painting, sealing, etc.) as well as the energy performance thanks to the installation of wood insulation as here for example. . In addition, once renovated, the property will offer good prospects for rental profitability, because this type of property has, for the most part, a high rental value.
But the greatest asset of a property to be renovated is certainly its lower cost compared to a property in good condition. Indeed, the costs of the work, which are often quite substantial, are deducted from the sale price and leave a greater margin for negotiation. To further reduce the expenses associated with such an investment, do not hesitate to negotiate the price of the work to be carried out and compare several quotes.
In addition to this, it entitles you to significant tax benefits such as the reduction of VAT up to 5.5% or the deduction of the total amount of work and loan interest from property income. On the other hand, it is also possible to benefit from certain grants from Anah to finance certain works.
When acquiring a property to renovate, real estate diagnostics are very important, because they allow you to accurately assess the property from every angle. In particular, they provide accurate information on the condition of the property, its energy performance, the level of security it offers, etc. But they provide information above all on the work and repairs necessary to bring the property up to standard. Consequently, it is on the basis of these diagnoses that an investor will be able to assess with precision and accuracy the expenses that will be generated by the purchase and renovation of the property concerned.
These diagnoses are an integral part of the process of buying a property to be renovated. Called “technical diagnostic document” or DDT, they provide information on the possible presence of lead, asbestos and termites, the state of the gas and electricity installation and the level of insulation of the accommodation, in other words, its energy performance. They are also established after inspection by technicians of non-collective sanitation facilities.