Are you planning to invest in real estate at the start of the year? This is a particularly good idea since real estate is one of the most profitable and secure investment vehicles to date. Investing in real estate in Paris in particular can be an interesting strategic choice, especially if you buy to rent later.
The French capital benefits from a particularly dynamic real estate market which attracts a diversified clientele. And by exploiting its strengths, you will be able to make a very good deal and optimize your income. I list below the advantages of a rental investment in the Ile-de-France region and especially in Paris.
The real estate market in the Ile-de-France region attracts many investors every year ready to take advantage of the opportunities it offers. It must be admitted, renting in Paris is not really profitable! It is indeed particularly difficult to rent a property in Paris and its suburbs :
Add to this that despite very high prices, the accommodation is often dilapidated, and the property is not always located near work, forcing tenants to make long journeys by transport. Faced with this observation, more and more Parisians are turning to buying real estate to optimize their finances with a property that often costs them less, and which represents a piece of heritage.
The Île-de-France region happens to be the most populated in France with more than 12,650,000 inhabitants spread over Paris and its suburbs. This demographic dynamism offers opportunities for owners of rental properties due to the presence of a population that is mostly young and wealthy .
You should also know that the region has been facing a severe lack of housing for several decades. Supply is therefore significantly lower than demand.
Result: the price of rent can be between 12.40 euros and 28.50 euros per square meter , and the vacancy rate is almost zero over the year.
Paris is a city that many people dream of, both French and foreign. This is not surprising insofar as the largest economic poles, the largest schools and the political and financial institutions are concentrated on the spot. The capital is also the object of the fantasies of young working people, students and families who wish to discover the hectic way of life inherent in this part of the country.
Given the profile of the clientele, buying an apartment in Ile de France and then renting it again is an investment that you can quickly make profitable . All you have to do is go looking for the rare pearl on real estate search sites that list those in Île-de-France. By opting for a specialized site, you will be able to better refine your search and more easily find the property that meets your requirements.
Paris is one of the cities eligible for the various aids provided by the State and which are intended to encourage private investment in rental property. Thanks to the Pinel law, for example, you can buy new housing in Paris, which you then agree to rent for a fixed period. Your advantages: you will benefit from a tax reduction of between 12 and 21% on your rental income, and you can apply for the Paris Housing Loan (PPL) to finance your purchase project.
To sum up, you are killing two birds with one stone: by investing in Pinel, you will be able to receive assistance for the acquisition of a property that will ultimately come back to you . Then, you can re-let to your loved ones while enjoying a reduction on your income tax.
And even if you decide to resell (after the compulsory rental period), you can still benefit from an attractive capital gain given the situation of the Parisian real estate market.
With new real estate, service residences and old properties are also investments that can give rise to state aid (Malraux law, Censi-Bouvard scheme, etc.)
Before you decide on the type of property, I therefore advise you to inform yourself about these aids.
It must be admitted that buying rather than renting your accommodation in Paris is a wise choice which gives you the possibility of optimizing your finances. By buying in Paris in particular, you build up a solid and lasting heritage in a dynamic city.
Even if you invest in the Pinel law, for example, you will always recover your property sooner or later, and will be able to live there, after having built up a good income during the rental period.
Owning a property in Paris is the guarantee of living a great retirement in a dynamic city, without having to pay excessive rent .
Wanting to invest in real estate in Paris is good, but before you start, you must still prepare your project. I therefore give you some advice to optimize your investment.
The Ile-de-France region is very large. By deciding to invest in a city like Paris, you will still be spoiled for choice as to the arrondissement or district in which to buy. You can even expand your options to the Paris suburbs, which may be more affordable for tenants looking for accommodation in the area .
If you opt for intramural Paris, you will have to favor the districts most conducive to investment. Note that the 18th, 19th, 20th, 17th, 13th and 15th are the most popular. This information will be all the more useful for you to refine your property search.
You must also take care to opt for a property that will earn you a nice capital gain on resale, or that is most in line with rental demand.
Know that in Paris, the demand is very strong in terms of small surfaces since the majority of your clientele will consist of students, young couples and young professionals who settle on the premises for a period of 1 to 3 years. (the duration of a contract or a university course). If you want to benefit from better rental yields, it is in your best interest to invest in a studio or a small 2-room apartment.
Do you have the opportunity to dream bigger? Furnished rentals also have a certain appeal for short-term tenants (professionals on business trips, tourists, etc.).