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Real estate investment in Bordeaux: the Pinel Law, always as advantageous?

Real estate investment is a step in life. When one decides to become an owner,the purchase of a property allows, among other things, to build up an estate. But depending on the goods available on the market, different devices apply. Devices that apply in particular to rental real estate investment, such as the Pinel Act. The latter applies to new dwellings built in areas where demand exceeds supply. Thus, the real estate investment then allows to rent the property to a person who meets certain eligibility criteria.

Pinel law and real estate investment, multiple offers

The Pinel Act favours the purchase of a new apartment or house in high-demand neighbourhoods. The offers are therefore diversifying, making it possible to invest in Bordeaux. Indeed, this scheme allows real estate investment in a new home, and then rents it out. For homeowners, it allows for a significant tax reduction depending on the length of time the property is leased.

For example, for a six-year lease term, the tax reduction will be up to 12% of the price of the property. It will be 18% of the property’s price for 9 years of rental, and 21% for a 12-year lease of the property.

In addition, it is possible to rent to a family member,as long as the family member is not attached to the same tax household. A possibility that reassures owners who want to rent a property in peace. In short, it’s a way to house your children while enjoying the benefits of the Pinel Act.

New apartments rental
Housing eligible for the Pinel Act is mainly located in high-demand neighbourhoods.

To make such a real estate investment, it is necessary to verify beforehand that the coveted dwelling is eligible for the Pinel Act. Making an investment in Bordeaux, as everywhere in France, is well framed. An investor benefits from the scheme only within the limit of the investment for two assets per year; within the limit of a total investment of 300,000 euros per year and a ceiling of 5,500 euros/m2.

Preparing for the future with the Pinel Law in Bordeaux

Real estate is a safe haven for those who want to make an investment. That is why the state is so encouraging the French to invest in stone. With tax cuts, this allows investors to embark on real estate investment serenely. A property recovered after the lease has been completed. In this way, the owner can dispose of it as he wishes, and settle there.

The real estate investment in Bordeaux in a dwelling eligible for the Pinel Law also entails certain “constraints” for the owner. He can only rent his property to a tenant with incomes below a defined ceiling. This ceiling is set by decree every year, depending on the place of investment. Rent is also capped,not exceeding the established limit. This prevents abuse, especially when demand is very high.

Thus, among the many existing schemes, the Pinel Act encourages real estate investment. In Bordeaux, where real estate occupies a significant part of the market, investment remains a safe bet. Investing in stone in new neighbourhoods that come out of the ground allows us to capitalize on the future, and build up a real estate heritage indispensable for the future…

Sources:

  1. Rental investment: real estate investment to prepare for its future, Valority Investment
  2. Pinel Act in 2020, presentation of the Pinel Act
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