Put in place in September 2014, the law Pinel is one of the many devices developed by the government to help the French public to engage in real estate rental. This law gives the interested a host of privileges, including the opportunity to pay less tax. However, this system is subject to several constraints and has a few pitfalls that individuals need to know to avoid making a bad investment. Here are some tips that may be useful to you if you envisagezd’invest with this legislation.
Carefully select the location of the property
The choice of the area to invest is one of the points that should not be overlooked in order to invest with the device Pinel. In effect, this act applies, fully, communities are strained, that is to say, the regions where demand for rental housing exceeds the available supply. These locations are divided into 3 sections, namely :
- the Geneva French, and the cities of the Côte d’azur and the Ile-de-France (area A),
- Paris and 29 towns in the surrounding area (area aa),
- the large crown of paris, the DROM-COM (départements and regions and overseas communities), cities numbering more than 250 000 inhabitants and municipalities where rents are high (zone B1).
In addition, the geographical location of the property also has a significant impact on the attractiveness of the residence. Actually, the tenants are captivated by property located close to public transport, schools, markets, and services to the person. This is due to the fact that these housings make our life easier. In addition, individuals are also attracted by the dynamism and the development of cities, because these cities offer more of a chance to have jobs. As well, select the location of the accommodation will help you avoid the risk of rental vacancies.
Find an accommodation that meets a variety of criteria
The choice of the residence to lease, is also an element that is worth considering when investing with the device Pinel. On one side, the law requires that the residence that you will rent honors several conditions. First of all, the property must be new and acquired before the end of the year 2021. Then, it is necessary that the residence meets the energy standards and thermal effect (RT 2012 and BBC 2005). Finally, the amount of the purchase must not exceed a threshold of 5 500 €/m2, with a ceiling of investment of 300,000 €/year.
From another side, the property must meet the needs and expectations of tenants. In fact, buy an apartment in a locality where taxpayers want to live in homes is a bad investment. To find the ideal property, the best option is to resort to the service of a real estate professional.
Strictly comply with the terms and conditions of the rental
Once you have found the perfect accommodation, you need to rent it out by following the rules imposed by the law Pinel. In the first place, it is necessary that you rent without furniture your for 6, 9 or 12 years. In the second place, your property should serve as a principal residence of the tenant. To finish, you are required to respect the ceilings of the device on the rent and resources of the occupants.