Tax exemption on one side, attractiveness of the location of the other: choosing between the new and old is probably one of the most important steps in your rental investment. To help you choose, focus on the benefits of the new and the benefits of the old.
The advantages of the new
Invest in a new home has many advantages. The main ones?
- The nine is favored from the tax point of view. Investing in a new home, since 2013 and the law Duflot (replaced by the law Pinel), to enjoy a tax exemption of up to 18% the amount of the investment (capped at € 300,000). New houses and apartments are more subject to tax exemption schemes launched by the government (Duflot, Censi-Bouvard, etc.)
- A new housing is also a functional housing. Housing to the standards in terms of security, thermal insulation and sound insulation.
- Investing in a new apartment is investing in housing that has equipment, private and collective, in perfect condition.
- Thanks to good thermal insulation, the energy bill is lightened; thanks to a perfect condition, no big work is to be considered in the short term... In other words, current expenses are lower for new housing than for old housing.
The advantages of the old
Despite all the advantages offered by the new, the old attractive remains and also offers significant benefits.
- On the same site, in the same neighborhood, old housing is cheaper than new housing. A price difference that can sometimes reach 20 to 30%. As a result, with a lower initial investment, older dwellings offer a rental yield more interesting.
- The new is attractive thanks to a significant tax exemption. But you should know that real estate to renovate, which therefore involve repair, maintenance or improvement, can also subject to a tax reduction on income from land. A reduction that is calculated in addition to the discount generally obtained on the purchase price of the property, and due to the need to undertake repair work.
- Last but not least, the former offers a wider choice. Better still, this wide choice is proposed in a better location, namely in the city center or in the historic center, areas generally the most requested for rent.
Read our article: investing in rental real estate, which interests?