Investing in new rental property

Published on : 08 June 20203 min reading time

Whatever the reasons for investing in real estate, it is certain that there are many advantages to investing in new rental property, provided certain standards are applied in the design of the dwelling.

The advantages of new rental real estate

Of course, a new home means little immediate work to be done. It is possible to rent it as soon as it is delivered and not have to change the appliances for a few years. The novelty of a property is also an asset on the rental market, since it is more easily attractive to potential tenants. Indeed, the property will meet the BBC (Bâtiment à basse consommation) standards, which guarantee low energy consumption and therefore reduced charges for the owner and the tenant.

Another advantage of new rental property can be found at the time of purchase: while the investment is often 20% more expensive than older property, notary fees are considerably lower. On average, they will amount to 2 or 3% of the purchase price, compared to 8 to 10% for the old property.

There are also many financial aids available to facilitate access to new property. The Pinel law, for example, allows first-time buyers to buy a new property to rent it out over a certain period (6 to 12 years), and to benefit from a tax reduction of 12 to 21% during the rental period. The Boulard law also applies to new furnished rental property: an 11% reduction on taxes and the possibility of recovering VAT.

But to take advantage of all these benefits, several criteria must be met, including the application of certain mandatory standards.

Compliance with the PMR standard: a priority for new rental property

Indeed, many rules are imposed during the construction of a dwelling, such as the PMR standard (persons with reduced mobility). Mandatory for many years, it allows a dwelling to be adapted to facilitate disabled access. This standard is based on three aspects: access to the dwelling, the possible circulation inside the property and the practical use of the equipment provided in the dwelling.

It can also be reflected in the width of the doors, which must allow a wheelchair to pass through, or the presence of an elevator in a building with more than three floors. It also applies to switches and outlets, which must be at wheelchair height.

This standard should not be overlooked. When the dwelling is built, it is checked by the DDTM (Direction départementale des territoires et de la mer) which, if it is not complied with, may require modifications within two months, on pain of a fine of 45,000 euros. Furthermore, ignoring this PMR standard means that you lose any tax advantage since the property is no longer considered to be up to standard, which is a mandatory criterion for the Pinel or Bouvard scheme.

The new rental property thus presents a good number of advantages for a future owner, since it allows by the same occasion to constitute a patrimony in a safe haven, and to ensure a serene future.

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