Successful real estate rental investment thanks to the Pinel law

Posted by on Dec 10, 2018 in Corporate Real Estate | 0 comments

Do you want to invest in a property? Under certain conditions, you can benefit from the Pinel law system. Designed to expand the housing offer, it gives you access to a tax exemption.

What is the Pinel law?

Introduced on 1 January 2015, the Pinel law gives access to a tax reduction. To do this, you must dedicate this accommodation to rental. The tax benefit is calculated according to the length of the rental period you undertake to respect. After this period, you decide to continue the rental or to live in the accommodation. The Pinel law is in force until the end of 2021.

Tips for a successful real estate rental investment

To succeed in your Pinel real estate investment, there are a few tips to follow:

– choose the location of the property carefully: the Pinel law divides France into 5 zones, depending on the degree of tension in the real estate market. It is recommended to invest in large cities where rents are not too high (zone B1).

– focus on the type of accommodation: if you are investing in a student city centre, it is better to choose a studio or T2 rather than a T5. The outlying districts are more inhabited by families. A 3 or 4 piece is a better choice.

What are the advantages of the Pinel law?

The Pinel law gives rise to a tax credit. This reduction is calculated according to the price of the property and the duration of the lease. To obtain the tax exemption percentage, you have to take the rental period, then multiply it by two. Thus, if you rent your home for 9 years, you are entitled to an 18% discount.

law pinel

With the Pinel Act, the government intends to increase the rental market. It helps you to invest in real estate, reducing costs. It is an ideal solution to invest and become a homeowner!

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