Do you intend to make a rental real estate investment in Pinel law in Bordeaux? Discover the advantages and conditions of this advantageous property tax system.
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What is Pinel law?
The Pinel law is a win-win device, both for the taxpayer and for the state. Its principle: you are going on a rental real estate investment (new housing) that you rent for a required period. In exchange for your real estate purchase, you benefit from a tax advantage that translates into form of income tax reduction.
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The rental term of new housing, unlike the Duflot scheme replaced by the Pinel law, can be 6 years (minimum), 9 years or 12 years. The impact of the Pinel law on the real estate market has been so positive that the device is regularly extended.
The Pinel law gives the right to eligibility under conditions :
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- The accommodation must be new or in VEFA;
- Housing must comply with certain environmental standards;
- The property must be rented for a minimum period of 6 years;
- The rental must respect the tenant’s rent limits, and resources;
- The tax deduction is proportional to your commitment: the longer the rental period, the more advantageous the tax reduction;
- You can make up to 2 acquisitions per year per person in a limit of €300,000 per property, with a maximum of 5,500 euros per square meter of living space;
Investing in Pinel law in Bordeaux
Bordeaux Métropole today enjoys an unparalleled influence. Tourism, studies, trade, industry… Bordeaux is not left behind and continues to attract thousands of inhabitants every year. In search of a real quality of life , populations are increasing rental demand.
The Pinel law responDS to this need by decongestating the real estate area in tension. Thanks to the revival of the new construction sector , new housing is available. An ideal for any newcomer to Bordeaux.
The advantages to invest in Bordeaux are also obvious: with a strong rental demand in a city where it is definitely good to live and good to invest, your real estate purchase you ensures profitability.
Good to know : for the coming year (2021), the purchase of the property must take place before 31 December 2020.
Building a heritage with the Pinel law
Whether it is to build up a wealth, to ensure additional income or to prepare a retirement , your real estate purchase of new apartment with the Pinel law in Bordeaux is an investment that ensures a tax exemption.
You secure your family home while being sure to benefit from a favourable tax reduction. The tax reduction in Pinel law is organized as follows:
- Tax reduction of 12% of the amount of your purchase for 6 years of rental;
- Tax reduction of 18% of the amount of your purchase for 9 years of rental;
- Tax reduction of 21% of the amount of your purchase for 12 years of rental.
By opting for an investment in new housing in Bordeaux or Bordeaux Métropole, you choose a reliable investment in stone.
Pinel eligibility: quality new housing
By buying a new home or in VEFA (Sale in state of future completion), you choose to trust a sustainable construction that meets the requirements of the latest environmental standards .
Did you know that ? You can rent your home to a family member, either ascending or descending. A plus for housing a student, for example.
The very high number of students in Bordeaux makes the percentage of tenant households there very high: insurance to find a tenant for your new property. Count on the urban, tourist and commercial dynamism of Bordeaux for support your investment.
What are the tax advantages of Pinel law?
You have investment projects and you want to do it in stone, so that you can bequeath it in a few years to your children. So you are very logically interested in the Pinel law. But what tax advantages can be obtained thanks to the Pinel law ? The first advantage, not least, is that by investing in eligible housing, you will be able to benefit from a very nice tax reduction. However, this reduction is conditioned by two factors:
- the amount invested
- the duration of the rental.
Indeed, the Pinel law obliges the owners to rent this property for a period of 6, 9 or 12 years. You will be able to get a 21% tax deduction by renting it for 12 years. Another advantage of this device (which was not the case with the old Dufot law) is that it will allow you to rent your property to a member of your family. You can therefore provide a family member with low-rent accommodation, while having a tax reduction. Be careful, your family member should not be attached to your tax home, but you can, for example, rent an unfurnished apartment to your student nephew in Paris. Finally, the aim of this scheme is to propose new property in areas that are sorely lacking them. The then Housing Minister also allowed future owners who wish to benefit from it, to make it easier to obtain a bank loan at attractive rates , even if your starting capital is very low, see none. You should then without too many problems be able to repay it, thanks to the rents collected even if they are fixed by the Pinel law. Don’t forget not that you will have made in addition, substantial savings with the tax reduction granted.