Investing in new real estate in France with the Pinel Law is a very popular with investors wishing to build up their assets and reduce their taxes. The Pinel system makes it possible considerably reducing taxes over 6, 9 or 12 years, or up to €63,000 in savings. The city of Nice, one of the top 5 most populated urban areas in France, offers great opportunities for rental investment.
Investing in new buildings with the Pinel law
According to an Ifop survey, conducted in June 2017 by the investment specialist Idéal-investisseur, a net monthly salary of €2500 is sufficient to invest with the Pinel system. This makes the acquisition of real estate accessible to a majority of people.
Conditions to benefit from this tax advantage:
- The location of the housing must be in an eligible area: The housing must be located in an area where rental demand is high. The areas defined by decree are as follows: zone A bis (68 municipalities of Paris, Hauts-de-Seine, Yvelines, Seine-Saint-Denis and Val-de-Marne), zone A (other cities in the Paris region, Côte d'Azur, Swiss border areas, etc.) and zone B1 (large provincial cities).
- Maximum purchase price of the property: 300 000 € and 5 500 € / sqm.
- New or heavily renovated real estate.
- The property must be held in full ownership (no dismemberment possible except in the event of the death of the spouse).
- It must be rented bare (without furniture) within 12 months of its completion or purchase as the tenant's principal residence.
- The owner must undertake to rent this property for a minimum period of 6 years, with the possibility of two extensions per 3-year period. For 6 years of rental, the lessor benefits from a tax reduction of 12% of the purchase price, 18% for 9 years and 21% for 12 years.
- The rents and resources of the tenant, at the time of signing the lease, are capped by decree. In Nice, the rent ceiling is estimated at 12.59 € / sqm and the resource ceiling from 37,126 € to 106,431 € (according to loi-pinel-infos.fr).
Example of Pinel investment: For the purchase of a property at €150,000 rented over a 12-year period: your overall tax reduction is €31,500.
Investing in Pinel law in Nice
Located between the sea and the mountains, Nice is a city where life is good. Its pleasant climate, its natural and cultural assets make it a popular city. In particular, there are 4 million visitors each year.
Located in the Pinel A eligible area, Nice is one of the top 5 most populated urban areas in France. It attracts many pensioners but also students, which makes a rental investment in new buildings attractive. The University and the Nice-Sophia Antipolis science park welcome more than 30,000 students each year.
Its international business districts and its position as the second largest tourist city in France also revitalize the city.
In this seaside metropolis, housing demand is still as high as ever and the emergence of many new real estate projects, boosted by exceptionally low real estate loan rates, makes it a widely acclaimed area.
Discover all the real estate in Nice and the properties for sale in the Alpes Maritimes on www.meretdemeures.com.