You prefer old buildings to new ones, which you find impersonal and standardized. On the other hand, buying an old property often involves a great deal of work. But in the end, it can be a very good deal.
Cheaper to buy
Without going so far as to say that you'll be spoilt for choice, it's a fact that there's a wider and more varied range of older homes on offer than new-build properties. Both in terms of style and location (which is usually in or very close to the heart of the city). You can even find exceptional properties at very affordable prices, even in large conurbations. The existence of all these opportunities has a direct impact on prices. The variety of properties on offer means that you can compare and negotiate prices that are 20% to 30% lower than new-build, for equivalent services.
Good for your taxes
If you're planning to rent out your property after all the renovation work has been carried out, you'll be doing yourself a world of good. In addition to the rents you'll receive, you'll be able to deduct a "déficit foncier" from your income.
A property deficit exists when the property expenses (repairs, maintenance, interest, property tax, etc.) incurred by the owner exceed the rental income received. Subject to certain conditions, this deficit can be deducted from overall income, up to a limit of 10,700 euros per year, provided the property is let until December 31 of the 3rd year following the deficit.
Potential capital gains
After renovation, embellishment, extension, etc., the property you buy will increase in value, and you can look forward to substantial capital gains on resale.
Budget-friendly
Older homes are often synonymous with renovation work. But it's not just new-builds that benefit from financial aid. This is also true for older homes, especially if you undertake renovation work thanks to the energy cheque:
- This scheme is designed for households in a situation of energy insecurity, i.e. spending more than 10% of their budget on energy bills. It is awarded on a means-tested basis, based on the income tax return filed each year with the tax authorities. The energy voucher can be used to pay all or part of your energy bills, as well as part of your home's energy renovation costs, such as thermal insulation or the installation of a condensing boiler;
- CITE(Crédit d'impôt transition énergétique - energy transition tax credit), which allows you to reduce your taxes by carrying out certain types of work;
- reduced-rate VAT (5.5%) for certain energy-efficiency improvements to homes over 2 years old;
- assistance from energy suppliers under the Energy Saving Certificates (CEE) scheme, in the form of vouchers, discounts on energy bills, etc.
- assistance under the Anah"Habiter mieux" program
- Eco-PTZ. With a maximum value of 30,000 euros, the Eco-PTZ helps finance work that either constitutes a "package of work", or enables the home to achieve a minimum "overall energy performance".
Marie-christine Ménoire