What is the Pinel system and how can you benefit from it?
There Pinel law is a system which allows tax exemption for a rental investment. The principle of real estate rental investment is the fact of buying a house to rent it. If the home purchased is a new property located in an area eligible for the Pinel law in Bordeaux, the investor can benefit from a tax advantage to help finance their purchase. There Pinel law is therefore a property tax law. The tax reduction granted is proportional to the price of the accommodation and its amount depends on the rental period of the accommodation. \n\nRead also: How to become an independent real estate negotiator?\r\n
What are its objectives?
\nOne of the main objectives of the system Pinel is to promote housing construction. Indeed, if the government has put in place this investment aid in the real estate rental, it aims to stimulate the construction of residences in certain regions of French territory. These include areas where the need for rental apartments exceeds the supply. Unable to meet this demand, the State therefore encourages individuals to build in these places as fornew real estate in Bordeaux. \n\nFurthermore, by setting a maximum rent and an income limit for tenants who can live in these houses Pinel, the government ensures that this rental offer is aimed at high-income people who cannot access social housing but who have difficulty finding accommodation. Finding accommodation on the current rental market is becoming more practical and reassuring. \n\nRead also: 4 good reasons to prefer new real estate\r\nSome advantages of the Pinel device
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- An exceptional tax reduction: Like the Duflot law, the Pinel system allows you to reduce your income taxes in exchange for renting your property. The legislator gives investors the possibility of renting their property for 6 years and extending this period by 2 periods of 3 years to reach a rental period of 12 years. For each rental period, there is a tax reduction rate, applied to the price of the property purchased: 12% for a rental period of 6 years 18% for a rental period of 9 years. 21% for a rental period of 12 years; \r\n
- Possibility to rent to your family : The possibility of renting to your family is another novelty of the Pinel law. This is an important advantage compared to the Duflot law. Indeed, the owner can, if his accommodation meets the eligibility criteria of the law and under certain conditions, rent his property to his ancestors or descendants outside the tax household; \r\n
- A flexible rental commitment period : variable between 6 and 12 years; \r\n
- Possibility of maintain the benefits of the system by investing in the SCPI; civil society for real estate investments. Indeed, for example, you have the opportunity to benefit from a reduction which is calculated on 100% of the amount you have subscribed; \r\n
- Low costs and maintenance, because new housing is purchased on the obligation to respect a certain number of conditions including the low consumption of the building or even compliance with RT2012 standards; \r\n
- Opportunity to invest in housing of all sizes in markets where rental demand is high \r\n
