The charm of old properties is undeniable. Investment in old real estate is often perceived as a safe and profitable financial investment. Are you interested in investing in an old property in France? First, you should understand the benefits but also take the disadvantages and risks into consideration. Here are some tips from our real estate experts.
Attractive tax benefits
Tax reductions, zero interest loans ... as a homeowner, you can benefit from many tax advantages under certain conditions for the acquisition of an old property. If you are buying a luxury property in the city centre, you can take advantage of the Malraux scheme benefits (up to 30 percent reduction on investment) or the property deficit system. It allows the buyer to benefit from a tax reduction for a loan for renovation work.
The disadvantages of the old real estate
Purchase price of an older property can be advantageous over that of a new property, however older homes may sometimes require expensive renovations. Insulation, plumbing, walls renovation ... these works can represent a significant cost. The condition of common areas can also affect the value of the property. A dilapidated entrance can have a negative impact on renting an apartment in the form of expectations of lower rental fees, and can also generate higher common fees. In addition, the notary fees are higher (up to 8 percent of the transaction) for the acquisition of an old property. Additional costs are expected, which are more or less consistent depending on the condition and location of the property.