In what cities to invest in Pinel rental?

Purpose: to find a rare pearl. To invest in a risk-controlled Pinel system, the investor must focus on a city that is dynamic enough to guarantee high rental demand, but prices remain reasonable to allow for long-term capital gains. Problems identified 6 cities that match this profile. It is better to forget about the hypercenters of large cities and focus on their municipalities on the outskirts or medium-sized cities. All of them are located in zone B1, where the rental ceiling of Pinel is 10.51 euros per m2. “This ceiling covers the weighted surface of the dwelling, including the outbuildings (half of the space) for half of their surface,” recalls Mark Guillermo, a wealth management adviser at Quintésens.

In selected cities, Pinel’s threshold is just below market rents. But this gap, and hence the disadvantage, is growing in the heart of the cities. In addition, programs in Lyon, Bordeaux or Rennes do not allow full exemption from the tax invested, as prices lead to exceeding the required ceilings (property less than 300,000 euros, less than 5,500 euros per year). As for the framework in some of the municipalities of Іle-de-France, in Lille, Lyon, Villeurbanne, and soon in Bordeaux and Montpellier, this does not affect activities, as rents remain higher than in Pinel.

VILNEV-D’ORNON

This is a good compromise: Villeneuve d’Ornon is ideally located south of Bordeaux, close to the Atlantic and Toulouse motorways, and an 18-minute tram ride from Saint-Jean station. In ten years, the town, the center of which is undergoing major restructuring, has become a real transfer market for Bordeaux. At € 4,500 per m2, prices for new buildings remain more affordable than in central Bordeaux (€ 6,000 per m2), good conditions. The 2 and 3 bedroom apartments are the most popular among young couples and families, students prefer Talence, close to the University of Bordeaux, Kedge BS and numerous engineering schools. In addition, the turnover in these premises is more limited than in the studios, which minimizes the free space for rent.

As for the price, the Pinel ceiling of 44 m2 with a balcony of 9 m2 costs 552 euros. “This is 8% less than the free rent, which would be about 600 euros, but this difference is largely offset by tax benefits. Conversely, in the center of Bordeaux, the difference between the market and Pinel is 20%, “said Stefan van Huffel, Managing Director of Net Investissement. Note: Bordeaux must limit the rent for a year. Gradually applied to new rents, this structure will eventually reduce the market, which will still remain above the Pinel threshold. “From this point of view, Bordeaux is not the best solution for investing in rent, neither in the old nor in the new, except to focus on purely inherited investments,” said Stefan van Huffel.