Why invest in a new apartment in Bordeaux? | Metropolis of Bordeaux

A wonderful cultural heritage, student life, business, communication, an ever-growing housing stock… Bordeaux is also and above all a city that has never stopped modernizing at the urban level, with the arrival of many new residents every year.

Investment in new property development, Bordeaux is the location of choice for those looking to make a rental investment. Some devices also allow you to reduce taxation, such as Pinel’s law, in addition to the ability to build assets. Discover in this article all the advantages of investing in a new apartment in Bordeaux.

Reduced notary fee

This is one of the first advantages of new real estate. While in the market of old objects the transfer duty can reach 8%, in new objects they are divided by 4 and amount to approximately 2-3%: a saving of several thousand euros from the total purchase price.

Indeed, when you invest in a new apartment or in VEFA, the price is indicated in TTC (incl. VAT) and is limited to land registration tax and notary’s fee.

Key tax benefits

To encourage taxpayers to invest in new property, the government introduced tax exemption schemes. These laws allow individuals through rental investments to be able to reduce their taxes, as with Pinel’s Law or the Chenzi Bouvard system.

The Pinel Law allows tax credits of up to €63,000 over 12 years. As part of the investment in Pinel, the tax reduction rates vary depending on the duration of the lease commitment chosen:

  • 12% for 6 years of lease;
  • 18% for 9 years;
  • and 21% for 12 years.

Please note: these discounts will be reduced from 1Er January 2023 In order to continue to enjoy the benefits of maximum rates, the invested objects must meet several requirements:

  • Apartments, the permission for the construction of which was issued before 1Er January 2022
  • Apartments whose standards meet RE2020 environmental standards.
  • Apartments meet certain standards regarding use, orientation and area.

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The possibility of creating a quality legacy

In addition to the tax benefits and regular annuities that a rental investment can offer, the benefit is the ability to create a real estate legacy. By investing in a new apartment in Bordeauxyou provide your descendants with a quality legacy.

According to Pinel’s law, the investor can dispose of his property as he sees fit after the end of the chosen lease period (6, 9 or 12 years). Then several options are available to him:

  • live in the property as your main residence;
  • resell property and receive capital gains;
  • rent property, no longer dependent on Pinel ceilings;
  • use real estate as a secondary residence;
  • bequeaths property to his descendants.

Cost reduction due to construction standards

As already mentioned, the new apartments are designed according to strict standards in terms of environmental regulations (RT2012, RE2020). These requirements take into account the quality of heat and sound insulation, energy consumption and production…

Several labels are also creating building standards to shape “more sustainable” real estate programs. In addition to being more environmentally friendly, these products have the advantage of being less energy-intensive. For the tenant, as well as for the investor, the costs are divided into 2…

State aid for the purchase of the main place of residence

For the purchase of a primary home, several government grants can allow first-time home buyers to benefit from financial support… as long as the property is new.

Among the devices we are thinking about:

  • A loan with a zero interest rate (PTZ) that can finance up to 40% of the purchase of real estate in a new building, subject to resources.
  • A 0% loan from Bordeaux Métropole that can finance a house or a new apartment in Bordeaux up to 10,000, 15,000 or 20,000 euros depending on the number of people in the family.
  • The first housing passport, which is still intended for first-time buyers planning to purchase their main residence in Bordeaux, if the property in question is limited to between 3,000 and 6,000 euros per m² (depending on the number of people in the family).
  • Controlled price increases that were created to make it easier for households with moderate or intermediate incomes to own a new property. Some new apartments in Bordeaux therefore, it is possible to offer at a price per m² lower than in the traditional market (20-30% discount).
  • Reduced VAT in the ANRU zone: Some new homes can benefit from reduced VAT (5.5% instead of the usual 20%). Help for first-time buyers can save buyers several thousand euros on the total purchase price. However, the property must be located in an area known as “ANRU” (National Agency for Urban Renewal).