Real estate: what to do with your home after the Pinel law?

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Once your commitment to the Pinel scheme has expired, generally after 6, 9 or 12 years, several options are available to you for the proper management of your accommodation. You can first continue to rent it in order to benefit from a rental income. Another option is to resell the property and collect an interesting capital gain for future investments or, finally, you can decide to keep the accommodation to make it your main or secondary residence.

If the owner wants to continue to rent the property, after the flow of its investment in Pinel law, it will be necessary to renew the bare lease to put it on the traditional market, under the property income regime. The property is no longer subject to the respect of the rent ceiling, nor to the conditions of resources for the choice of the tenant. So now is the right time to align with market prices! However, the law imposes to spread the revaluation of the rent over time, up to 10% per year. The owner may continue to deduct rental charges and any loan interest from the property income received. Be careful, however, the investor will have a mechanically higher taxation than 10 years ago since the net property income (rent – deductible charges) is now taxed at the progressive scale of income tax, as well as withholdings. social (17.2%).

Why not sell your property which was subject to the Pinel regime? After receiving rental income for a maximum of 12 years, you will make an interesting financial gain, with a property that is still in decent condition and meets environmental standards. The profit made can be reused for a new project. You can sell it with or without a tenant. But be aware that occupied, the property will lose between 15% and 25% of its value because buyers looking for their main residence are excluded from the sale. As far as possible therefore, it will be more judicious to sell it unoccupied. Don’t forget to notify your tenant six months in advance for a holiday for sale, the term of the 3-year renewable lease can be reached at an expiry of 6, 9 or 12 years.

The investor in Pinel law may want, in the end, to take full advantage of his apartment. It is therefore necessary to give leave to the tenant in place for “legitimate reason”, such as the fact of wanting to live in the accommodation as a main residence or to accommodate a member of your family there. The registered letter must be sent six months before the end of the lease and the law requires that the repossession be justified: the lessor owner must indicate in writing how the repossessed accommodation corresponds to his personal or family needs. The typical case is, for example, a two-room apartment bought in Montpellier in Pinel. You stop renting to accommodate your child when he begins his secondary studies. In addition, you keep the possibility of a pleasant pied-à-terre in the South during the holidays.

SOURCES :

https://www.rennesimmo9.com/actualites/investissement/l-apres-pinel

https://edito.selogerneuf.com/conseils-d-experts/investir/investissement-locatif-faire-l-immobilier-neuf-apres-fin-pinel-article