In addition to its cachet and the allure that the old stone can have, many investors are turning to old real estate in particular with the aim of obtaining better returns.

Looking at all the data, is this still the case?

The calculation of the gross rental profitability is simple, just divide the amount of your annual rents by the price of the accommodation and multiply the whole by 100. Not surprisingly, the old investment is mainly a winner with this calculation, the prices of acquisition being lower than in the new.

But when we take into account all of the expenses to determine our net profitability, the benefit of older real estate is no longer as significant. For this calculation, all you have to do is subtract from your annual rents the property tax, the non-recoverable charges of the tenant and the management fees if applicable.

But why would the old become less profitable when we analyze net profitability?

It is essentially the charges that significantly reduce profitability because they are generally higher than in new. Also, the certain increase in the property tax planned from 2026 in old real estate, generated by the 2020 finance law, will only accentuate this analysis.

Beyond the net profitability, which may ultimately be equivalent or even less advantageous in the old than in the new, all the additional costs that can be generated by an investment in the old must also be taken into account, in particular the costs relating to the renovation of the condominium (facelifting of the facade, etc.).

In view of these elements, turning to older real estate rather than new real estate in order to do a better deal will not necessarily be the best strategy. Especially since new real estate has several advantages:

• First of all, as mentioned, the charges are generally lower and no major renovations will be expected in the medium term.
• Also, you should know that an investment in new buildings allows you to obtain partial exemption from property tax for 2 years.
• Notary fees are also reduced in new buildings, they are around 3% compared to 8% in old ones.
• But that's not all, new vehicles also have the advantage of being up to the latest sound and energy standards, which are significant advantages for rental.
• In addition, you are also covered by the promoter's two-year and ten-year guarantees which will cover interventions in the event of dysfunction or modifications to the construction within two years or ten years, respectively.

On the other hand, for first-time buyers buying their main residence, the acquisition of a new property also gives access to advantages concerning financing, in particular through the zero-interest loan. Depending on the goods, they may also benefit from controlled prices or lowered VAT.

So, should investing in the old be banned altogether? Obviously not! It will simply be necessary to study the whole project well and especially in which strategy fits your investment: do you want to make a land deficit to limit the impact of land income already generated? Would you like to rent your bare or furnished property? Is this a main residence project, a classic rental investment or a tax exemption investment? Is this property intended to be kept or resold?

Wealth A7, always by your side to bring your desires to life.