Renovated old real estate: ethical and profitable

The october 13, 2020

There are several ways to invest in real estate while optimizing the taxation of your wealth.

Today with ecological and environmental awareness there is a tendency of society and politics to favor the investment which will have the least negative impact on the environment and ecology.

Indeed, the construction of new housing has a negative impact on the environment since there are more than 27% of greenhouse gas emissions and construction represents 60% of the carbon footprint of a new building.

The new construction industry has been involved in safeguarding the ecosystem for years. Grenelles environmental laws have imposed compliance with increasingly drastic construction standards. A new environmental standard will add a low carbon component from January 2021.

New real estate is no longer a priority for the state, which is why in the coming months we will see a slowdown in support to the construction of new homes through subsidies. It will favor investments whose main objective will be renovation and restoration. This will have a positive impact on the environment, such as reducing our carbon footprint, but also reducing the sprawl of the outskirts in order to reduce the negative consequences on agricultural land.

In fact, the rehabilitation of housing corresponds more to current environmental issues. This is why grants are put in place to help owners renovate their property. This is the case of the VAT lowered to 5.5% for energy renovation, subsidies from the national housing agency, as well as the eco PTZ, that is to say the zero rate loan. extended until 2021.

With this in mind, some are turning to devices more inclined to favor ecology, such as the Denormandie and Malraux devices, which allow rehabilitation while providing tax exemption.

In fact, investing in the old is therefore ethical and profitable, especially since the introduction of the Denormandie system. It allows you to benefit from tax advantages related to the performance of work. The finance law for 2020 has adapted this system to extend it to the entire territory of a municipality and no longer only to city centers.

The system is extended for one year, so the tax reduction will apply to investments made from January 1, 2019 to December 31, 2022.

If you want to take advantage of this opportunity and benefit from advice tailored to your goals, we invite you to request a consultation. Our Wealth A7 advisors will support you in your project!

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Article by : CAMILLE LESPRILLIER

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