What is the Pinel device and how to benefit from it?
In this article I will tell you what is the Pinel device and how to benefit from it. The Pinel law is a mechanism that permits tax exemption in the event of investment in rental properties. The premise behind property rent investment lies in purchasing the house in order to rent it out. If the home you purchase is a brand new property situated in an area that is eligible to be covered by the law of pinel in Bordeaux the buyer is able to gain tax advantages to financing the purchase. This is because the Pinel statute is an estate tax law. The tax reduction will be proportional to the cost of the lodging and the amount is contingent on the period of rental of the property.
What are the goals of this organization?
One of the primary goals of one the main goals for pinel program is to encourage the development of housing. In fact, if the government has enacted this scheme to help investors invest in real rental properties it is aiming to encourage the building of housing in certain areas within the French territory. This includes areas where the demand for apartments for rent is greater than the available units. Insufficient to meet this need, the State invites residents to build homes in these areas in order to create new property in Bordeaux .
Additionally, by establishing the maximum rent as well as an income limitation for tenants who could reside in the Pinel homes , the government will ensure that the rental scheme is targeted towards those with higher incomes who can’t afford social housing. But who are having difficulty finding a suitable home? The search for accommodation in the rental market is getting more easy and more secure.
There are many advantages to the Pinel device
1) A remarkable tax reduction similar to the Duflot law The Pinel system permits you to reduce your income tax by letting you rent your home. The lawmaker gives investors the option of renting their home for 6 years and extending this time frame by 2 consecutive intervals of 3 years, resulting in 12 years. Each rental period there is a reduction in tax percentage, which is applied to the value of the property you purchase 12 percent for a period of rental of 6 years and 18 percent for a period that is 9 years. 21 percent for a period of 12 years.
2) The possibility of leasing your home to your family Possibility of renting your home to your family is a different feature that is part of Pinel law. This is a major benefit in comparison to that of the Duflot law. Indeed, the property owner is able in the event that his residence is eligible under the law and is subject to certain conditions, to rent out his property to his ancestral relatives or descendants who are not part of the tax-paying household.
3) A rental commitment that is flexible in duration with a range of 6 – 12 years
4) The possibility of conserving the benefits from the scheme through investing in the SCPI Civil society to invest in real estate investment. In fact, you can have the chance to receive a discount which is calculated based on 100 percent of the amount for which you’ve paid;
5) Maintenance and charges are low as new homes are purchased with the obligation of observing certain requirements, such as the consumption efficiency of the building, or its compliance of the building to RT2012 standards;
6) Chance to invest in all kinds of homes in areas with the highest demand for rental