Buying a rental property in 2024 is no longer just about choosing a tax scheme and waiting for the rent to come in. The end of the Pinel scheme on December 31, 2024, the rise in energy constraints, and a tight rental market are reshaping the rules of the game. For those who can read these signals, opportunities exist, but they require a nuanced understanding of the landscape.
End of the Pinel scheme and shift to renovated older properties
For years, the reflex of the novice investor was to buy a new apartment eligible for the Pinel scheme to benefit from a tax reduction. This mechanism will close to new investments at the end of 2024. The direct consequence: sales of new housing for rental purposes have plummeted.
This scarcity of new rental properties creates a structural supply deficit. For investors, the question has changed in nature. It is no longer about asking which tax scheme to exploit in new properties, but how to take advantage of a growing shortage of quality rental housing.
The most concrete answer lies in the renovated older property market. A well-located older property, brought up to energy standards, combines two advantages: a purchase price that is often negotiable (sellers of energy-inefficient properties are under pressure) and a rent supported by rental market tension. You can delve deeper into investment on Immobilier Hebdo to follow the evolution of these market dynamics.
Small, well-located units (studios, T2) in medium-sized cities under rental pressure are particularly well-positioned. The landlord’s negotiating power is enhanced by the lack of supply.
Energy-inefficient properties: profitability and pitfalls of the DPE
Have you noticed that listings for properties classified as F or G are multiplying at rock-bottom prices? This is no coincidence. The owners of these properties are facing increasing restrictions: gradual prohibition of rental, blocking of rent revisions.
For an investor, buying an energy-inefficient property represents a double-edged strategy. The acquisition price is low, sometimes well below the local market. The potential capital gain after energy renovation can be significant.
The pitfall is the actual cost of the work. Poorly estimated energy renovations can negate all the advantage of the purchase price. Before signing, have a complete energy audit conducted by a professional independent of the seller. Check three specific points:
- The level of insulation in the walls and roof, which represents the heaviest expense and determines the transition to class D or E
- The condition of the heating system and its compatibility with a heat pump or network connection, as a complete replacement changes the financial equation
- The co-ownership: in a collective building, work on the building’s envelope depends on the vote of the general assembly, which can block your renovation schedule
The rental yield of a renovated energy-inefficient property often exceeds that of a new property, provided that the renovation budget has been correctly estimated in advance.
Rental strategy in tight zones: LMNP and yield management
The status of Non-Professional Furnished Rental remains one of the most used tax frameworks by individual investors. Its main advantage: the accounting depreciation of the property allows for a reduction, or even elimination, of taxation on rental income for several years.
Why does this status work better in tight zones? Because rental demand is structurally higher than supply. The vacancy rate remains low, which secures the actual yield. A furnished property in a tight zone generates a rent that is several hundred euros per year higher than the same property rented unfurnished.
Property management: to delegate or not
Property management represents a cost that eats into profitability. The fees of a manager are around one month’s rent per year, often with additional relocation fees.
For a first investment or a property far from your home, delegation is justified. For a T2 located in your city, managing the tenant relationship and small repairs yourself allows you to retain several points of yield. Net profitability depends as much on controlling costs as on the choice of property.
SCPI and diversification: complementing a direct investment
Investing in SCPI (Société Civile de Placement Immobilier) does not replace the purchase of a property directly, but it complements it. The principle is simple: you buy shares in a company that holds a real estate portfolio (offices, shops, logistics) and you receive proportional income.
The interest in 2024-2025 lies in two factors. First, SCPI allows for geographical and sectoral diversification without mobilizing significant capital. Second, some SCPIs invested in European tertiary real estate offer a yield that remains competitive compared to direct residential investment.
The main risk concerns liquidity. Selling SCPI shares takes time, sometimes several months. This investment is suitable for a long holding horizon, at least eight to ten years.
- Check the financial occupancy rate of the SCPI before investing: a high rate signals good asset management
- Compare subscription and management fees, which vary significantly from one company to another
- Prefer SCPIs whose portfolio is diversified across several countries and types of properties, to limit exposure to a single market
Taxation of SCPIs
SCPI income is taxed as rental income. For high-income taxpayers, purchasing shares via a life insurance contract allows for more favorable taxation on gains. This setup deserves to be studied with a wealth advisor.
The best real estate strategy in 2024 is not unique; it combines several vehicles: a renovated older property for direct rental yield, SCPI shares for diversification, and constant vigilance on real costs (work, management, taxation). The market rewards those who calculate before buying, not those who bet on an expiring tax scheme.
