La Rochelle For sale appartement
studio - 21 m² - € 83 000
Information & Taxation
Real estate investment allows you to build wealth and supplement your income with a dual benefit:
- Rents finance part of the property and are indexed.
- The property appreciates in value.
- The real estate market remains stable, unlike speculative financial investments.
Points to consider:
- The purchase price in relation to the market and local rental demand.
- Rent defaults and difficulty evicting tenants.
- The burden of property management, maintenance, costs, risks, and damage caused by the tenant.
- The heavy taxation of rental income.
The advantages of acquiring a property within a classified tourist residence:
- A prime location with a high occupancy rate, guaranteeing security and asset value.
- A reliable management company that distributes net rents, regardless of expenses and management fees.
- The possibility of recovering all or part of the VAT.
- Benefit from the advantageous tax regime for furnished rentals, which allows for total or partial tax exemption on rental income.
- The possibility of occupying the property during your holidays without the constraints of a second home and access to a platform offering over 90 seaside and mountain destinations in France.
The advantages of tax treatment for furnished rentals under the Non-Professional (LMNP) and Professional (LMP) schemes:
- Unlike traditional rentals with property income tax, furnished rentals, which fall under the BIC (Industrial and Commercial Profits) income category, allow, in addition to standard expenses such as property tax and loan interest, the deduction of depreciation: 85% of the property's value over 30 years and 100% of the furniture's value over 10 years. (See comparison below).
- In the case of furnished rental properties (LMP), it is also possible to benefit from a tax reduction, exemption from the French wealth tax (IFI), and exemption from capital gains tax on real estate.
The Pierre & Azur approach:
- Our properties for sale benefit from prime locations with high added value.
- Our mandates are signed at a fair price and benefit all parties.
- The property is rented and maintained by a renowned management company; the rent is net of charges (except for property tax) with the option of owner occupancy.
- Tailored advice: we support our investors in the financial analysis and the choice of the right legal status based on their situation and needs.
To learn more, contact us!
Comparative Study: Land Investment vs. Furnished Rental
Simulation for the purchase of one of our apartments for sale in Roquebrune-Cap-Martin
| Key Parameters |
|---|
| Sale price: €228,000 (€223,000 + €5,000 for furniture) |
| Tax bracket: 30% income tax + 17.2% social contributions (total: 48.6%) |
| Annual rental income: €10,000 net of charges and management fees |
| Annual expenses: Property tax €650 + Accountant €350 + Insurance €250 = €1,200 |
1) Cash Purchase (No Loan) – 15-Year Projection
| Land Income (€) | Furnished Rental (€) | |
|---|---|---|
| Annual rental income (×15) | 10,000 × 15 = 150,000 | 150,000 |
| Loan costs | 0 | 0 |
| Deductible expenses | 1,200 × 15 = 18,000 | 18,000 |
| Deductible depreciation | 0 | 99,770 |
| Taxable rental income | 150,000 – 18,000 = 132,000 | 150,000 – 18,000 – 99,700 = 32,300 |
| Tax (48.6%) | 132,000 × 48.6% = 64,152 | 32,300 × 48.6% = 14,446 |
| Net income received | 132,000 – 64,152 = 67,848 | 132,000 – 14,446 = 117,554 |
| Avg. monthly net income (over 15 yrs) | €377 | €653 |
* Simulation under constant conditions
| Advantage of Furnished Rental vs. Land Income |
|---|
| Years 0–15: + €49,706 | Years 15–30: + €47,276 | Total over 30 years: + €96,982 |
2) Purchase with a 15-Year Amortizing Loan at 3.5% (incl. insurance)
| Land Income (€) | Furnished Rental (€) | |
|---|---|---|
| Annual rental income (×15) | 10,000 × 15 = 150,000 | 150,000 |
| Loan costs | 70,000 | 70,000 |
| Deductible expenses | 1,200 × 15 = 18,000 | 18,000 |
| Deductible depreciation | 0 | 99,770 |
| Taxable rental income | 150,000 – 18,000 – 70,000 = 62,000 | 150,000 – 18,000 – 99,700 – 70,000 = 0 |
| Tax (48.6%) | 62,000 × 48.6% = 30,132 | 0 × 48.6% = 0 |
| Net income received | 132,000 – 30,132 = 101,868 | 132,000 |
| Avg. monthly net income (over 15 yrs) | €565 | €733 |
* Simulation under constant conditions
| Total Cost Over 15 Years (Loan – Rental Income) | Land Income (€) | Furnished Rental (€) |
|---|---|---|
| Net cost (loan repayments – rental income received) | 195,852 | 165,720 |
| Advantage of Furnished Rental vs. Land Income |
|---|
| Years 0–15: + €30,132 | Years 15–30: + €50,400 | Total over 30 years: + €80,532 |
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