The Pinel device in the old now exists under two shapes. The first is called ASL (free trade union association) and the second VIR (sale of building to be renovated. We take stock of the advantages of each of these two montages.
Pinel, an important tax exemption tool
The device, which has already proven itself for several years, makes it possible to maximize the yield of a property investment. The VIR version (sale of building to renovate) is particularly promising. With this legal arrangement, the investor can in particular benefit of a tax reduction in a simpler and more secure way. Angelys Groups, a company specializing in rehabilitation of buildings old in the city center, helps us to to understand the challenges of this assembly as well as those of ASL.
Let us recall from the outset that the Pinel renovated in the old east, on a certain number of points, similar at New Pinel. With this device tax exemption, Indeed, the rental investor can benefit from a tax reduction of 12% if he puts his accommodation in rental for six years. With a rental period aged nine or twelve, he is entitled to 18 or 21% reduction respectively. From terms to be respected there is also a capping of investment to the tune of €300,000. The price of procurement of possession is he too capped, at €5,500 per m² – including costs and costs of works.
Therental investment also assumes that the tenants are chosen based on their resources and that the rents are capped.
The advantages of ASL and VIR
These two montages are the variations of Pinel in the old. The free trade union association seduced a certain number investors, in particular because it is doubly advantageous from a tax perspective. Indeed, not only does the investor benefit from the tax reduction classic under the Pinel system, but it can maximize the yield of its operation thanks to the land deficit – up to €10,700 annually for expenses can be dissociated such as the costs of the works maintenance, repair or improvement of housing.
The investors are also numerous to embark on the sale of real estate has renovate. With this mechanism, an operator work has the investor a rehabilitated home turnkey. The contract of sale offer to the transaction its legal security.
The different protections which enjoys the investor are comparable to those provided by a contract relating to a sale in a state of future completion. Indeed, whether in the context of a VIR or a VEFA, the operator is required to deliver a accommodation new and in good condition, and the investor benefits of the two-year guarantee and some ten-year guarantee.
The New Pinel VEFA and the Pinel renovated VIR are also advantageous on a tax level. But for benefit, it is essential to respect the legal deadlines. The investor begins to enjoy the tax deduction from the day of delivery of his accommodation, although other deadlines may be taken into account.
As part of the renovated Pinel VIR, the delivery of accommodation must be carried out no later than December 31 of the second year following the signature of the notarial deed. The contract must indicate this delivery date in order to ensure legal security of the operation. In practice, the time between the signing of the notarial deed and the end of works is at least two years and must not exceed two years and eleven less. After delivery of the goods, the investor must respect a minimum rental period of twelve months to be able to claim the tax deduction under the Pinel system.
As part of the new Pinel VEFA, the investor is also required to put his accommodation in rental for at least twelve months to be able to benefit of a tax reduction. However, compliance with this deadline is not always easy in practice. Let us remember that between the authentic deed – generating fact of the investment that the tax administration takes into account for calculate the time limit – and the delivery of accommodation, an initial period of maximum thirty months may elapse. However, the date of signature of the deed at the notary is not necessarily that of the beginning of the works. It is even common for these to begin only a few weeks or months later.
The Pinel VEFA is a promising option, but there is a risk for the investor not being able to respect the deadline imposed by law and therefore not being able to claim a tax deduction.
It appears that the renovated Pinel VIR is a simpler and safer choice. The accommodation which is the subject is located in the city center and is the subject of works of rehabilitation : those are assets which allow find easily tenants and therefore to respect the famous twelve months of rental.
