As part of your rental investment, SOCOREN group can assist you with a comprehensive approach :

• Resarch land.
• Development of the project adapted to the land and to your wishes.
• Research funding.
• To agree  with you the level of finishes including external works.

WHY INVEST IN RENTAL PROPERTY ?

• Build up assets.
• Preparing for retirement.
• Benefit from a safe investment.
• Reduce the tax in the case of eligible investment.
• Buy for leisure and buy for retirement after the rental period.

WHY A HOUSE ?

85 % of French want to live in a detached house. Therefore the rental and resale are facilitated.

WHAT IS THE DIFFERENCE BETWEEN TRADITIONAL INVESTMENT AND RENTAL INVESTMENT ?

In the case of traditional investments : life insurance, books, PEL etc… only the investment made by you is profitable.

In the case of individual house, placement est à triple effet :

• Your monthly personal investment (the difference between your payment and rent).
• The rent (tenant participation in the constitution of your savings).
• The tax savings (if any).

Les % depends on each case studied.


A new tax incentive scheme to encourage investment in rental property called the «Scellier» law was launched in France on 1st january 2009. On 1st january 2010, this tax reduction scheme will replace all the other schemes for a period of 3 years.

CHARACTERISTICS OF THE « SCELLIER » TAX REDUCTION

The principal characteristics are :

• From the 1st january 2009 until the 31st décembre 2010 :

The scheme gives the opportunity to claim a tax reduction equivalent to 25% of the property purchase price for 9 years (on purchases up to 300 000 €). So the investor could reclaim up to 75 000 € on investments made before the 31st decembre 2010, regardless of the marginal rate of taxe.

During this period of 9 years, the rent that can be charged for the property depends on a maximum limit calculated on the basis of the location of the property (Robien maximum limit) and not the tenant income conditions.

• For 2011 and 2012 :

When the investment involves a housing that does not meet the conditions for awarding the label BBC 2005, the tax reduction is reduced :

•  
  • 13 % for housings purchased or built in 2011
  •   9 % for housings purchased or built in 2012

These rates are increased when the taxpayer acquires a housing new or one in the course of completion or make a housing built whose level of overall energy performance is superior to the one imposed by the legislation in force.

For these housings that meet the conditions for awarding the label BBC 2005, the tax reduction rate is :

•  
  •   maintained at 22 % for housings purchased or built in 2011
  •   reduced to 18 % for housings purchased or built in 2012

THE GEOGRAPHIC ZONING

The application of this new device is reserved for homes located in zones 1,2 and 3 corresponding to zones A, B1 et B2 zoning established for the purposes of depreciation «Robien» and «Borloo».

Investments in zone C can not benefit from the new tax cut.

COMMITMENT

The investor agrees to rent housing for a principal residential use for a minimum of 9 years.

THE BASIS OF CALCULATION

The tax cut is calculated on the purchase price of housing in the limit of 300 000 €.

The amount of the acquisition is not capped and is not subject to capped price per m², neither to a maximum surface.

CONDITION

The reduction is garanted for the year of completion of the housing and it is charged to the tax owed for that same year, then to the tax owed for each of the following 8 years at the rate of one ninth of its total amount for each of those years.