Although it has benefited thousands of individuals since 2014, it will be finalized at the end of the year.
As 2024 draws to a close, major financial assistance is about to disappear and is causing panic in the real estate sector. You may have already read it between the fine lines of real estate advertisements or through the attractive arguments of salespeople: the end of this aid, announced on December 31, 2024, is pushing developers to increase discounts.
Promotions are popping up everywhere in the hope of convincing the last hesitant people. We are talking here about price reductions, reimbursed monthly payments or even special offers reserved for those who finalize their purchase before the end of the year. But before you rush into it, it’s essential to keep some key elements in mind. Indeed, these promotions with a lot of advertising must be considered with a certain perspective. It is easy to be seduced by significant discounts, but whether it is a rental investment or a classic property purchase, caution is required. The quality of the property, its location, the strength of the local market and compliance with rent ceilings must remain your priorities.
Did you guess? This is the end of the Pinel system, i.e. this income tax reduction, granted to individuals who acquire and rent, for a certain period, new housing. However, the latest report from the Court of Auditors, published in September 2024, made a point of highlighting certain abuses in the use of this system. The observation is clear: although this system has made it possible to boost new real estate, it has not always favored the creation of sustainable intermediate housing. Which explains, in part, why the government decided not to extend it beyond 2024.
For investors who have already taken the plunge or who will do so before December 31, 2024, don’t panic. The tax benefits obtained will continue to apply. In practice, this means that even after this aid disappears, investors who signed a contract before the deadline will be able to continue to benefit from the tax advantages until 2036 in certain cases. Which offers a certain security for those who have invested or who are about to do so.
The rental commitment rules, rent ceilings and conditions for obtaining the tax reduction will remain valid for all contracts signed before the end of the year. As you will have understood, for those who have not yet taken the plunge, it is therefore urgent to study the latest opportunities, because once this date has passed, investment conditions could radically change.