With the new reduction in Pinel tax exemption rates in 2024, it is becoming increasingly difficult for investors to turn to real estate to reduce their tax burden. However, in the first case, they can turn to the Loc’Avantages system. The principle is simple: the lower the rent offered, the greater the income tax reduction for the investor.
But the benefits of this system – too little known to the general public – extend beyond the mere tax deduction. Help with renovation. Guarantee of unpaid rent for free. Bonus 3000 euros. The certainty of restoring your property in perfect condition… Loc’Avantages has many advantages that will please investors without losing too much rental profitability. OUR top 7 reasons to resort to it.
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Reason No. 1: you choose the amount of the rent discount yourself
The Loc’Avantages system allows you to offer a property at a discounted rent in exchange for tax benefits. It is you who decides on the amount of the discount by proposing the rent, which is in the amount 15%, 30% or 45% lower than market rent, unlike Pinel in new buildings, where rent ceilings are decided by the prefect. Let us remind you that in order to maintain a solid rental profitability, it is more appropriate to locate in cities where the market price is close to the discounted rent price.
Reason number 2: you pay less income tax
The Loc’Avantages system allows you to take advantage of deductions on your income tax form in exchange for a reduction in rent. So if you decrease your rent at 15% above market ratesyou benefit 15% tax reduction. If the rent is reduced by 30%, tax reduction will be 35%. Finally, if you entrust your accommodation to an association responsible for renting it to very uncertain groups in the rental agency and that rent is 45% below market rates, tax discount is 65%. The reference market rent considered for the system is the rent recorded by the Anil Rent Observatories network. For smaller municipalities, they are determined by decree. The amount of the tax credit is calculated based on the gross income received by the lessor. For example, if you rent accommodation in Bordeaux with 2 rooms of 40 square meters for 554 euros per month (i.e. 15% less than market prices), the amount of the tax reduction will correspond to 15% of the gross income from housing or 997.2 euros using the following calculation: (554 x 12) x 0.15 = 997 euros.
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Reason number 3: profit from the 3000 euro bonus
The Loc’Avantages system is particularly interesting for investors who decide to mediate the rental. The tax reduction can thus reach 65% if the rent is reduced by 45%.. In addition, the investor receives a bonus of up to 3,000 euros for renting an apartment with a smaller area. or exactly 40 square meters.
Reason number 4: your rent is guaranteed by the state
The Loc’Avantages system allows landlords to use Visale’s unpaid rent guarantee. State GLI that covers you up to 36 outstanding monthly installments no excess and no waiting time. Since Visale is completely free, it does not burden your gross profit.
Reason number 5: get your work funded
To be eligible for Loc’Avantages, the offered accommodation must have an E energy label in the energy efficiency diagnosis. By renting with the system, you can improve the energy efficiency of the property and have part of your work financed by Anah. Loc’Avantages gives you the right to do so special support of up to €28,000 for major renovation support and €15,000 for energy renovation under certain circumstances. You also benefit from the support of a construction specialist who will help you with your administrative procedures. Additional support to support at national level (MaPrimeRenov’, super land deficit, CEE etc.) and local support. Enough to significantly reduce the use of your personal savings and benefits as you reclaim your assets from the efficient and more liquid housing market.
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Reason number 6: return your home to perfect condition
Minimum commitment period s the Loc’Avantages system lasts for 6 years. During this time, damage may occur to the property which could reduce its value once it is back in your hands. However, the system ensures that accommodation is restored no matter what happens. You are therefore sure to find a property in perfect livable condition.
Reason number 7: invest ethically and profitably
Through this system, investors make ethical real estate investments that pay off. Placing affordable, energy-efficient housing on the market benefits struggling tenants. If, thanks to the support, you also carry out energy renovation work, you significantly reduce the carbon footprint of housing and contribute to the renovation of the real estate fund. Enough to increase the chance of making a capital gain on the property when it is sold.
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