An old apartment listed below market price, an energy performance rating of G, and insulation work to budget before any rental: this is the type of situation that awaits real estate investors today. The regulatory framework has changed, tax incentives have tightened, and obtaining credit is no longer as easy.
Investing in real estate in 2024 remains a solid lever for building wealth. The decisions made from the outset condition profitability over ten or fifteen years.
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Energy-inefficient housing and rental investment: the trap of low prices
We regularly come across properties rated F or G sold at a significant discount. The temptation is strong, especially for a first investment. The problem is that properties rated G are excluded from rental since January 1, 2025. Buying an energy-inefficient property without factoring in the real cost of thermal renovation in the financing plan means locking up capital without receiving rent for several months.
Before signing, we systematically request quotes for insulation, window replacement, or upgrading the heating system. The cost of the work must be added to the purchase price to calculate the real profitability. A property listed at an attractive price but requiring heavy renovation can ultimately cost as much as a property already up to code, without the period of rental vacancy.
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Investors targeting this segment rely on property deficit to absorb some of the renovation expenses. This mechanism allows for the deduction of renovation costs from rental income, and then from overall income within certain limits. It’s a coherent strategy, provided one has a sufficiently long holding horizon.
This type of fiscal and wealth arbitration can be explored further on the Conseil Invest website, which details the setups suited to each profile.
Real estate financing in 2024: preparing a solid bank application
The era of financing a rental investment without a down payment is over for most profiles. Banks now require a personal contribution covering at least the notary fees and scrutinize the remaining disposable income after all monthly payments.
In practical terms, before looking for a property, one prepares their application as one would prepare a business plan:
- Stabilize bank accounts over the last three to six months, without overdrafts or erratic spending, to reassure the credit analyst
- Calculate the debt-to-income ratio including all ongoing loans, including any car loan or residual consumer credit
- Anticipate the structure question: a traditional amortizable loan remains the most common, but the interest-only loan is coming back into discussions for profiles with savings placed as collateral
The rate obtained depends as much on the quality of the application as on the market. After the decline that began in 2024, rates have stabilized at levels that remain accessible compared to the historical average. However, inflation will need to be monitored in the coming months.
Rental profitability: analyze the local market before gross yield
Displaying a gross yield on the surface is not enough. We often see listings boasting high yields in cities where rental demand is low. The risk of prolonged rental vacancy quickly negates the benefit of a theoretically high rent.
The tension of the local rental market is the first indicator to check. A university town with a constant flow of students, a dynamic employment area with companies hiring, a neighborhood well-served by public transport: these concrete criteria weigh more heavily than a percentage on a spreadsheet.
For a first investment, returns vary on this point, but low-entry formats deserve attention. A parking space in a tight area, a service room in a central district, or shares in a SCPI allow one to confront the realities of rental management without immobilizing too much capital.
Tax strategy after the end of the Pinel scheme
The Pinel and Censi-Bouvard schemes have long structured choices for new rental investments. These schemes have reached their end, which changes the game for investors who relied on tax exemption as the main driver of profitability.
The remaining options are more targeted but no less effective:
- The LMNP status (non-professional furnished rental) allows for the accounting depreciation of the property and furniture, significantly reducing taxation on received rents
- The Denormandie scheme targets renovation in degraded city centers, with a logic similar to the old Pinel but focused on older properties with work
- The property deficit, already mentioned, remains the most direct lever for investors in unfurnished rentals who undertake renovation work
The choice between furnished and unfurnished rental is not just about taxation. Daily management differs: more frequent turnover in furnished rentals, shorter leases, but generally higher rents. Decisions are made based on the city, the type of tenant targeted, and availability for management.
Rental management: delegate or manage yourself
Managing a rental property oneself means responding to calls for a water leak at ten p.m., chasing a tenant behind on rent, and organizing visits between two workdays. Some investors handle this very well, while others underestimate the burden.
Delegated management to an agency typically costs a percentage of the monthly rent, which reduces net profitability. In return, one gains time and limits the risk of administrative errors (drafting the lease, regularizing charges, complying with regulatory obligations).
For a first rental investment, testing direct management for a year allows one to understand the realities on the ground before deciding if delegation is financially justified. Real estate wealth is built on operational decisions as much as on strategic choices, and it is often daily management that makes the difference between a profitable investment and one that falters.