Investing in a student residence that provides a variety of services, enables you to not only benefit from the advantages of the Censi-Bouvard non-professional furnished rental status (LMNP), but also to make an investment with complete ease of mind, thanks to it being managed entirely by a specialised professional.
In this guide you will find :
Our residences offer serveral types of accomodation such as, studio apartments, or one or two-bedroom apartments. They enable you to make a low-cost investment, often with a high return.
“Les Belles Années is a privileged partner of the Valeur et Capital group, which has specialized in real estate investment for over 35 years, and manages rigorously selected student residences with high potential:
Thanks to their prime location, these residences meet a strong need for housing adapted to student life, in a context where rental demand is high. The accomodation is therefore easily rented and represents an attractive investment.
Buying one of our apartments enable you to make your assets grow without the constraints of rental management, because you sign a commerical lease with the manager of the serviced residence. The manager becomes your tenant and pays you the rent for the entire duration of their lease commitment.
Investing in a property managed by Pure Gestion Etudiants allows you to benefit from the advantages of the Censi-Bouvard law. In fact, owners who commit to renting out the property for, at least, 9 years benefit from various opportunities, in terms of tax exemption.
This type of investment enables you to benefit from a tax reduction of up to 11% of the cost price for 9 years. In addition to this advantage, you can also recover the VAT on your acquisition.
The status of landlord of a furnished apartment enables you to reclaim the VAT under certain conditions :
→ Acquisition of a new property offering a number of services.
→ Entrusting the operation of the property to a professional.
→ Be subject to VAT
→ Operating under a commercial lease for a period of 20 years.
If you stop operating the property before the 20 years is up, you will have to reimburse the VAT pro rata for the remaining years. As well as benefiting from a guaranteed and regular additional income, investing in a student residence therefore enables you to obtain a significant tax deduction.
* Total number of residences and accomodations by the end of 2022.
* According to the provisions of article 39C of the CGI. Maximum profitability excluding tax is not guaranteed and is indicative and non-contractual. Based on a rent excluding VAT/ sales price excluding VAT excluding furniture, for studio apartment at €162,900 excluding tax (excluding furniture) and an annual rent of €6,273.48 excluding tax, subject to available stock. Any economic operation of this type involves risk. Rent paid once commercial lease is provided. In any event, rent collection cannot be guaranteed by the implementation of a commercial lease.
*Assumption of rent collection over a continuous period of 20 years (annual indexing of rents of 1% per year). Within the framework of an investment in LMNP (non-professional furnished rental). The depreciation of the price of the walls of the property and the furniture, according to the conditions of article 39C of the General Tax Code, is deducted from the rents received. This makes it possible to generate tax and social security free rental income over a period that could exceed 25 year, as in the example below.
Example of an acquisition for an amount of €149,880 including VAT (including furniture) with the LMNP (non-professional furnished rental) tax framework; Option to recover VAT (rate of 20.00%) on the purchase price, i.e. a total investment amount of €130,445.56 after advance on acquisition costs of €5,545.56 and on the basis of a purchase excluding tax of €124,900; Assumption of a personal down payment of €5,545.56; Bank financing: Monthly loan instalments of €625.91 (including insurance).
Based on a loan that can be spread over 20 years at a fixed rate of 1.4% (average rate certified by the brokerage company with 3 national banks and credit institutions on 01/04/2022) + death and disability insurance of 0.3% (Average rate certified in 2022 for an investor under 30 years of age), total loan cost of €25,773.2 (including insurance, excluding interim interest); Initial annual rent provided for, under the commercial lease agreement, of €4482.24 excluding VAT, indexed to the benchmark index (indexation assumption of 1% per year), i.e. an average monthly rent of €407 net, over 30 years; Average monthly charges of €17 (excluding property tax), in a student residence. You are committed to a loan and it must be reimbursed.
Check your repayment capacities before committing.**