Old real estate: investing for the future

Old real estate appears to be the best form of investment. The lights are all green for people who want to buy right now. Indeed, with the pandemic and recent investment decisions, real estate is a pillar value. Prices are falling steadily, and interest rates are at their lowest. Whether in corporate or residential real estate, buying seems a good solution. But what are the advantages of buying old, as new programs multiply? New real estate seems to have unquestionable assets to attract investment.

Old real estate, an advantageous choice

Buying old can be questioned, especially when the buyers are first-time buyers, or professionals looking for premises for their business. Indeed, many enjoy settling in a completely new space, and becoming the very first occupants. No work to be planned, no trace of previous occupants. Yet investing in old real estate has more advantages than turning to new. Costs are much lower, there are many more choices about location, and the catalogue offers is much more important than on new programs.

Indeed, with the old real estate, it is easy to find references located in the heart of cities, especially in large metropolises like Bordeaux. As buildings and housing already exist on the sites, only the law of supply and demand intervenes. It is therefore an interesting secondary market, which allows to recycle only the existing, without building. This allows the future purchaser to benefit from an ideally located space, in the heart of an active environment.

Former housing real estate facade
With old real estate, the buyer to invest in the heart of the city.

For new real estate, on the other hand, this law does not apply. To build, future buildings must have a buildable location. A property now not found in the heart of cities. This therefore favours the construction on the periphery of these areas, much further from the interests. As a result, new neighbourhoods are emerging, but are also more expensive to buy. Indeed, old real estate is overall 20% to 30% cheaper than the new with equal area. To encourage investors to bet on the new, developers are proposing tax benefits, such as the Pinel Act.

The price of old real estate is therefore fairer for investors, who want to be able to discover a property by visiting it.

Projecting yourself into the new, enjoying the old real estate

Old real estate appeals to new investors for the range of choices that the market offers. The possibility to choose the location of its property, its area… These are all advantages that appeal to investors, as does the stamp of the place. Because with the old real estate, there are buildings of all styles, of all eras. Some with a loft spirit, others with a higher ceiling height… Some with exposed stone, Bordeaux style, or with wood. So many choices that appeal to buyers.

In addition, before buying, the purchaser has the opportunity to visit the property, physically or on a virtual tour. This allows him to discover the environment of the property, to meet the neighbors and to exchange with them… But also to project yourself directly into the place. An undeniable advantage of old real estate. One thing that is not possible when you want to invest in the new.

Because when a buyer is looking for a new home, he must make his choice on plan or catalogue. Housing is not yet built, and is therefore a more difficult projection. All the more so since you have to be patient before you can move into a new home. The construction lasts several years, while for the old real estate, the installation is possible as soon as the keys are handed over.

Sale new housing plan
Buying in new real estate is always on plan.

Investing in old real estate also has an environmental advantage. Indeed, by buying old, the dwelling is already existing. There is no need to build everything, unlike new programs, the price of which depends on the production line. In addition, by investing in old real estate, buyers contribute to the limitation of urban sprawl. This preserves green spaces from buildable land, while encouraging the preservation of the existing one.

Encouraging energy retrofit

Thus, taking care of the energy renovation of dwellings from old real estate allows to have a cheaper housing … More environmentally friendly, and adapted to the new standards. The purchaser can arrange it as he pleases, transform it.

Laws such as the Denormandie Act encourage investment in old real estate. Indeed, it indicates that in the event that purchase of old property for renovation and/or rental… The owner receives a tax reduction of up to 21% of the price of the property. This initiative allows to renovate old real estate, but also to revitalize the city centers, while limiting urban sprawl. Urban sprawl encouraged by the emergence of new real estate programs.

Sources:

5 good reasons to invest in old real estate in 2021, Monetivia release of March 3, 2021

Denormandie Act, information of 2021

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