Investment being essential today to guarantee financial stability, rental investment raises many questions. Is this really a wise choice? What are the risks and how can we anticipate them?
This article, the result of an exclusive investigation, aims to demystify investors' fears regarding rental investment. We will explore the different facets of this type of investment, highlighting its advantages and disadvantages, in order to help you make an informed decision. SO, Is rental investment really to be avoided? ? Stay with us to find out the answer.
Current state of the French real estate market and rental investment
The real estate market in France has shown an encouraging recovery since the summer of 2024, with sales up 5% in the third quarter and a 10% increase in goods on hand. However, rental investment is struggling to benefit from this boom. Investors, although still interested in this type of investment, are cautious.
Several obstacles hinder their commitment, notably high real estate prices which complicate access to profitable goods, as well as the risks of unpaid rent which give rise to concern.
To this is added taxation perceived as heavywhich weighs on potential profits. These challenges are slowing down rental investment, despite the sector's continued appeal for those seeking to diversify their assets.
Motivations and obstacles to rental investment according to the French
A survey carried out by Address and OpinionWay highlights the main reasons motivating rental investment in France.
For 27% of respondents, the objective is to generate regular monthly income, while 19% favor the creation of secure assets.
However, several obstacles are holding back investment projects. High property prices are a barrier for 42% of French peoplewhile 39% fear the risk of unpaid rent.
Tax pressure, particularly the increase in property tax, concerns 33% of respondents.
Finally, 26% of people surveyed are concerned about energy renovation costsa major issue due to increasingly strict standards. These obstacles show the challenges facing real estate investors.
Investors' expectations and solutions proposed by the Address
Real estate investors are waiting concrete measures from the government to protect their investmentsincluding guarantees against unpaid rent, a reduction in property taxes and more favorable taxation on rent.
To address these concerns, l'Adresse has launched “l'Adresse Assure”, an insurance specially designed for landlords.
This innovative solution offers coverage of up to €100,000 for unpaid rentwithout time limit. It also supports property damage costs up to €20,000as well as unpaid rent in the event of illegal occupation, with coverage of up to €35,000.
The objective is to secure rental income and reduce risks for investors.
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