Why buy an apartment or a house and renovate it?

Buying a property to renovate is a unique adventure, full of challenges and opportunities. Whether you dream of an apartment in the city center or a charming house to reinvent, The acquisition of a property with work offers the chance to create a place that suits you and to make a smart investment. Buy a property to renovate allows you to negotiate the selling price downwards, to benefit from attractive financial assistance and, in the long run, from a nice added value. But be careful, for this dream to come true, it is best to be well prepared! In this article, find out what you need to know before engaging in the first Stage of this real estate purchase.

The advantages of buying a property to renovate

Buying an apartment or a house and doing some work on it offers several advantages. This allows:

• to take advantage of a good location
• To negotiate the selling price downwards
• to arrange the interior of the property as you see fit
• Ofincrease real estate value and realize added value on resale

Take advantage of a better location

If you are looking for a prime location in the city center or a particularly profitable rental investment, acquire a property with work may prove to be a wise choice. Indeed, recent properties, often built on the periphery, cannot compete with the charm and practicality of well-located old housing.

Where to buy is even more important if you are considering buying to rent. In general, old properties have the advantage of being close to public transport, shops and other amenities. Whether in the eyes of young professionals or seniors wishing to avoid using a car to get around, a renovated property in the city center is much more attractive.

Benefit from a lower selling price

Because of the renovations to be planned, old properties are often offered at more accessible prices than new or recently renovated properties. This difference can represent a significant saving, sometimes 10 to 20% cheaper, or even more if the renovation work is important.

Notary fees for an old property are higher than those for a new property (7% to 8% against 2 to 3%). That said, the price of renovation work is not taken into account in the calculation of notary fees, which can represent a significant saving on the overall cost of the real estate project.

Arrange the interior according to your tastes

‍Buying a property to renovate offers you great freedom to transform the space and create a home that really suits you as you wish. You can design each room according to your personal taste and think outside the box by avoiding reproducing the classic configurations that are seen everywhere. In this way, you create a cocoon that looks like you, a refuge after a long day at work or a place where you are proud to welcome your loved ones.

The objective of the work is to “reveal the potential” of housing by ensuring a balance between originality and practicality.

If you lack ideas or want a boost, call on Kyka! Our interior design studio is here to help you design a unique space with you, in line with your preferences while adding that special touch that can make all the difference.

Increase the real estate value of the property

By carrying out work, you increase the attractiveness of your property. Unlike a new home, the real estate value of a property to be renovated can increase considerably, which results in an attractive capital gain if you decide one day to resell it.

For example, it is particularly interesting to carry out work that improves the DPE score because the energy performance of a property has a significant weight on its value.

If you are considering a rental investment, Buy a property to renovate also makes it possible to avoid certain pitfalls in the new rental market, such as rent caps. In the case of an old property, you have more freedom to set the amount of the rent, except in certain areas where the rents are regulated, such as in Paris, Lyon or even Marseille (among others). However, even with these constraints, a renovated property often remains more attractive and profitable in the long term.

With Kyka, you are supported by real estate professionals at each stage of your real estate project:

1. Real estate hunt : our project managers help you find and negotiate the selling price of the property of your dreams,
2. Architectural design : our interior design studio helps you determine the most interesting work to do,
3. Carrying out the work : the launch and monitoring of the renovation are ensured by one of our project managers,
4. Layout : we help you find and install the most suitable furniture for your project,‍
5. Resale : if you decide to resell your property, we are in the best position to help you maximize your added value. Photos, publication of ads, visits... we take care of everything.

My experience with this team has been exceptional. My architect fully understood my expectations and the project team was always attentive. My project was delivered on time and the end result is fantastic. I am very satisfied with the service received.
Lyrod Levy

What you need to know before buying a property with construction

The purchase of real estate requiring work attracting more and more buyers. However, if the renovation is poorly anticipated, this real estate purchase can become a source of stress, with financial and technical unforeseen events. Here are three tips to know everything you need to know before buying an apartment or a house:

1. Familiarize yourself with real estate diagnostics
2. Inspect the home and plan the work to be done
3. Promote the quality of materials and equipment

Learn about real estate diagnoses

Above all, the evaluation of the property involves the analysis of real estate diagnoses which provide valuable information on its general condition. These diagnoses make it possible to anticipate the work to be carried out and to better understand the extent of the site.

Here are the most common real estate diagnoses according to the type of property:

• Energy Performance Diagnosis (DPE) : Mandatory for all homes, it assesses the insulation of the property as well as its energy consumption.
• Diagnosis: Carrez law : It measures the exact area of the apartment, excluding non-living areas such as those where the ceiling height is less than 1.80 m.
• ERP diagnosis (State of Risks and Pollutions) : Indispensable to provide information on the natural, technological or pollution risks to which the property could be exposed.
• Termite diagnosis : Required in risk areas, it is valid for six months and allows the presence of these xylophagous insects to be detected.
• Asbestos diagnosis : Mandatory for goods built before July 1997, it provides information on the presence of this dangerous material.
• Lead diagnosis : For buildings built before 1949, it detects the presence of lead in paints.
• Electricity and gas diagnosis : Mandatory for electrical and gas installations over 15 years old, they are valid for three years.‍
• Sanitation diagnosis : If the property has a non-collective sanitation system, this diagnosis is essential.

Inspect the home and plan the work to be done

During the visit, it is essential to carefully inspect all aspects of the house or apartment, from the basement to the roof. Do not overlook any detail: condition of the walls, insulation, carpentry, electrical and sanitary installations. It is important to know the Questions to ask when viewing an apartment or a house in order to avoid unpleasant surprises after the purchase.

To facilitate this inspection, consider preparing a checklist of things to check in the apartment or house. Feel free to take photos during the visit.

It is strongly recommended to be accompanied during the visit of a property, especially if work is to be considered. By signing a research mandate, you can benefit from the experience and the more technical perspective of a professional. At Kyka, our real estate hunters are trained by an interior designer in order to be able to identify what can be improved (or not) and to estimate the budget for the work to be done during a visit.

Finally, keep in mind that depending on their complexity, the duration of renovation work can take several months. This time frame must be taken into account, whether you want buy your main residence or rent the property. In addition, do not forget to include a safety margin in your budget to deal with possible unforeseen events, which are almost inevitable in renovation projects.

Promoting quality

It can be tempting to cut costs by choosing cheaper materials or equipment. However, opting for quality materials is often more profitable in the long run.

Indeed, low-end materials can lead to recurring problems, even disasters, which will cost you much more to repair. By choosing durable and efficient materials, you reduce the risk of disasters that can affect the aesthetics and value of the property.

To guarantee the comfort of the occupants and the sustainability of the home, it is better to invest in materials, equipment and manpower with a good quality-price ratio, or even high-end.

If you do not have experience in renovation or if you do not feel able to manage a construction site, it is recommended that you use a renovation company or qualified craftsmen. Of course, this represents an additional cost, but it assures you that the work will comply with current standards and that you will benefit from solid guarantees, in particular thanks to the ten-year guarantee from craftsmen, which covers possible construction defects.

To find out more about the tailor-made support we offer, make an appointment with one of Kyka's project managers.

I have just purchased my second property and Kyka took care of everything from A to Z.
From research to work, the architect managed to transcribe my need as I imagined but better!
Thanks again, I highly recommend it!
Adrien BALIKDJIAN

Existing aid to finance renovation work

To reduce the investment associated with Buying an apartment or a house in need of work, several financial arrangements exist, such as:

• The Zero Interest Loan (PTZ) for first-time buyers
• The Eco-Loan at Zero Rate (eco-PTZ)
• The conventional loan
• MaPrime Rénov'
• Energy Saving Certificates
• The home savings loan
• The tax deduction thanks to the land deficit
• Exemption from property tax

The PTZ for first-time buyers

The Zero Rate Loan (PTZ) is a State aid intended for households with modest incomes who want Buying your first property. This loan makes it possible to finance up to 40% of the purchase and the work, with no interest to be repaid, provided that the amount of the work represents at least 25% of the total purchase cost.

In addition to this, the PTZ covers a wide range of works, such as:

• thermal and sound insulation,
• energy renovation,
• space planning,
• improving accessibility.

It is an ideal aid to transform an old home into a modern cocoon, while limiting the financial weight of the project. The loan is repayable over a period of up to 25 years, and can be combined with other loans.

Eco-loan at zero interest rate (eco-PTZ)

Unlike the PTZ, theEco-loan at zero interest (eco-PTZ) is open to a wider public, including not only owner-occupants, but also landlords.

This loan aims to finance energy improvement works in main residences; eligible works include in particular the insulation of the roof, exterior walls, the replacement of windows or the heating system.

The budget allocated can vary from €10,000 to €30,000, depending on the extent of the work, with a repayment period of up to 15 years. To benefit from this loan, it is imperative to entrust the work to companies recognized by RGE (Recognized Environmental Guarantor).

Conventional loan

The conventional loan is another interesting financing solution for buyers of real estate with work to be done. It covers up to 100% of the cost of the operation, including work, with repayment periods ranging from 5 to 35 years. No income criteria are required, making it an option open to everyone.

Many works are eligible for a conventional loan: this ranges from energy improvement to interior design, including the expansion of housing.

This loan can also be combined with other grants such as PTZ or eco-PTZ. Its main advantage lies in its great flexibility and the absence of restrictions on household income; but be careful to compare bank offers before making a commitment.

MaPrime Rénov'

Since 2021, the energy transition tax credit (CITE) has given way to MaPrime Rénov', an aid that facilitates the carrying out of energy renovation work for all owners, whether they are occupants or landlords. Insulation, ventilation or even the replacement of outdated boilers can be financed by this bonus.

Its amount is calculated based on the applicant's income and the expected energy gain through the work. This assistance makes the most expensive renovation projects more accessible. However, it is important to meet certain spending limits to maximize assistance.

Energy Saving Certificates (CEE): the help of energy suppliers

Les Energy Saving Certificates (CEE), commonly known as “energy bonuses”, are a system set up by the State to encourage energy suppliers to help their customers save energy. This assistance can take various forms: from a simple bonus to support in carrying out an energy diagnosis, including loans at subsidized rates.

Nearly 200 types of work are eligible, ranging from wall and roof insulation to the installation of more efficient heating systems. To benefit from these subsidies, it is necessary to go through RGE certified companies and the home must have been built for at least two years.

Home savings loan

If you have a Housing savings plan (PEL) or a Housing Savings Account (CEL), you can take out a loan to finance buying and renovating a main residence. This loan can go up to €92,000, with repayment terms extending over 2 to 15 years.

It is a good option for those who have taken the time to save and now want to invest in improving or expanding their home.

Rental investment: deduct certain works from taxes

If you Buy a property with works To rent it, know that it is possible to deduct certain work expenses from your taxes thanks to the property deficit mechanism. In concrete terms, the costs incurred to rehabilitate or improve a rental property can be deducted from your property income and thus reduce the taxable amount.

The works concerned are those aimed at maintaining the property in good condition, without however changing its layout or structure. This includes renovating the roof, replacing the heating system or repairing electrical installations, for example.

Exemption from property tax

Finally, some municipalities offer a temporary exemption from property tax for owners carrying out energy renovation work. Depending on the local authorities, this exemption can be total (100%) or partial (50%) for five years.

To benefit from it, the total amount of the work exceeds €10,000 to benefit from it, and it is necessary to apply to the tax service. Once the five years have passed, a new application can only be made after a period of 10 years.

Examples of homes renovated by Kyka

The 95m² of Valentin in La Muette

In Paris, in the La Muette district, Valentin purchased a typical Haussmannian apartment of 95m². Originally designed with rooms in a row, this project required a real overhaul in order to adapt to the modern lifestyle.

The authenticity of classical elements, such as moldings and fireplaces, has been enhanced by contemporary touches, offering a perfect symbiosis between past and present. Each piece exudes elegance while integrating practical solutions for everyday life.

The 32m² of Bertille in Batignolles

In this attic apartment, we have combined the two original rooms with a separate service bedroom to recreate a real cocoon.

Benefiting from three magnificent balconies, the 32m² enjoy a beautiful light. The whole thing has been redesigned around a vision of the 70s and its bright colors.

The 26m² in Perrine's artist studio style

Perrine bought a 26m² and Kyka renovated it in an artist's studio style, inspired by the colorful works of Henri Matisse and the mythical Villa Majorelle in Marrakech. In this compact space, every detail has been designed to maximize visual effect and functionality. The walls feature vibrant colors, with intense blues reminiscent of the famous “Yves Klein”, creating a unique and dynamic atmosphere.

To separate the bedroom from the living room while maintaining the omnipresent luminosity, a sliding glass door was installed, allowing both rooms to take advantage of natural light while maintaining elegant and subtle privacy.