The most attractive to invest in Duflot cities

(MarketWatch)-invest in Duflot or not? Many people ask the question since the entry into force of this device that 18% of the investment allowance offers but in turn imposes restrictions in terms of rent and the tenant resources.You see clearly the money & (successful)-based simulations of average prices (MeilleursAgents.com) and the average rent (noise), as recorded in Paris and in 16 provincial cities: Nice, Lyon, Bordeaux, Toulouse, Nantes, Toulon, Lille, Marseille, Montpellier, Rennes, Grenoble, Dijon, Strasbourg, Le Havre, Angers and Le Mans.An enclosure-type 63 m (2)For each city has calculated the net rate of return for accommodation in Duflot and net rate of return for rented accommodation on the classic way (at the price of the market with tax reduction of 30% on rents in micro-foncier). Given the targeted investor profile, a marginal rate of 30% maintained. No resale value has taken over, the idea is to compare the servie profitability annually by any type of rental.These simulations were made by deducting rent 15% tax and taking as a reference a 63 m (2), housing, which comes with a point of balance. In Duflot vary m (2) rent ceilings depending on the surface. They can be increased above the formula 0, 7 + 19/S, where S is the surface in m (2) and increased under the 63 m (2).Little interest in ParisIn Paris offers the Duflot obviously little benefit. Rents are capped at 16.52 million (2), at a price of the market of 24.10 euros. About tax reduction, it does not play completely, because it is limited to an investment of 300,000 euros (too low for the capital) and a ceiling of 5,500 euros (2) m (33% lower) on the average price of the market.For accommodation of 63 m (2) offers the Duflot according to our calculations, a surplus of 0.23%, once profitability net of the tax benefit. With 50 m (2) the accommodation is the gap somewhat higher with more generous rent ceilings. However, it is limited to 0.5%.The "carrot" offered by the Duflot appears therefore very low in Paris to know that the investor must proposals are homes to tenants in capped income, so a priori more risky.Differential of 0.6% to 1.4% in the province ofIn the County, rent ceilings are also lower than the price (except on le Mans). The average (19%), however, is much less important than in Paris (31%). For a purchase of 63 m (2), the tax deductions can also play full because investment remains below the 300,000 euros and the price per m (2) nowhere exceeds 5,500 euro. The tax reduction can therefore reach annually 2% of the investments (18% spread over 9 years).In these circumstances, can estimate the annual yield of a Duflot between 4% (Lyon) and 5.74% (Le Mans), with an average of 4.6% on the 16 cities studied.In comparison, it would be a classic investment in these cities average 3,68 per cent of values depending on the agglomeration of 2.85% (Nice) to 4.35% (le Mans).The tax benefit so here to compensate for the limitation of the rent prices and offers even end up a surplus of 0.9% average return. The difference is in Montpellier, for example only 0.6%. On the other hand, it exceeds 1.2% in Toulon and Nice and reaches the same 1.4% at le Mans.By to simulate a lease for an area of 50 m (2) Finally, the profit of profitability offered by the Duflot even to 1.1% thanks to a bit more generous rent ceilings. NET performance than fluctuates between 4.2% and 5.75% (Lyon) (Le Mans).A profitable investment for which pay a lot of taxesIn short, the Duflot profitable in the province. Each case is determined, however, it is up to each investor to make his own calculations on the basis of the good and referred to their personal tax situation (including his tax bracket).In this context, it should be noted that these simulations are valid for households can play at full tax reduction. The Duflot focuses on those who pay high taxes. It is indeed not necessary for a tax reduction of 6,000 euros if you "that 2,000 euros to pay taxes". It is also important to integrate into its calculations of profitability the capping of tax loopholes, set at € 10,000 per year, and to which the Duflot is subject.Od-© 2013 www.boursier.com