Why buy an apartment or house and carry out renovation work?
Buying a property to renovate is a unique adventure, full of challenges and opportunities. Whether you dream of a city-center apartment or a charming house to reinvent, purchasing a property that needs work offers the chance to create a space that reflects your style and make a smart investment. Buying a property to renovate allows you to negotiate a lower sale price, take advantage of attractive financial aid, and ultimately achieve a significant return on investment. But be careful: for this dream to become a reality, it is best to be well-prepared. In this article, discover what you need to know before committing to the first step of this property purchase.
The benefits of buying a property to renovate
Buying an apartment or house and carrying out renovations offers several advantages. It allows you to:
- secure a great location
- negotiate a lower sale price
- customize the interior exactly as you wish
- toincrease property value and generate a profit upon resale
Benefit from a better location
If you are targeting a prime downtown location or a particularly profitable rental investment, purchasing a property that requires renovation can prove to be a wise choice. Indeed, modern properties, often built on the outskirts, cannot compete with the charm and convenience of a well-located older home.
Where you buy is even more important if you are planning to buy to let. In general, older properties have the advantage of being close to public transport, shops, and other amenities. Whether for young professionals or seniors looking to avoid using a car, a renovated property in the city center is far more attractive.
Benefit from a lower purchase price
Due to the renovations required, older properties are often offered at more accessible prices than new or recently renovated ones. This difference can represent significant savings, sometimes 10 to 20% cheaper, or even more if the renovation work is extensive.
Notary fees for an older property are higher than those for a new one (7 to 8% compared to 2 to 3%). That said, the cost of renovation work is not included in the calculation of notary fees, which can represent significant savings on the overall cost of the real estate project.
Customize the interior to your taste
Buying a property to renovate gives you great freedom to transform the space and create a home that truly reflects who you are. You can design each room according to your personal tastes and think outside the box, avoiding the standard layouts seen everywhere. In doing so, you create a sanctuary that feels like you—a refuge after a long day at work or a place where you are proud to welcome your loved ones.
The goal of the renovation is to "unlock the potential" of the home while ensuring a balance between originality and practicality.
If you are short on ideas or would like a helping hand, contact Maison Kyka. Our interior design studio is here to support you in creating a unique space, aligned with your preferences while adding that special touch that makes all the difference.
Increase the property's value
By carrying out renovations, you increase the appeal of your property. Unlike a new build, the value of a property to be renovated can increase significantly, which translates into an attractive profit if you ever decide to resell it.
For example, it is particularly worthwhile to carry out work that improves the energy performance rating (DPE), as a property's energy efficiency has a major impact on its value.
If you are considering a rental investment, buying a property to renovate also helps you avoid certain pitfalls of the new-build rental market, such as rent caps. With an older property, you have more freedom to set the rent, except in certain areas where rents are regulated, such as Paris, Lyon, or Marseille (among others). However, even with these constraints, a renovated property often remains more attractive and profitable in the long term.
With Maison Kyka, you are supported by real estate professionals at every stage of your property project:
- Property hunting : our project managers help you find and negotiate the sale price of your dream property,
- Architectural design : our interior design studio helps you determine the most worthwhile renovations to carry out,
- Renovation work : the launch and monitoring of the renovation are handled by one of our project managers,
- Furnishing : we help you find and install the furniture best suited to your project,
- Resale : if you decide to sell your property, we are best placed to help you maximize your capital gain. From photos and listing ads to viewings, Maison Kyka takes care of everything.
"My experience with this team was exceptional. My architect perfectly understood my expectations and the project team was always attentive. My project was delivered on time and the final result is fantastic. I am very satisfied with the service received."
Lyrod Levy
What you need to know before buying a property that needs work
Buying a property that requires renovation is attracting more and more buyers. However, if the renovation is poorly planned, this real estate purchase can become a source of stress, with financial and technical surprises. Here are three tips to know everything before youbuy and renovate an apartment or a house:
- Get familiar with property surveys,
- Inspect the property and plan the necessary work,
- Prioritize high-quality materials and equipment.
Review property surveys
First and foremost, evaluating a property involves analyzing its surveys, which provide valuable information about its general condition. These reports help you anticipate necessary repairs and better understand the scale of the project.
Here are the most common property surveys depending on the type of home:
- Energy Performance Certificate (EPC) : Mandatory for all homes, it assesses the property's insulation and energy consumption.
- Carrez Law measurement : It measures the exact surface area of the apartment, excluding non-habitable areas such as spaces with a ceiling height of less than 1.80 meters.
- ERP Report (State of Risks and Pollution) : Essential for providing information on natural, technological, or pollution risks to which the property may be exposed.
- Termite inspection : Required in high-risk areas, it is valid for six months and detects the presence of these wood-destroying insects.
- Asbestos survey : Mandatory for properties built before July 1997, it identifies the presence of this hazardous material.
- Lead inspection : For buildings constructed before 1949, it detects the presence of lead in paint.
- Electricity and gas inspections : Mandatory for electrical and gas installations over 15 years old, they are valid for three years.
- Sanitation inspection : If the property has a non-collective sanitation system, this inspection is essential.
Inspect the property and plan the necessary work
During the viewing, it is essential to thoroughly inspect every aspect of the house or apartment, from the basement to the roof. Do not overlook any details: the condition of the walls, insulation, joinery, and electrical and plumbing installations. It is important to know the right questions to ask when viewing an apartment or house to avoid unpleasant surprises after the purchase.
To make this inspection easier, consider preparing a checklist of points to verify in the apartment or house. Don't hesitate to take photos during the visit.
It is highly recommended to be accompanied during a property viewing, especially if renovations are being considered. By signing a buyer's agent agreement, you can benefit from the experience and technical eye of a professional. At Maison Kyka, our property finders are trained by an interior designer to identify what can (or cannot) be improved and to estimate the budget for the work required during a viewing.
Finally, keep in mind that depending on their complexity, renovation work can take several months. This timeframe must be taken into account, whether you are looking to buy your primary residence or rent out the property. Additionally, remember to include a safety margin in your budget to cover any unforeseen issues, which are almost inevitable in renovation projects.
Prioritize quality
It can be tempting to cut costs by choosing cheaper materials or equipment. However, opting for quality materials is often more cost-effective in the long run.
Indeed, low-end materials can lead to recurring problems or even damage that will cost much more to repair. By choosing durable, high-performance materials, you reduce the risk of issues that could affect the aesthetics and value of the property.
To ensure the comfort of the occupants and the durability of the home, it is better to invest in materials, equipment, and labor that offer good value for money, or even high-end options.
If you have no experience in renovation or do not feel capable of managing a construction site, it is recommended to hire a renovation company or qualified tradespeople. While this represents an additional cost, it ensures that the work complies with current standards and that you benefit from solid guarantees, particularly through the contractors' ten-year liability insurance, which covers potential construction defects.
To learn more about our bespoke support services, book an appointment with one of our Maison Kyka project managers.
I just purchased my second property and Maison Kyka handled everything from A to Z. From the initial search to the renovation work, the architect managed to capture my vision exactly as I had imagined it, only better! Thanks again, I highly recommend them!
Adrien Balikdjian
Available grants and loans for renovation projects
To reduce the investment costs associated with buying an apartment or house that requires renovation, several financial schemes are available, such as:
- The Zero-Interest Loan (PTZ) for first-time buyers,
- The Eco-Zero-Interest Loan (Éco-PTZ),
- The government-backed loan,
- MaPrimeRénov’,
- Energy Savings Certificates,
- The housing savings loan,
- Tax deductions through property deficit,
- Property tax exemptions.
The PTZ for first-time buyers
The Zero-Interest Loan (PTZ) is a government grant designed for low-income households looking to buy their first propertyThis loan covers up to 40% of the purchase and renovation costs, interest-free, provided that the renovation work accounts for at least 25% of the total purchase price.
In addition, the PTZ covers a wide range of projects, such as:
- thermal and acoustic insulation,
- energy-efficient renovations,
- space optimization,
- accessibility improvements.
It is an ideal way to transform an older property into a modern home while reducing the financial burden of the project. The loan can be repaid over a period of up to 25 years and can be combined with other loans.
Eco-zero-rate loan (Éco-PTZ)
Unlike the PTZ, theEco-zero-rate loan (Éco-PTZ) is available to a wider audience, including not only owner-occupiers but also landlords.
This loan is designed to finance energy-efficiency improvements for primary residences; eligible projects include roof and exterior wall insulation, as well as window or heating system replacements.
The loan amount can range from €10,000 to €30,000, depending on the scope of the work, with a repayment period of up to 15 years. To qualify for this loan, you must hire contractors with RGE (Reconnu Garant de l'Environnement) certification.
Conventional loan
The conventional loan is another attractive financing solution for property buyers planning renovations. It can cover up to 100% of the total project cost, including work, with repayment terms ranging from 5 to 35 years. There are no income requirements, making it an option open to everyone.
Many types of work are eligible for a conventional loan, ranging from energy-efficiency upgrades and interior remodeling to home extensions.
This loan can also be combined with other forms of assistance, such as the PTZ or the Éco-PTZ. Its main advantage lies in its great flexibility and the lack of household income restrictions; however, be sure to compare bank offers carefully before committing.
MaPrimeRénov’
Since 2021, the energy transition tax credit (CITE) has been replaced by MaPrimeRénov’, a grant that makes energy renovation work easier for all homeowners, whether they are owner-occupiers or landlords. Insulation, ventilation, and the replacement of outdated boilers are all eligible for funding through this grant.
The amount is calculated based on the applicant's income and the expected energy savings from the work. This grant helps make more expensive renovation projects more accessible. However, it is important to adhere to certain spending caps to maximize the benefit.
Energy Savings Certificates (CEE): support from energy suppliers
The Energy Savings Certificates (CEE), commonly known as "energy bonuses," are a government-led initiative designed to encourage energy suppliers to help their customers save energy. This support can take various forms, ranging from direct cash bonuses to assistance with energy audits and low-interest loans.
Nearly 200 types of work are eligible, ranging from wall and roof insulation to the installation of more efficient heating systems. To qualify for these grants, you must use RGE-certified contractors, and the property must have been built at least two years ago.
Housing savings loan
If you have a Housing Savings Plan (PEL) or a Housing Savings Account (CEL), you may be eligible for a loan to finance the purchase and renovation of a primary residence. This loan can be for up to €92,000, with repayment terms ranging from 2 to 15 years.
This is a great option for those who have taken the time to save and are now looking to invest in improving or expanding their home.
Rental investment: deducting certain renovation costs from your taxes
If you buy a property requiring renovation to rent it out, be aware that you can deduct certain renovation expenses from your taxes through the property deficit mechanism. In practical terms, the costs incurred to restore or improve a rental property can be deducted from your rental income, thereby reducing your taxable amount.
The work in question is intended to maintain the property in good condition without altering its layout or structure. This includes, for example, roof renovation, replacing the heating system, or repairing electrical installations.
Property tax exemption
Finally, some municipalities offer a temporary property tax exemption for homeowners carrying out energy renovation work. Depending on the local authority, this exemption can be total (100%) or partial (50%) for a period of five years.
To qualify, the total cost of the work must exceed €10,000, and you must submit an application to the tax office. Once the five-year period has elapsed, a new application cannot be made for another 10 years.
Examples of homes renovated by Maison Kyka
Juliette and Maxime’s 200 m² apartment in La Muette
In Paris, in the La Muette district, Juliette and Maxime purchased a classic 200 m² Haussmann-style apartment. Originally designed with rooms in a row, this project required a complete overhaul to adapt it to a modern lifestyle.
The authenticity of classic features, such as moldings and fireplaces, was enhanced by contemporary touches, creating a perfect symbiosis between past and present. Every room exudes elegance while incorporating practical solutions for daily life.
Léo and Marie-Laure’s 31 m² apartment in Folie-Méricourt
In this period apartment, we removed the drop ceiling to reveal the original beams and created an optimized living space, featuring an open kitchen and a cozy living room.
The entire space was reimagined with a vision blending industrial style and pop colors.
The Maison Kyka team supports you in the purchase and renovation of your property. Personalized service and a unique eye for designing your future home—that is our philosophy.
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