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Rental property: Where to invest in Île-de-France between the future stations of the Metro and the RER extension?

To maximize your rental profitability, there’s no secret: the priority remains targeting the right location to rent your apartment. In Ile-de-France, landlords can thus look for accommodation well served by transport, and therefore easily accessible to future tenants. Some may even anticipate the opening of new networks, perhaps already discounted! With this in mind, rental investment specialist Beanstock has conducted an unprecedented study on the expected returns for tenants around future stations on lines 11, 12, 14, and RER E. On these four lines, expansion projects have been implemented, which should eventually lead to around thirty new stations. Precisely around each of these stations with a 10-minute walk, Benstock estimates the profitability of landlords who will rent furnished studios on site with a typical surface area of ​​20 square meters. And this, following a specific procedure.

Know the net return on investment

Thus, to estimate the profitability of such investments around these stations, Beanstock first adds the following costs to the lessee:

  • Average purchase price of a 20 square meter studio (including real estate agency fees);
  • transfer duty (often called notary fee for simplicity), which here corresponds to 8% of the purchase price of the residence;
  • Repair work on studios, estimated at 12,000 euros for a typical 20 square meter studio, this amount being defined by the average observed by Beanstock for this type of accommodation;
  • Rental investor support costs, charged at 7.2% of the transaction amount (with a minimum ticket of €10,000).

Then, the rental investor estimates the expected rental income around these stations by taking the following factors:

  • Average rental amount (adjusted) with charges determined using Beanstock’s transaction history in each city;
  • Ceilings defined by rent control in these cities, if applicable;
  • the average amount of rental charges observed on the site;
  • Average local property tax for a 20 square meter studio.

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“The market rents presented here are the result of our own observations through advertising sites and through our past investments”, noted Matthew Havett, Head of Real Estate Studies at Binstock. However, sometimes, the rent actually applicable may be higher than the permissible ceiling in these cities. “We interpret this phenomenon as the fact that most landlords sometimes practice rent supplementation in certain municipalities, thereby exceeding the rent of the rental structure”, he explains.

From these elements, Beanstock was able to estimate the net profit (before taxes) that landlords in this neighborhood could expect. Beanstock thus takes into account local variables such as property taxes, rental charges or “notary fees” to estimate true profitability closer to reality. Discover future stations where expected returns are most promising, and where they will remain relatively moderate, in our infographic.

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