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Six detailed real estate investment scenarios with real numbers. Each case study guides you step by step through the analysis, from financial structuring to net results, using our simulators.
| Annual gross rent | EUR 9,000 |
| Total project cost | EUR 204,400 |
| Gross yield | 4.4% |
| Annual charges | EUR 2,300 (tax + condo + insurance) |
| Vacancy (5%) | EUR 450/year |
| Net yield | 3.1% |
| Monthly cash flow (rent - mortgage) | EUR -170 |
| Annual savings effort | EUR 2,040 |
By switching to furnished rental (LMNP real regime), rent can increase to EUR 850/month thanks to the furniture premium (+13%). More importantly, the real regime allows deducting depreciation on the property (approx. EUR 5,500/year) and furniture (approx. EUR 1,500/year), totaling EUR 7,000 in additional deductions.
Result: taxable income drops to zero for several years, and monthly cash flow goes from EUR -170 to EUR -70/month (850 - 921). Net-net yield jumps significantly thanks to near-zero taxation.
| Monthly rent | EUR 750 -> EUR 850 |
| Deductible depreciation | EUR 0 -> EUR 7,000/year |
| Taxable income | EUR 6,250 -> EUR 0 |
| Monthly cash flow | EUR -170 -> EUR -70 |
| Net-net yield | 1.8% -> 3.2% |
The tax regime can transform a mediocre investment into a good deal. LMNP real regime is often the game-changer that tips a project into positive territory. Before dismissing a property, always test different tax regimes in the simulator.
| Annual gross rent | EUR 28,200 |
| Total project cost | EUR 350,000 |
| Gross yield | 8.1% |
| Annual charges | EUR 5,600 (tax EUR 2,800 + insurance EUR 400 + maintenance EUR 2,400) |
| Vacancy (7%) | EUR 1,974/year |
| Net yield | 5.9% |
| Monthly cash flow (rent - mortgage) | EUR +460 before charges |
| Cash flow after charges | Approximately neutral (charges ~EUR 467/month) |
With 5 units, losing one tenant represents a 15-21% income loss (depending on the unit), versus 100% with a single property. Even with one vacant unit, income from other units covers most of the charges.
An apartment building also allows cost pooling for renovation: replacing the roof benefits all units. The maintenance budget should be set at 15% of rent to anticipate recurring work.
| 1 vacant unit (studio) | Loss: 15% of income. Cash flow: EUR -230/month |
| 1 vacant unit (3-bed) | Loss: 23% of income. Cash flow: EUR -430/month |
| Single property vacant | Loss: 100% of income |
Key strategies: Renovate to a good standard to attract quality tenants and reduce turnover. Diversify unit types (studio, 2-bed, 3-bed) to reach different tenant profiles. Budget 15% of rent for maintenance and repairs.
Under LMNP real regime, depreciation on the property (approx. EUR 9,300/year) and renovation costs (depreciated over 10-15 years) make the operation virtually tax-neutral for the first 10 years.
Volume + renovation = higher yields + diluted risk. An apartment building in a mid-size city offers the best return-to-risk ratio for investors willing to manage multiple units. Tenant diversification is your best protection against vacancy.
| Resale price | EUR 210,000 |
| Purchase price | -EUR 120,000 |
| Notary fees | -EUR 9,600 |
| Renovation | -EUR 45,000 |
| Holding costs (6 months) | -EUR 3,600 (interest 2,100 + insurance 300 + charges 1,200) |
| Agent commission (6%) | -EUR 12,600 |
| Gross margin | EUR 19,200 |
| Taxable capital gain | EUR 19,200 (no allowance before 6 years) |
| Tax (IR 19% + social 17.2% = 36.2%) | -EUR 6,950 |
| Net profit | EUR 12,250 |
| ROI on down payment (EUR 30,000) | 40.8% in 6 months |
| Annualized ROI | ~81.6% |
Fix & flip is one of the most profitable real estate operations, but also one of the riskiest. Success rests on three pillars: buying below market (15-25% discount), controlling the renovation budget (allow 10-15% contingency), and selling quickly (each extra month erodes the margin).
Main risks: renovation budget overrun (structural surprises), declining market during the operation, longer sales period than expected (increases holding costs). A failed flip can turn an expected EUR 12,000 gain into a EUR 5,000 loss.
Flipping can generate exceptional returns over short periods, but it requires accurate renovation cost estimation, good local market knowledge, and rapid execution. This is not passive investing: it is an entrepreneurial project.
| Year 1 rental income | EUR 14,400 (Paris) + EUR 3,000 (Nantes, 6 months) = EUR 17,400 |
| Year 1 renovation (1st tranche) | EUR 35,000 |
| Deductible charges | EUR 4,000 (interest + insurance + management) |
| Rental result | EUR 17,400 - 35,000 - 4,000 = EUR -21,600 |
| Offset against global income | EUR 21,400 max (energy sieve DPE F) |
| Deficit applied year 1 | EUR 21,400 |
| Tax savings year 1 | EUR 21,400 x 41% = EUR 8,774 |
| Carry-forward deficit | EUR 200 (21,600 - 21,400) carried to rental income |
Year 2: Remaining works EUR 15,000. Income EUR 20,400 (Paris + Nantes full year). Charges EUR 4,000. Result: 20,400 - 15,000 - 4,000 - 200 (carry-forward) = EUR 1,200 taxable. Tax: 1,200 x 58.2% (41% TMI + 17.2% social) = EUR 698.
Without rental deficit: EUR 20,400 x 58.2% = EUR 11,873 annual tax. Over 2 years, total savings exceed EUR 20,000.
| Year 1 savings | EUR 8,774 |
| Year 2 savings | EUR 11,175 (11,873 - 698) |
| Total savings over 2 years | ~EUR 19,949 |
| Studio value increase (DPE F -> C) | +15 to 20%, i.e. +EUR 12,000 to 16,000 |
Rental deficit is the most powerful tax weapon for high-bracket investors (30%, 41%, 45%). By combining energy renovation with rental deficit, you massively reduce your taxes while upgrading your assets. Since 2023, the ceiling is raised to EUR 21,400/year for energy sieves.
| Rental income | EUR 36,000/year |
| Depreciation (80% x 600,000 / 30 years) | -EUR 16,000/year |
| Loan interest | -EUR 8,000/year |
| Deductible charges | -EUR 6,000/year |
| SCI taxable result | EUR 6,000 |
| Corporate tax (reduced rate 15%) | EUR 900 |
| SCI net result | EUR 5,100 |
| Dividend distribution (PFU 31.4% — LFSS 2026) | EUR 5,100 x 31.4% = EUR 1,601 |
| Net received by couple | EUR 3,499 |
| Total taxation (IS + PFU) | EUR 2,501 |
| Taxation under personal ownership (real regime) | EUR 10,384 |
| Annual savings | EUR 7,883 |
The SCI under corporate tax has a major trap at resale: capital gains are calculated on the net book value (after depreciation), not the original purchase price. If you sell after 20 years of depreciation, the capital gains tax base is considerably increased.
Example: property purchased for EUR 200,000, cumulative depreciation of EUR 106,667. Book value: EUR 93,333. Resale at EUR 250,000. Corporate capital gain: EUR 250,000 - 93,333 = EUR 156,667, taxed at 25% = EUR 39,167. Under personal ownership, after 20 years of allowances, the capital gain would have been virtually tax-exempt.
| Annual IS savings (over 20 years) | ~EUR 157,660 cumulative |
| Extra capital gains tax at exit | ~EUR 39,167 per property (estimate) |
| Net gain after exit | Positive for long-term holds |
SCI under corporate tax drastically reduces annual taxation through depreciation, but creates a major tax cost at resale. It is the ideal strategy for assets intended for long-term holding or estate transfer (share donation with 10-15% discount). The primary advantage of IS is the ability to deduct depreciation (EUR 16,000/year), which is not possible under personal ownership.
| SCPI: Amount invested | EUR 100,000 |
| SCPI: Entry fees (9%) | -EUR 9,000 (withdrawal value: EUR 91,000) |
| SCPI: Annual distribution (4.5%) | EUR 4,500 gross/year |
| SCPI: After tax (TMI 30% + social 17.2% = 47.2%) | EUR 2,376 net/year |
| SCPI: Cumulative net over 10 years | EUR 23,760 |
| Direct: Down payment | EUR 30,000 |
| Direct: Loan | EUR 70,000 at 3.5% over 20 years (payment: EUR 406) |
| Direct: Rent | EUR 500/month = EUR 6,000/year |
| Direct: Annual charges + taxes | ~EUR 2,100 |
| Direct: Monthly cash flow | EUR -50/month (savings effort) |
| Direct: Cumulative effort over 10 years | -EUR 6,000 |
SCPI: Capital invested EUR 100,000 + cumulative net distributions EUR 23,760. Stable withdrawal value at EUR 91,000 (conservative assumption). Total wealth: ~EUR 114,760. Zero management, zero stress, diversification across 100+ properties. Important: SCPI income is taxed as rental income (TMI + 17.2% social contributions), NOT as flat tax.
Direct investment: Property purchased EUR 100,000, valued at ~EUR 115,000 (+1.5%/year). Remaining loan balance: ~EUR 45,000. Equity in property: EUR 70,000. Cumulative cash flow: -EUR 6,000. Net wealth: EUR 115,000 - 45,000 - 6,000 = EUR 64,000 net. Plus the EUR 70,000 that was not invested.
| SCPI: Wealth at 10 years | ~EUR 114,760 (91k + 23.8k distributions) |
| Direct: Wealth at 10 years | ~EUR 109,000 (115k property - 45k loan + adjustments) |
| SCPI: Management required | None (100% passive) |
| Direct: Management required | Active (tenants, repairs, accounting) |
| SCPI: Leverage effect | None |
| Direct: Leverage effect | x3.3 (100k / 30k down payment) |
SCPI offers simplicity, diversification, and regular returns with zero management. But without leverage, the return on invested capital remains moderate. Important: SCPI income is taxed as rental income (TMI + 17.2% social contributions), not as flat tax (30%).
Direct investment allows using bank credit as a wealth accelerator. The cash flow effort is offset by equity buildup through loan repayment and potential property appreciation.
For the same starting capital, leveraged direct investment generally creates more wealth long-term, but at the cost of management effort and concentrated risk on a single property.
SCPI for investors who prioritize simplicity and passivity. Direct investment for those who want to maximize leverage and control. The best strategy is often to combine both: direct for leverage, SCPI for diversification.