Similar tools have been used by property investment professionals for years but are often not available to individual investors.
The simulator available online via the menu section of the Agence Nationale pour l’Information sur le Logement allows a wide variety of factors to be considered, which often give different results.
For example, it shows the importance of factoring in periods when the property is vacant. Tax regimes also make a huge difference.
An example of a €300,000 investment in a flat of 30m², rented out at €1,000 a month under an ordinary taxpayer regime, ends up with a 0.78% return over 10 years – without increases in property value or rents and a 2% vacancy rate.
The same flat under a micro-foncier regime will return 1.21% while, if it is rented out as a furnished apartment under the micro-BNC tax regime, it will be 1.69%.
Another function allows an accurate estimate of how long an investment property will have to be held in order to profit from owning it.