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It really depends too much on your region and your expenses, I've got friends who are landlords and things have gotten tight with inflation and the new rules. You really gotta do the math carefully before you jump in, it's not as straightforward as it used to be.
It's clear that it's not like it used to be. I see it from a distance but even in the building guys are complaining about rising charges and tenants struggling to pay. If you really want to go for it you gotta really do your numbers tight, like get a complete inspection of the property, look at realistic returns, not what the agencies are selling you. And honestly it might be more worth your while to put your money somewhere else in 2026, really depends on what you're trying to do.
It's true that it's gotten more complicated than it used to be. Personally I have a small rental property in Burgundy and honestly with the insulation standards they want to impose everywhere and the costs climbing up, the profit margin is shrinking quite a bit. You've gotta really check your ROI before taking the plunge in 2026, especially if you actually want to live off it.
It's gotten pretty heavy! As an accountant myself I see the numbers going through and the margins are really shrinking, especially if you haven't set aside a buffer for the energy compliance work that's coming at breakneck speed. You really gotta be strict about calculating your profitability before you jump in, like plan for worst-case scenarios or you'll quickly end up in the red!
It's still doable but you gotta be realistic, it's not the easy money move it was a few years back. I see plenty of taxi drivers talking about their rentals and it's true margins have shrunk. Expenses are going up, local taxes too, and then there's vacancy periods, unexpected repairs... that eats into profitability quite a bit.
What really matters is your personal situation - how much budget are you starting with? Are you looking for short-term returns or thinking long term? And especially what region are you targeting because honestly in Île-de-France you don't get the same yields as in the provinces. I know landlords who are doing well but they're the ones who bought before the big inflation spike or they've got properties in good locations with strong rental demand. If you're buying expensive now in a tight market with high interest rates, your returns will be tight.
Honestly before you jump in, you should really do the math with an accountant or a real estate pro, not just on the back of a napkin. Look at actual expenses in the neighborhood you're considering, factor in at least two three months vacancy per year, and keep in mind that insulation and building codes are getting more and more demanded so you gotta budget for that. It's not impossible in 2026 but it's not exactly a passive investment either.
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