Is it profitable to buy a thermal colander and renovate it?

The study by the Notaries of France[1] highlights significant discounts for energy-intensive housing, which can make the purchase of a thermal sieve attractive. But does renovation really make it possible to compensate for this loss of value and obtain a financial gain?

To answer this question, this study compares the total cost of these two strategies: purchase price, cost of work, available aid, and post-renovation valuation. Through four concrete cases, it identifies situations where energy renovation is a profitable investment and those where it is wiser to purchase a property that already performs well.

Significant discounts linked to the energy label, throughout France

Discounts related to poor energy performance are lower in large cities (often less than 10%) and are significantly higher in medium-sized towns and rural areas, where they can exceed 30%. This difference is explained by stronger real estate demand and a housing shortage in metropolitan areas, which mitigate the impact of the DPE on prices, while in less tense areas, thermal sieves become significantly less attractive and are sold at much lower prices.

Hello Watt studied two examples of houses

Hello Watt studied 2 examples of houses:

Example house 1

Is it better to:

• A. Buy a 200 m² house in a rural area, classified F, and carry out a major renovation to bring it up to C?
• B. Buy a similar house already classified C directly?

Answer A: Renovation is more cost-effective.

Example house 2

Is it better to:

• A. Buy a 100 m² house in Tours, classified F, and carry out a major renovation to bring it up to C?
• B. Buy a similar house already classified C directly?

Answer A: Renovation is more cost-effective.

Hello Watt also studied the example of 2 apartments

Is it better to:

• A. Buy a 100 m² apartment in Bordeaux, classified F, replace its windows and install a thermodynamic water heater to make it E?
• B. Buy a similar apartment already classified E directly?

Answer A: Renovation is more cost-effective.

Example apartment 2

Is it better to:

• A. Buy a 50 m² apartment in Paris, classified F, and insulate it from the inside to make it D?
• B. Buy a similar house already classified C directly?

Answer B: The renovation is not profitable due to the loss of surface area.

In conclusion, it is generally more cost-effective to purchase a thermal sieve and renovate it rather than directly purchasing a well-rated energy-efficient home. In the case of a house, the work will almost always be more cost-effective, due to the significant amount of discounts linked to the energy rating. For urban apartments, this requires a precise assessment based on the type of property, its location, and technical constraints.

Conclusion and tips

In theory, there should be only a small price difference between a well-rated property and a renovated property with equivalent performance. However, our study shows that there can be differences of several tens of thousands of euros, making the purchase of a thermal strainer and its renovation much more advantageous.

How can this phenomenon be explained? Carrying out renovations requires effort: they can seem complex, raise concerns about their proper execution, the reliability of the craftsmen, or even the risk of scams. Many individuals thus forgo a renovation that is nevertheless profitable, due to a lack of support and visibility on the costs and available aid. However, for those ready to take the plunge, great opportunities exist. The lower a household's income, the higher the aid available, making the operation all the more attractive. Provided the necessary financing can be secured, investing in renovations can thus prove particularly attractive.

Investing in a thermal colander for renovation can therefore be a wise strategy, but it depends on the type of property, its location, and the nature of the possible work. Here are some investment tips based on the results of this study:

Investments in rural or peripheral areas:

• Property type: Houses in rural areas often offer more flexibility for carrying out ambitious work such as external insulation or installing a heat pump.
• Profitability: With a significant discount on the purchase price and substantial aid, major energy renovations are often profitable and allow for a substantial increase in the value of the property.
• Tip: Investing in a thermal strainer in a rural area for renovation is a cost-effective strategy, especially for renovations that allow you to move up several energy classes.

Investments in urban apartments:

• Type of property: In large cities, work is often limited (e.g.: interior insulation) and subject to co-ownership constraints.
• Profitability: Renovations are less often profitable due to the potential loss of living space (particularly in the case of interior insulation), building constraints, and the low discount compared to the post-work value.
• Tip: In urban centers, prioritize purchasing properties that are already well-rated or whose renovations won't reduce the living space. However, renovations may be necessary to maintain rental potential or achieve energy savings.

Importance of aid and energy savings:

• Government aid: Grants, such as MaPrimeRénov' and CEE, play a decisive role in the profitability of renovations. The more extensive the work, the greater the aid, making large-scale renovations more attractive.
• Energy savings: Beyond resale value, gains in energy savings and thermal comfort represent concrete and immediate benefits for the occupant, while reducing the property's carbon footprint.

Factors to evaluate before purchasing:

• Price per square meter after renovation: Compare the cost of purchasing a renovated property with that of a thermal sieve, including the cost of the work and any subsidies. Make sure the renovation provides sufficient added value, especially in high-demand areas like Paris.
• Complexity of the work: In areas where the complexity of the work is high (architectural or legal constraints), it may be more judicious to buy a property that has already been renovated to avoid hidden costs and delays in completion.

Purchasing a thermal sieve for renovation is a potentially profitable strategy, particularly for properties in rural or peri-urban areas where renovations can be carried out without too many constraints. However, in urban centers, this strategy must be carefully considered. Consideration of energy savings, thermal comfort, and increasing regulatory requirements must be an integral part of the investment process.

[1] https://www.notaires.fr/fr/immobilier-fiscalite/etudes-et-analyses-immobilieres/performance-energetique-la-valeur-verte-des-logements

Illustrative image of the article via Depositphotos.com.