The housing savings plan, well known by the abbreviation of PEL, is one of the blocked investments preferred by taxpayers wishing to carry out a real estate project. Indeed, this savings product offers certain privileges that will help individuals acquire the home they want. However, since the changes made by the government in 2018, it is preferable for future PEL holders to be well informed before opening an account.
What are the flaws of the 2018 ELP?
Following the changes made by the French government in 2018, the home savings plan has some inconveniences that can confuse savers. Indeed, some advantages of this investment have been withdrawn by the government. On the one hand, individuals no longer have the chance to receive a state bonus when applying for a mortgage. On the other hand, the PEL will be imposed (from the first year of possession) at a compulsory flat-rate deduction (PFU) of 12.8%.
How much is the remuneration for the PEL in 2018?
The interest rate of the housing savings plan has remained unchanged since August 1 , 2016. Indeed, its remuneration amounts to 1%, ie its lowest rate since its creation. It should be noted that PEL opened before August 2016 keep their annual remuneration rate. Thus, holders of an account created between February 1 , 2015 and January 31, 2016, for example, have an interest of 2%.
For information, the gains generated by this savings product can be capitalized. As a result, at the end of each year, the profits obtained are added to the fund already present to generate additional income.
How does the ELP work in 2018?
Despite the changes made by the state, the operation of this placement remains the same. Thus, during a savings period (from 4 to 10 years), individuals are required to regularly fund their account without making a single withdrawal. During this phase, the housing savings plan will produce interest. These profits will help to assess the amount of the loan that the holder of the PEL can have. At the end of this time interval, taxpayers have the option of taking out a loan to build, renovate or buy real estate.
As an indication, once the 15-year holding period has been exceeded, the PEL is automatically transformed into a classic savings account. The interest rate will be set by the bank where your PEL is located.
How are ELP filings made in 2018?
The periodicity of the payments and the amount to put on a PEL correspond to the option selected by the saver when creating the account. Indeed, taxpayers can opt for three deposit methods, namely an investment of €45 per month, €135 per quarter or €270 per semester.
It should be noted that individuals can make exceptional deposits without exceeding the ceiling of the housing savings plan, which is €61,200 (excluding capitalized interest).
Other important information
According to the legislation, a saver can only hold one housing savings plan. However, an exception is allowed. Indeed, a taxpayer has the possibility of having 2 PEL provided that the second is obtained via an inheritance and that this account is not at term.