A Paris-based software engineer recently sold his rental apartment and did something that would have seemed unthinkable five years ago: he put the proceeds into private equity. After crunching the numbers on his LMNP (location meublée non professionnelle, or non-professional furnished rental), his net yield had collapsed to under 4% after taxes, charges, and the countless Sunday mornings spent dealing with tenant issues. The final straw? A 30% jump in his taxe foncière (property tax) and a DPE (diagnostic de performance énergétique, or energy performance certificate) requirement that would cost thousands.
His story isn’t unique. Across French FIRE (Financial Independence, Retire Early) communities, the calculation is shifting. The old mantra that property equals security is being replaced by a harder question: does the return justify the effort?
The Net Yield Collapse: When 4% Becomes a Fantasy
The math looks brutal when you strip away the optimism. One investor reported that after all charges, taxes, and CSG (contribution sociale généralisée, or social contributions), his real return fell below 4%. That’s before accounting for his time.
Why the squeeze? Several factors converged:
- Taxe foncière increases: Local authorities have raised rates significantly, with some owners seeing 30% jumps
- DPE requirements: Properties rated F or G face major renovation costs or rental restrictions
- Rent controls: The encadrement des loyers (rent control mechanism) in many cities caps income potential
- Copropriété burdens: Assemblées générales (general meetings) and collective decisions can force expensive renovations
The déficit foncier (property deficit) mechanism offers some relief, allowing you to deduct charges and interest from taxable income. But it’s capped at €10,700 annually (or €21,400 for energy renovations until end-2025), and the paperwork is substantial. For many investors, the juice isn’t worth the squeeze.
The Jeanbrun Device: A Complicated Lifeline
The government’s response, the dispositif Jeanbrun (Jeanbrun device), launched in January 2026, tries to revive investment through amortization. It allows deducting part of the property’s purchase price from rental income, up to €12,000 annually, with potential to offset general income tax up to €10,700.
But the conditions are strict:
- Only apartments in collective buildings qualify (no individual houses)
- Minimum 9-year rental commitment
- Rent must stay below specific plafonds (ceilings)
- For older properties, renovations must cost at least 30% of purchase price
- Properties must achieve DPE A or B after renovation
As experts note, reaching energy class A or B in older copropriétés is “quasi impossible de manière individuelle” (nearly impossible individually). The dependency on collective decisions for insulation, heating, and facade work makes it a gamble.
The device favors investors with substantial capital who can absorb high renovation costs and periods of vacancy. For the average FIRE seeker starting with one property, it’s a difficult fit.
The Leverage Myth: Why Credit Doesn’t Save Bad Math
Property defenders always point to leverage. “You can’t get 110% financing on stocks”, they argue. True, but leverage doesn’t improve a mediocre asset, it amplifies both gains and losses.
One commenter countered: “Un actif mediocre avec du levier reste un actif mediocre, juste plus risque” (A mediocre asset with leverage remains mediocre, just riskier). If your net yield is poor without leverage, financing won’t magically make it attractive.
Banks have tightened lending criteria for investors. They typically count only 70% of projected rental income toward your debt-to-income ratio, and you must stay below 35% total endettement (debt burden). This taux d’endettement (debt ratio) constraint means even with low interest rates (around 3.3-3.6% for 20-25 year loans), many investors can’t borrow enough to make the numbers work.
The Time Tax: Your Real Enemy
Here’s what doesn’t show up in spreadsheets: the Sunday morning call about a water leak. The hours spent on copropriété paperwork. The stress of finding new tenants when the previous ones leave.
FIRE is about freedom and peace of mind. As one investor noted, “Fire c’est aussi avoir une liberté et tranquillité d’esprit qui perso ne me pousse pas à investir dans l’immobilier” (FIRE is also about having freedom and peace of mind that personally doesn’t push me to invest in real estate).
This time cost is rarely quantified but represents a significant drag on your effective hourly return. If you spend 50 hours a year managing a property that generates €3,000 net, you’re earning €60/hour before tax. Many FIRE seekers value their time higher than that.
The Alternative: Private Equity and Paper Assets
The Reddit investor who switched to private equity through Fundora accepted high entry fees but targeted 10-12% net returns with zero management effort. This reflects a broader trend.
Other alternatives gaining traction include:
- SCPIs (Sociétés Civiles de Placement Immobilier, real estate investment trusts): Offer 4-5% yields with no management, but liquidity risks have emerged
- Crowdfunding immobilier: Yields around 10-12% but with higher risk
- ETFs immobiliers: REIT-like exposure with low fees
- Assurance-vie: Tax-efficient wrappers for diversified portfolios, more attractive than CTOs for long-term holding
These options let you maintain real estate exposure without the midnight plumbing calls.
Is It Ever Still Viable?
Buy-to-let isn’t dead, but it’s no longer the default FIRE path. It can work in specific scenarios:
- Professional scale: Managing multiple properties spreads fixed costs and justifies time investment
- Value-add opportunities: Buying significantly below market and adding real value through renovation
- Family transfers: Acquiring property through donation or inheritance at reduced cost
- Strategic locations: Areas with strong rental demand and limited regulation
For most individuals seeking FIRE through a single rental property, the math is increasingly difficult. The combination of declining real returns, regulatory complexity, and time costs makes alternatives more attractive.
The Bottom Line: Run Your Real Numbers
Before committing, calculate your rendement net-net (net-net yield):
- Start with gross rental income
- Subtract all charges: taxe foncière, copropriété fees, insurance, maintenance
- Factor in realistic vacance locative (vacancy rate)
- Deduct fiscalité (taxation) including income tax and social contributions
- Assign a monetary value to your management time
If you’re below 5% net-net, seriously consider whether the hassle is worth it. The FIRE movement in France is maturing beyond the simple “buy property and wait” formula. Many are finding that diversified financial assets offer better risk-adjusted returns with true passive income.
The property dream isn’t dead, but it’s no longer the only path to financial independence. Sometimes, the best investment is the one you don’t have to manage.
Key Takeaways:
- Net yields on French rental property often fall below 4% after all costs
- The new dispositif Jeanbrun (Jeanbrun device) offers tax relief but with complex conditions that exclude many investors
- Regulatory burden: DPE requirements, rent controls, and copropriété decisions add costs and stress
- Leverage doesn’t fix poor underlying returns, it amplifies risk
- Time spent managing properties is rarely valued properly in return calculations
- Alternatives like private equity, SCPIs, and tax-efficient wrappers may offer better FIRE pathways
- Run complete net-net calculations before buying, including a value for your management time
For those still committed to property, focus on scale, value-add opportunities, or strategic family transfers. For everyone else, the French FIRE movement is proving that financial independence doesn’t require being a bailleur (landlord).
