THE TOP 12 REASONS TO INVEST IN NEW BUILD PROJECTS IN FRANCE

By Nicolas P. VIALE - President and Founder of INEUF.com

It's a fact : Many overseas investing in real estate in France prefer to buy new build apartments and/or houses. The advantages are fairly obvious for those who know hte market and the french laws... and even french citizen prefer to live in new rather than old properties. 

Here are the top 10 reasons why you should consider such an investment :
 

Reason #1 : BECAUSE YOU CAN !

The law is the law... As a foreign citizen, you have the exact same rights than any French citizen when it comes to investing in real estate.

In few words, that means: You can own, rent, enjoy and/or resell your property.

No limitations.
 

Reason #2 : THE SAFE LEGAL PROCESS

In France, the process of buying in brand new projects answers to strict rules and regulations (code de la construction et de l’habitation) most of them defined to create a safe and stress-free environnement for the purchasers and pretecting their future investment.
This is why buying a new home might seem a little more sophisticated and complicated, but in the end it’s all benefit for you.

 

Reason #3 :THE PAYMENT PLAN

When investing in a brand new project, price is payable upon the advance of the construcition work until the full completion of the project and delivery of the keys.
That means you can manage the payment in your future projected income and/or accomodate your financials with the payment schedule enough in advance.

 

REASON #4 : THE PRELIMINARY CONTRACT

When buying in a brand new project, don’t just expect to sign a simple four pages reservation contract... You will sign a fully detailled contract, as well as the floor plans to the apartment and related units (garage, cellar, etc), and the detailed summary of finishings.

At the signing of the preliminary contract, a down deposit that cannot exceed 5% of the total purchase price will be required. This deposit is fully secured and cannot be used by the developer to fund the development. It must be placed in a client escrow account, either with a bank, or through the Notaire, and cannot be withdrawn until the sale is completed.
 

REASON #5 : THE FINANCING CLAUSE

Your purchase can be subjected to a condition of financing (local banks prefer financing brand new projects Vs resales). You then have enough time after signing the preliminary contract in order to apply for a loan in your own country or in France (don’t hesitate to ask us, we can help).

In case you don't get a loan approval, you will refund your down deposit immediately.
 

REASON #6 : THE REDUCED TRANSFER FEES

Here is the best part: By investing in a brand new real estate project, you will pay reduced transfer fees upon closing at the notary's office. Notary's fees, registration stamps and taxes will sum up to approximately 2,5% of the total purchase price instead of 8% when purchasing a resale.

A direct benefit of 5,5% on your global investment...
 

REASON #7 : A SAFE AND SECURED DELIVERY

New Build project are subject to various warranties granted to the purchaser that buyers need to be aware of :

THE FINANCIAL GARANTEE : In a brand new project, the developer is obliged to provide a collateral or financial guarantee that secures completion of the project in the event of bankruptcy, liquidation of the business or failure to complete. The guarantee is arranged via a bank or insurance company and is referred as "garantie d'achèvement". All the details will be mentioned by the notary in the final contract.

THE BUILDER'S GUARANTEE : You also get a builder's guarantee:
• TEN years regarding any structural damage and/or default that might affect the use of the property.
• TWO years on the equipment installed in the apartment (electric, plumbing, heating, ect.).
No matter what happens and affects your property, the insurance will get it fixed immediately and then search for the builder’s liabilities.

THE HIDDEN DEFFECTS : Beyond delivery of the keys, the developer stays liable for any hidden defects that may appear. In clear, during first year from completion the developer is obligated to guarantee complete performance of the work. Where a defect arises the client is not obliged to prove the fault and the developer/ builder is presumed to be responsible.

A simple mail or phone call to the project manager generally fix the situation.
 

REASON #8 : MORE COMFORT AND SECURITY

New homes have exceptional specifications and energy efficiency, meaning they'll still be at the height of convenience in years to come. By purchasing in a brand new project, you always get a better level of comfort and security. New technologies (smart-homing equipments), new materials, new regulations... it's all here.

For example, you will get a better phonic and thermic isolation, as well as the latest equipment and technology available on the market.
In order to get the construction permit granted, the developers and architects have, since 2010, to get all apartments and common areas (from the parkings to the outdoor areas) accessible for the handicapped as well as environmentally-friendly, by using specific isolation materials, recycling containners and technology.

Generally most of the buildings and apartments offered in new build projects are now pre-equipped with smart home systems for a better mastering and control of your energy consumption as well as your security in the private and common areas.

 

REASON #9 : MAINTENANCE... PAY LESS AND GET MORE

LOWER OWNER'S FEES : You will pay lower home owners' association fees, in a brand new condo, compared to an older construction. The main reason is that in an old building, all co-owners share the costs for water, hot water, heating and cooling. In new buildings you have individual meters and therefore you only pay for what you use. Another fact is that the new construction already answers to the latest laws and regulations and there will be no need to plan for spending more money on improvements.

BETTER INFRASTRUCTURE : Brand new condos and houses provide generally a better infrastructure to the residents and owners... More parking spaces per apartment, more appropriate and maintenance-friendly common areas, better security tools, intelligent control systems, as well as pre-wired TV and internet access. Some things to seriously consider these days.

LOWER MAINTENANCE FEES : You will certainly pay lower maintenance fees in a brand new building. Two reasons for that, the first is a better and more recent technology. The second reason is that the builder’s guarantee will generally take care of most of the current problems that might occur without a single penny from your pocket !
 

REASON #10 : REDUCED PROPERTY TAX !

Another good surprise when buying and investing in a new build project in France : In order to promote sales in the brand new condo industry, the government created an exception for the property tax during the first 2 years. By buying in a brand new project, you will get to pay lower property taxes (reduction varies in each city) for the first 2 years.

In some cities, this tax is fully waived the first 2 years, on some others, it is partially waived.
 

REASON #11 : CUSTOMIZED FLOOR PLAN...

Buying in a brand new project off-plans gives you the opportunity to change and adapt the layout of the apartment to your personal lifestyle and criterias... as long as you respect the construction rules and regulations. If planned in advance, way before the construction starts, there will be not much extra costs involved.

 

REASON #12 : MASTER YOUR INTERIOR DESIGN !

The developer will finish the apartment according to the contractual summary of finishings you have signed. You will have the possiility to choose in advance from sevaral types and tones of ceramics, bathroom furniture, etc.

If you wish to upgrade and/or opt for a different equipment not included in the list, just ask!

Everything is possible.
 

ONE LAST WORD : 

Finally new build projects are simply more adapted to a contemporary and modern way of life but more important: the legal process of purchasing is fully secured and you will also have the opportunity to get an apartment custom- designed to your needs and taste.

So, why hesitate ?

Contact us today at +33(0)6 60 73 50 00 or contact@ineuf.com and let's talk about your projects, we can help you find your new home in france and guide you through the process of negociating, buying, financing and moving in France...

Nicolas P. VIALE - President & Founder at INEUF.com