Real alternative to renovation
Renovation costs in France can rapidly exceed
one’s budget as far as materials and project
supervision are concerned. In some instances the
renovation project will require planning permission
and the administration involved will also add in time
and costs to the original budget. French new build
property on the other hand is priced more or less
“ready to move into” which is a
substantial benefit to the purchaser who knows from
the outset the overall cost of the purchase.
New property is the first choice of the French buyers
themselves and new properties for sale in France are
snapped up quickly. This is not surprising given the
many financial and lifestyle benefits you enjoy when
buying new build in France.
5% refundable deposit
When purchasing an off plan property in France,
French law clearly states that the deposit required
for the reservation of the property cannot exceed 5%
of the purchase price. This is an attractive benefit
which reduces the purchaser’s initial outlay.
In the case of other property transactions the
deposit required is 10%.
§
If the time limit for the completion of the sale
(signing of the Deeds) exceeds two years the deposit
required is reduced to 2%.
§
The law (article R.261-29 of the Construction and
Dwellings Code) also requires the deposit to be paid
into an escrow account (compte sequestre)
“where the sum shall remain unavailable, non
transferable and unattainable until the signature of
the Deed of sale.”
§
The deposit is returned to the purchaser, without
retention or penalty, under clearly laid down terms
in the contract, amongst which:
§
If the purchaser decides to cancel his or her
reservation during the 7 day statutory cooling off
period which follows the signing of the French
reservation contract.
§
If the mortgage applied for to finance the purchase
is not granted within the stated time for the
mortgage application (usually one month from signing
the French reservation contract) and the buyer is
unable to proceed.
§
If, due to an act of the vendor, the sale agreement
is not concluded within the time limit provided for
in the French reservation contract.
§
If any of the items of equipment provided for in the
reservation contract is not completed.
Secure and simple buying procedure
Buying an off plan property in France is a
straightforward and safe process. All new build
property is subject to French government regulated
contracts designed to protect the interests of the
purchaser.
Low legal costs (3%-4%)
Legal fees on new build property in France are low
and amount on average to only 3.5% of the purchase
price. This compares very competitively against 6% to
8% for an old property. The legal fees or Frais de
Notaire include the French Notary’s fees and
the Deed documents registration fees.
Stage payments
Other financial advantages in buying a new property
in France include stage payments which are made as
construction progresses and which help spread the
cost of financing the purchase of your new home.
Excellent letting and resale potential
Off plan properties in France are built on
residential developments which are often gated and
set in landscaped maintained grounds. This provides a
secure, organised environment which is attractive to
holiday letting agencies. In addition French off plan
developments are often located close to all
amenities, which is an important requirement from a
holiday point of view. When time comes to resell
these key features ensure good resale potential and
sustained capital growth.
French lifestyle at the turn of a key
As new build properties require little or no
maintenance you are able to enjoy your place in
France and French lifestyle from the moment you
arrive. At the end of your stay you can lock up and
leave your new home with full peace of mind and
looking forward to your next visit.
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