Buying New Build in France – Think of it as Not Having to Renovate or Decorate!

For some people buying a home or holiday house in France means getting their hands on an old stone building, a crumbling water mill or perhaps even a decrepit château. It’s an integral part of their dream of living or holidaying there. But the tide is turning - and more and more house hunters are now seeking out new properties instead. Here are some of the reasons we think purchasers are looking for new build or buying off-plan in France. 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 a renovation project will require planning permission and the paperwork involved will also add time and costs to the original budget.

French new build property on the other hand is priced more or less on the basis of being ‘ready to move into’. This is a major benefit to the buyer, who will be clear about the overall cost of the property from the outset. And let’s face, it also means less work for the buyer – no months of renovation or decoration to ‘look forward’ to! As you may already know, new build has for many years been the first choice for French buyers - and new properties for sale in France are usually snapped up quickly. This is not that surprising given the many financial - and lifestyle - benefits you enjoy when buying new build in France.

A refundable deposit of 5% 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 a real benefit that reduces the purchaser’s initial outlay. In the case of other property transactions the deposit required is 10%. And 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 purchaser’s deposit is also given considerable legal protection too. The law (it’s article R.261-29 of the Construction and Dwellings Code) requires the deposit to be paid into an escrow account (compte sequestre) where it can’t be touched by the seller until the sale goes through. The actual wording is that ‘the sum shall remain unavailable, non transferable and unattainable until the signature of the Deed of sale’.

The deposit will be returned to the purchaser, without any retention or penalty, under terms clearly laid down in the contract. These include: - If the purchaser decides to cancel his or her reservation during the seven 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%) None of us enjoy paying lawyers, do we?

Well, 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 with 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 staged payments – these are made as construction progresses and 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 that are often gated and set in landscaped maintained grounds. This provides a secure, organised environment that’s 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. And if and when the time comes to resell, these key features help 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. General advice on buying in France The key in today’s environment is to be ‘comfortable’ with the purchase. Knowing that it can be financed is important - i.e. it is vital to spend time looking at the different financing options (UK re-mortgage, Euro mortage, cash purchase) before even going to France to look at properties. It is always better to view properties with this side of things already in hand, and an agreement in principle if a mortgage is to be raised.

Also, any purchaser must be confident about the location. It must be right for their current needs and requirements but also for the long term. For example, will the area have good resale potential? Finally, potential buyers should make good use of the knowledge and expertise UK agents offer. It will save time - and agents are often in a better position to answer all their questions in English, overcoming in this way the potential language barrier. A Place in France for FrenchEntrée Property www.aplaceinfrance.co.uk

Article Source: http://www.realestatepropertyarticles.com.

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A Place in France is the UK's leading off plan French property agency.