Whether it's an already built property or one under construction, investing in new construction has many benefits. Tax incentives, security, assistance, discover the advantages and our tips for choosing your next new property.
Buy new to avoid doing work
Buying a new or under construction property means assurance of comfort. You purchase a property that suits you and doesn't require any immediate work. Insulation, electricity, water systems, everything is new and up to standards. Recent real estate properties are designed respecting construction norms, especially for thermal insulation. The energy performance is such that you are guaranteed not to live in an energy-consuming home. This is a real advantage for your heating bills and other energy-related expenses. It also provides a level of comfort significantly higher than that of older properties.
When you buy an old property, you are forced to carry out renovation works to avoid being considered a thermal sieve. With new real estate, your first works will be related to decoration. This is a real money saver, as major works in a house or apartment can turn out to be very costly and should be considered in your budget for the purchase.
Gain in security and warranty
Buying new also means benefiting from mandatory warranties and being more protected.
If you believe you are a victim of poor workmanship, it's the craftsmen who will have to carry out the repairs at their expense thanks to the perfect completion warranty.
The biennial warranty ensures that equipment such as shutters or the hot water tank, function correctly.
The ten-year warranty attests to the solidity of the construction. Thus, you should not have cracks in your walls or sagging floors.
The damage-work warranty allows you to receive financing if repair works need to be done.
Finally, the extrinsic warranty ensures the completion of the construction site and a refund to the buyer in case of the constructor's failure.
Loans to help finance your new purchase
If you are making your first purchase, especially for a new home, know that you can benefit from certain aids to help finance it.
The zero-interest loan + (or PTZ+) is aid allowing modest households to become homeowners of their first property. To benefit from it, future buyers must not have been homeowners in the two years preceding the purchase, and their resources must be lower or equal to a ceiling set according to the area where the property is located. Also, financing conditions vary depending on the number of people to occupy the property and the household's reference tax income.
The social accession loan (PAS) is also aimed at modest households. The State created the social accession loan to benefit from very advantageous interest rates as they are capped. Note that it can be combined with the zero-interest loan and the housing action loan. The amount of this loan is at least €4,500 without a maximum amount, it can finance 100% of your purchase. Repayment can be progressive and varies over a period of 5 to 30 years.
The housing action loan (PAL) or the 1% housing loan also allows first-time buyers to benefit from a loan with a maximum amount of up to €40,000. Its rate is also reduced, and to benefit from it, you must be an employee of a non-agricultural private sector company with ten employees or more.
Significant tax exemption and a rent guarantee when renting out
Investing in new construction notably allows for significant tax exemption through certain laws such as the Pinel law. If you wish to buy a new property to rent it out, this scheme allows for a tax exemption ranging from 12 to 21% of the investment amount depending on the rental period. It is also determined according to the price ceiling. Initiated in 2014 and extended until 2024, this law aims to support the construction of new housing especially in so-called "tight" areas. Depending on your classified zone from A bis to C, you can benefit or not from the Pinel law.
Investing in a new property for a secondary residence also allows you to rent out this property and find potential tenants. A new property attracts more than an old one. You have a rent guarantee and thus, it allows you to repay your investment.
Personalization of your future home
Choice of colors, materials, and layout, it's easier to personalize a new property especially during construction if you make a purchase on plan. The VEFA (Sale in Future State of Completion) is a right that allows you to arrange it as you please. However, this may incur some additional costs.
A newly built property is often devoid of personalization, with white walls and sleek materials, you can easily project yourself. Find our new programs at Allard Cooke & Associates!
