Are you looking at Buying A New Home On The French Riviera? Or investing in a new project? In this article, we’ll discuss why you should consider investing in a new property purchase in 2022.
Buying A New Home On The French Riviera
It is important to remember that investing in a new property development program has many advantages! Including exemption from property tax, developer and manufacturer’s guarantees, a large VAT reduction and energy savings. It is an investment program that is highly sought after by investors – thanks to benefits such as the Pinel law tax exemption and economic and ecological advantages. For this reason, the new development market is booming in 2022! There are so many advantages of Buying A New Home On The French Riviera.
Tax benefits
With the new real estate development scheme, you can enjoy tax exemptions on your investment income. The Pinel law offers a tax deduction of 12-21% on property prices for 6, 9, or 12 years of rental. The Censi-Bouvard law allows VAT recovery and an 11% tax reduction over 9 years for furnished rentals.
A Reduction Of Notary Fees
Registration fees (notary fees/stamp duty) for old real estate are typically 6-7% of the property price. However, for new real estate, the tax is only 2-3% of the house price.. This can indeed make you benefit from a reduction of thousands of euros. Finally, note that the buyer of a new home will be exempt from property tax on this home during the first two years.
Security
If you choose to invest in a new real estate program, will benefit from the latest energy innovations and acoustic insulation. A new home means that renovation work is not required – and you are unlikely to acquire any unpleasant surprises. The ten-year guarantees and insurances provided by the developers help to secure the future of the home.
Buying “off-plan” or under construction (VEFA) raises concerns about project completion. Fortunately, neither the developer nor the notary can finalize the sale without prior buyer protection. This protection is guaranteed by a bank or insurance company, ensuring the completion of the work as described in the plans and contracted services.
Developers can make modifications to the interior plan to suit the needs of the buyer – often without significant additional cost.
PRICE PAYMENT SCHEDULE
The promoter can market his pre-planned project as soon as the building permit has been received. He can’t cash money but can accept a reservation with payment to a secure escrow account held by a notary. The reservation is binding for the developer but not for the buyer, who can withdraw before signing the sales agreement and within 10 days after. Additionally, the developer can’t access the funds in escrow until obtaining the construction completion guarantee.
Once the final agreement has been signed, the price will be paid as the construction progresses and is approved by the architect. This is a great advantage because, throughout the construction, part of the final price remains in your hands until completion. The balance is due upon receipt of the property – following a physical check by yourself of the property yourself.
PRICE EVOLUTION DURING CONSTRUCTION
One of the great advantages of an off-plan acquisition lies in the evolution of the prices of the units for sale. Given the definition of the sale price at the time of booking, the price confirmed and contracted by the purchaser remains fixed until delivery. As the marketing progresses, the units are and the promoter begins to bring in the funds to advance the work and the financial security of the operation is established. It can then be decided to increase the prices of the units remaining for sale. These increases are normal and allow the promoter a better return on his investment.
