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BUYING OFF PLAN LEGGETT MAGAZINE
Brigitte Lheritier and
Stephanie Chopin explain
why buying off-plan can
be an excellent option.
- Choice for the client of the location
and situation of the property on the
plot, choice of build materials, and
orientation of the house.
- Mandatory guarantee of project
completion and delivery: the client can
then be sure that the project will be
completed on time.
- The property benefits from
guarantees and insurances: general
damage, 10-year guarantee on the
structural work.
- Lower maintenance and running
costs: the environmental construction
standards promote energy savings,
and running costs of the property are
significantly reduced.
- To finance the acquisition, the
client can benefit from advantageous
loans (depending on their income),
such as the zero-rate loan (called
"PTZ") and the social access loan
(called "PAS").
- When it comes to a new building,
acquisition costs are reduced. The
client will only pay the property tax
and legal fees, in total between 2.3%
and 2.7%.
France is facing a critical
lack of housing. According
to recent studies, 500,000
homes per year need to be
built to fix this issue. Buying a
home off-plan in VEFA (Vente en l'état
futur d'achèvement) means purchasing
a property that has not yet been
built, or a property that is under
construction.
The idea is simple: the client
chooses a type of property which is
specified on a plan, signs a contract,
and pays a deposit. The deed of
sale is signed approximately three
months later. The balance of the
purchase is paid as the construction
of the building progresses, with stage
payments sent to the developer.
The sale of a property in VEFA
is a "protected" sale, thanks to the
building and financing guarantees as
well as the undertaking of "perfect
completion", these are underwritten
by the promoter, for the benefit of the
purchaser.
For the customer, the advantages
of a purchase in VEFA are numerous:
- Many promoters allow buyers to
participate in the interior design of
their house, which helps create a
living space adapted to buyers' needs
and considers their personal tastes
in terms of flooring, paint, and other
fixtures. Of course, the requested
changes need to be technically
feasible.
BUYING A NEW
HOME OFF-PLAN - Thanks to these lower Notaires'
fees, the client benefits from a larger
purchasing power (+5%).
- The total or partial exemption
from property tax for two years,
depending on the fiscal policy of the
municipality or department.
- Investors can benefit from the Pinel
Law tax exemption scheme: the tax
advantage is 2% per year on the total
amount of the investment for 6, 9, or
12 years.
- More sustainable investment over
time: recent apartments are more
attractive and can be sold more easily.
The downside of these advantages is,
of course, that you have to wait until
the house is built before you can move
in!
Do not hesitate to visit our website
to discover our VEFA portfolio. Our
specialists are there to guide you in
your purchase.
Brigitte Lheritier is an agent in the
Rhône-Alpes and Stephanie Chopin
is part of our VEFA team.