REAL ESTATE: NEW OR OLD?
Are you about to buy and still hesitating between new or old?
While the old represents the majority of the real estate market with nearly 720,000 transactions in 2014, against approximately 85,000 in the new, the new market has many of its own attractions and significant financial advantages.
Non-negligible purchasing aid systems
Whether you are a first-time buyer or a rental investor, by buying new buildings, you can benefit from advantageous assistance schemes.
The zero rate plus loan
The zero rate plus loan is an interest-free loan that finances the construction or purchase of new housing, with or without work.
Its counterpart in the old one can in fact only be applied if you are carrying out very important work and above all only concerns a limited number of towns.
The Pinel device
The Pinel Law is a device to help the acquisition of a property as part of a rental investment which takes the form of a tax reduction granted to the buyer, in exchange for a commitment of longer or shorter rental periods, while respecting the criteria of tenant resources ceilings and applied rent ceilings.
The rental commitment can be 6, 9 or 12 years and it is this duration which directly influences the size of the tax reduction finally obtained.
This reduction is thus set at 12% of the purchase price within a limit of € 300,000 for a six-year rental commitment, 18% for 9 years, and 21% for 12 years.
Another important point: this device can be applied even if you plan to allow your children to benefit from this rental.
Lower notary fees
It is often ignored that the purchase of new housing is not subject to transfer taxes like old housing, but "only" to real estate VAT at the rate of 20%. Note also that some devices, since January 1, 2014, may allow you to benefit from reduced VAT at a rate of 5.5%.
To benefit from it, you must acquire a property located within a radius of 300 m around an ANRU area - an area with a housing shortage.
A rate of 10% may also apply in the event of the acquisition of so-called "intermediate" housing, located in areas eligible for the Pinel scheme.
New housing is exempt from property tax for the first 2 years from the completion of the work, unless the Town Hall decides otherwise.
For condominium fees, you will also save money since there will not be major work to plan before a long time, such as the renovation of the facade or common areas, the installation of an elevator, the repair of the cage staircase ...
Finally, the environmental standards respected by new constructions allow you to make substantial savings in heating and / or air conditioning, while guaranteeing you optimal comfort of life.
QUALITY AND SAFETY ASSURANCE
Labels and standards offer a number of guarantees on electrical installations, heating solutions, etc.
The new buildings also provide a number of services that make everyday life easier: parking, terrace, lift, security, ecology, private park.
When you buy new, guarantees cover the risks of damage and construction defects over several years:
- The two-year guarantee covers the risks of malfunction of technical installations in the building. It allows you to require for two years the repair of all equipment that is not an integral part of the construction, for example doors and windows, shutters, movable partitions ...
- The ten-year guarantee covers the risks related to the stability of the building for ten years (waterproofing, roofing, foundations, etc.)
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