Property remains one of the most popular areas to invest in and to look after your future, in particular to provide funds for your retirement. Faubourg Immobilier works with investors on the purchase of their brand new property. Here are some of the advantages of investing in new builds.
Cut your taxes thanks to the Pinel law
Applicable again, the Pinel arrangement is possible in zone A (Côte d’Azur, around the French districts near Geneva, in Outer Paris, Aix-en-Provence, Aubagne, Lyon, Lille, Marseille and Montpellier…), zone A (2) (Paris, the immediate suburbs), and zone B1 (conurbations with a population of more than 250,000 inhabitants). The principle? You need to rent out your property for at least six years to benefit from a cut in your income tax of 12, 18 or 21 % of the price of the property.
NB: it is possible to rent out the property to your parents or children.
Reduced legal charges and taxes
When buying older property, conveyancing comes to around 8%. When you buy old property you have to pay capital transfer taxes. They do not apply to new property. So solicitors charge between 2 and 3 % for new property. This is a major difference which attracts many investors.
Local property tax exoneration
The local part of the property tax can be avoided for up to two years after the building is complete. To benefit from this exoneration, you need to make a declaration to the tax office within 90 days of the completion date. NB Contact your local authority, as this exoneration does not apply to all towns depending on their budget.
Housing better suited to current needs
A major new feature this year from 1st October 2019 is that not all new builds will have to be entirely suitable for the handicapped. So entrance halls and toilets for example will better suit the requirements of the occupants. Of course, all buildings will still be suitable to the needs of the handicapped.
The latest heat and insulation standards
It is important to note that new builds adopt the latest thermal insulation standards (RT 2012). These offer a guarantee of insulation that is better than before meaning you can achieve energy savings from your heating bill. Another advantage is that sound insulation is also better than in older buildings.
Connected to fibre networks
Since April 2012, all communal properties must be connected to fibre networks. This is something that is very much appreciated and means that the buildings are at the vanguard of technology. In our connected world, this type of equipment can be a deciding factor when purchasing.
No work to do
When you buy new property, you can be certain you will not have any major work to do for ten years. This makes it easier to manage your property and investors can feel more relaxed. In addition to that, new builds are delivered with many guarantees on various levels if there is a problem with the property. Please contact us to find out more
Made to measure constructions
Finishings, carpets, flooring, fittings… Most developers allow the purchaser to determine which materials are used and the various finishings. You can thus adapt the property to your taste or that of the future occupants. Investors will be pleased with the quality of the finishings on offer.
Top quality build
Connected homes, paring spaces, large balconies, private gardens… A quality build is available when you buy new property. You can be certain of getting luxury with a high market value.
NB: all of the new constructions with at least three upper floors must be equipped with a lift.
Attractive properties to rent
Thanks to your new property (with its quality build and comfort), you will be ahead of your “rivals” in the area. Those who want to rent will see the quality of the build and the potential savings thanks to the RT 2012 standards. An extra possibility of renting out your property and finding a tenant quickly.
Find out more about the latest Faubourg Immobilier programmes. Please contact us to talk about your project.