In many regions, buyers' mouths are watering with the desire to buy a house. Now is the time to concoct a fine acquisition, thanks to the quality products available from notaires.
If there's one investment that can be put together à la carte, it's real estate. Whether you're looking for a place to live or a place to save, real estate offers something for everyone. So much so, in fact, that buyers are going crazy about it, even during this health crisis. Properties with gardens are a great way to get away from it all, and find the confines less bitter. For some of you, houses in the regions open up new horizons for teleworking or living. Proof of this dynamic trend is the fact that the number of transactions at the end of the year is just 5% below the 1,075,000 sales recorded in December 2019, a record-breaking month! The French people's appetite for real estate does not seem to have diminished; in fact, it seems to be feeding off the uncertainties generated by these troubled times. Today, we're giving you the opportunity to salivate over a few real estate projects that are sure to make you fall in love. Let's take a look at some of the homes you can buy through your notaire.
Leaving, but not just anywhere!
Economic attractiveness plays a key role in the choice of where to live.According toINSEE, the medium-sized towns most attractive to working people are concentrated in the Rhône-Alpes, Brittany, Normandy, Centre Val de Loire and Atlantic coast regions.
Family formula
The house with garden
The combined effects of confinement and telecommuting are prompting many of you to pack your bags and head for medium-sized towns. Especially if you live in an apartment in a large conurbation! The need for space and nature could well lead you to make a dream come true: living in a house with a garden!
- Focus on location: everything that contributes to the value of a property depends on the quality of its geographical location. When you're looking for that coveted house, you need to set your criteria based on proximity to shops, schools and transport links. That's the trifecta of a good location. And with the growth of telecommuting, there's another parameter to consider: Internet speed and fiber connection. Under these conditions, the property looks set to appreciate in value. If it's time to resell, buyers are sure to come forward.
- Keep an eye on the general condition of the property: with the current dynamism of the real estate market, transactions are going well. When selecting properties, it's important to pay attention to the quality of the building. This involves reading the technical diagnostics and, ideally, the notary's expert report. Remember that the notary can determine the value of a property using valuation methods that have been tested and approved by the notarial profession. In any case, any seller who has built or commissioned the construction of a property in the 10 years preceding the sale owes the buyer a ten-year warranty. This covers defects that affect the solidity of the building or render it unfit for its intended use (article 1792-1 of the French Civil Code). This is a useful point to be aware of, as some so-called "do-it-yourself sellers" carry out work without calling on the services of craftsmen, and are unable to produce the corresponding invoices.
- Evaluate the potential: "Who can do more can do less", and the value of a house also lies in its potential for transformation. That's why it's a good idea to consider whether the surrounding land is suitable for building. If an extension is envisaged, it's important to know whether the planning application will be successful.
The house will also need to be refreshed. In 2021, heating,insulation and ventilation work will be eligible for financial assistance under the MaPrimeRénov' scheme. This scheme is open to all owner-occupiers. As for financing, this can be advantageously provided through the zero-rate loan (PTZ), granted subject to resources and property location.
The chef's gift! The purchasing power of a house, based on a monthly payment of €1,300/month over 20 years, will reach 148m2 in 2020, compared with 134m2 in 2010.
Now's the time to borrow!
Last December, the conditions for granting home loans were relaxed:
- the effort ratio limit (monthly payments as a proportion of household income) was raised from 33% to 35% ;
- the maximum loan term has been extended by two years, from 25 to 27 years, particularly for new-build purchases;
- and the rate of flexibility granted to banks, relating to the number of files authorized to fall outside this framework, has been increased from 15% to 20%.
Favorite formula
Farmhouse renovation
Here's a formula that's sure to please! Based on old stone, with breathtaking volumes and a vast plot of land, the farmhouse to renovate is sure to make you salivate. All the more so as it can be used for a wide range of projects - living, working, housing...
- Successful prospecting: these highly visible properties are highly coveted. That's why it's a good idea to call on the firm's negotiation department, which offers specific skills. All the more so if you need to organize your search in a region other than your current home. The notary can delegate his mandate to a colleague based in another département. The notary's office can then take charge of visiting properties of interest, and negotiating with the sellers.
- Find the right plans. This type of acquisition is usually accompanied by major renovation work. It's important to get in touch with an architect or craftsmen to put a precise price tag on them. The value of the building will be all the greater if the restoration work is carried out to the highest professional standards, and comes with the corresponding ten-year guarantees. In addition to the building's potential, it's also important to consider the possibility of dividing it into parcels. This makes it possible to detach a piece of land from the property as a whole and sell it. This can provide cash to finance renovation work, for example.
- Why not take advantage of this acquisition to find a new career path? This is an opportunity to identify a farmhouse that could be used to create a bed and breakfast or gîte, for example. The gites-de-france.com/fr website provides ideas...
- In addition to the MaPrimeRénov' scheme, owner-occupiers can also benefit from financial assistance from theAnah for home improvements. Energy saving certificates are awarded to finance thermal renovation work. The zero-interest eco-loan, for example, allows borrowers to borrow between €7,000 and €30,000 over a maximum of 15 years, while the reduced VAT rate is limited to 5.5%.
The chef's gift! The "Action cœur de ville" program, which covers 222 communes, supports investors in the renovation of old buildings with subsidies of up to €1,000/m2.
According to a survey carried out by the "Observatoire du Moral Immobilier", 72% of homebuyers say they are prepared to carry out renovation work on their future home, whether to gain more floor space (19% of respondents), create an outdoor area (13%) or pay less for their home while maintaining its location (40%).
A la carte menu
New homes
It's hard to resist the lure of new construction. It's an opportunity to live in a house you've always imagined, to choose the plans, the materials, the location...
- Find the right plot of land: in addition to understanding the gradient of the land, orientation is one of the most important factors, as it plays a major role in the well-being of the occupants and in the energy consumption of the home (exposure to sun, wind and rain). Town-planning regulations are an essential component, as they are sometimes accompanied by certain restrictions (listed sites, historic monuments, etc.). This can affect the nature of the building project. It is therefore important to apply to your local town hall for an urban planning certificate. Although not compulsory, this is a good way of finding out about the administrative rules and taxes (taxe d'aménagement, taxe foncière...) applying to the land in question.
- Take advantage of good insurance: with a new build, you're assured of a property that meets today's quality standards, complies with building regulations and offers a wide range of guarantees (ten-year guarantee, biennial guarantee, etc.).
- Good value for money: One of the advantages of individual construction is its value for money. According tofigures from the French Ministry of Ecological Transition, the average cost ofa 120m2home on a 900m2 plot is€250,000. That's €80,000 to €100,000 less than for a new apartment in the inner suburbs of a major city. It's no wonder that buyers prefer single-storey homes. According to construction professionals, nearly 60% of French people prefer them. They appeal for their ease of maintenance, accessibility, everyday practicality, speed of construction, and safety for children and the elderly. All these factors combine to make them easier to resell.
The chef's gift! The amount of the zero-rate loan for financing a new build can be up to 20% of the total cost of the project in large conurbations in zones A bis, A or B1.
1.20% - Average mortgage rate in November 2020
Source: Observatoire Crédit Logement CSA
Marie-Christine Ménoire