New-build property attracts many buyers and investors because of its comfort, security and amenities... But many people think it's unaffordable. Wrong! In fact, there are a number of "tricks" you can use to buy a new property at a very affordable price.
Borrow at 0% interest
The zero-rate loan is a godsend for first-time buyers on modest or intermediate incomes wishing to buy their first principal residence in a new-build property.
This interest-free nancial boost is an ideal complement to a "conventional" loan (conventional loan, action logement loan, prêt épargne logement loan, etc.) and can finance up to 40% of your future purchase or construction (up to a maximum of 130,000 euros). As with any other loan, your bank will study your application and profile beforehand. The PTZ is not granted offfice for every application.
Subject to the borrower's financial means, the PTZ is only granted in areas classified as "tended".
Take advantage of all the additional assistance available
In addition to the great classics(PEL and PTZ), there are many other financing options available to help you make ends meet when your budget is a little tight. It's not possible to cover them all in detail here. For example
- the action logement loan, which can be granted to employees of private companies with at least 10 employees. It can finance up to 30% of the cost of the transaction.
- the social accession loan. This means-tested loan can finance the entire purchase price.
- local grants from communes, départements or regions should not be overlooked. These grants are often means-tested, and the conditions under which they are awarded can vary from one local authority to another. Don't hesitate to get in touch with these bodies or withANIL.
Reserve your home at the right time
A new housing development is about to break ground. And in the area that suits you best. Take the opportunity to reserve your apartment. When new developments are launched, attractive sales conditions are offered to the very first buyers (free services, free interim interest, etc.). Conversely, end-of-program offers can also be very attractive. At the end of construction and marketing, one or two apartments may not have found takers. Since these "unsold" apartments are expensive for the developer, it's best to sell them quickly, even if it means lowering prices. Whether at the beginning or at the end of a program, there may be good opportunities to be seized.
Choose your floor
This may seem anecdotal, but it's not. Buying on the first floor or garden level may not be the first thing that comes to mind. Fear of noise and being seen by passers-by, fear of easier burglaries... these are just some of the preconceived ideas that scare buyers and investors away. Not only is this unproven, but every effort is made to make this type of housing more attractive (small gardens, separate hedges, etc.). If the building doesn't have an elevator and you have trouble getting up the stairs, or if you have a pet, this is the ideal solution. What's more, you won't have to pay any elevator maintenance charges. Still skeptical? One last argument: you can expect a price discount of between 20% and 40% compared with other apartments on the same floor. Who can beat that? A real bargain, especially if you're on a tight budget.
Opt for rent-to-own
Rent-to-own allows low-income households to become owners of the property they occupy as tenants. Advantages include reduced VAT, exemption from property tax for 15 years, and no interest charges. In short, you save a lot of money. The purchase procedure is special in that it takes place in 2 stages. It's a bit like leasing a car with a purchase option. But this is a home. During the rental period, the future owner pays a fee that includes the rent to occupy the property and the purchase price, which is used to make up the deposit required at the time of the final deed of sale.
Discover participative housing
This concept, so popular with our Eastern European neighbors (Norway, Germany...), is starting to make inroads in France since the Alur law gave it a legal framework. The principle is simple: several households come together to build a real estate project comprising private spaces (the homes) and shared spaces (gardens, laundry, etc.). They all participate in the design of the building and the choice of materials. Once the building has been constructed, the residents manage the property themselves. By pooling the resources of participating households and making joint decisions, construction and operating costs are reduced.
Keep an eye on notarial real estate auctions
A divorce where no one agrees and no one wants to make concessions, an estate where everyone is torn apart... and the property often ends up at auction. Sad as it is, the proverb "one man's loss is another man's gain" applies once again in these situations. You may come across a rare gem at an unbeatable price. But don't get too carried away if you're seduced by an auction. Auctions are all about payment. Unlike a traditional sale, there are no conditions precedent if you don't get your mortgage. So calculate your budget carefully before bidding.
Marie Christine MENOIRE