Build new or resale
Why have a new build house rather than purchasing a resale ?
Here are the pros of a new build:
- Your home is designed according to your needs and choices.
- There is no stamp duty to pay on new builds, only approximately six per cent of the Notaire's fees on the plot only, compared to the usual seven or eight per cent Notaire's fees payable on a resale purchase.
- No payments due until the foundations are laid - around 25 per cent of the total purchase price.
- Further staged payments are made as the building progresses. No lump sumps to be paid upfront.
- Ten year guarantee on construction.
- Building companies are backed by a bank guarantee which would be covered if they go bankrupt. The construction would get finished.
- As the property will be brand new, it will be low maintenance. You won't have to do any DIY for a few years.
- Being highly efficient houses, you will save money in the long run (triple glazing, excellent insulation, high efficiency heating system, etc).
- New houses tend to be easier to resell on the French market.
- Good investment potential.
- You are exempt from property tax (taxe foncière) for two years.
And the cons:
- Purchase is made off-plan so you can not see exactly what you are buying, however similar, or show houses built by the same builder are available for viewing.
- The construction can take up to 12 months.
- It will take a few years to have a mature garden.
- New build properties don't have the same features than old cottages (old wooden beams, stone fire places, etc).