When it comes to buying new construction as a second home, one of the most important factors that you should consider is the choice of new construction. This type of home can be more cost-effective than renovating an older one. Modern second homes that are move-in ready are equipped with energy-efficient features and modern kitchens. These houses also have lower carbon footprints and better insulation Modern second homes that are move-in ready are equipped with energy-efficient features and modern kitchens. These houses also have lower carbon footprints and better insulation. Living in a new construction second home can come with various tax benefits. In some regions, property taxes may be lower for newly built properties compared to older ones. Additionally, some governments offer tax incentives for energy-efficient homes, further reducing your tax burden.
The Advantages of Buying New Construction
If you plan to rent out your second home, new constructions offer enhanced security for key boxes and alarm systems. They prioritize anti-intrusion security, reducing concerns about distant property management. The choice of new construction over older homes can provide you with various advantages, such as better security, lower costs, and move-in readiness. These are some of the reasons why people prefer to buy second homes from new construction.
Securing Financing for Your Real Estate Project
The key to buying new construction lies in meticulous budgeting. When it comes to new properties, this task is notably straightforward. The absence of renovation work, which often brings unexpected budgetary surprises, simplifies matters. You need only factor in the property’s purchase price, notary fees, and banking expenses. In addition, consider potential costs associated with customizing your dwelling, such as interior design and decor. Regarding your real estate loan, our advice is to foster competition among banks to secure the most favorable borrowing terms. It’s imperative to request a comprehensive quote, encompassing the nominal interest rate, administrative fees, the guarantee amount, and the insurance premium rate. To ensure an accurate budget calculation, be diligent in incorporating notary fees, various banking charges, and the expenditure associated with home enhancements.
Selecting the Ideal Property: Location Matters
Before finalizing your purchase of a new property, it’s prudent to conduct a comprehensive neighborhood evaluation. Pay heed to potential disturbances, assess transport accessibility, scrutinize the availability of green spaces, and more. We also recommend consulting local authorities or online sources to gauge the proximity of educational institutions, childcare facilities, and other public services. Furthermore, it’s crucial to scrutinize the “site plan” and the detailed brochure provided by the property developer. The site plan will grant you a holistic perspective of the real estate project, delineating the construction zone, revealing terrain topography, detailing scale, access points, and utility connections, among other vital aspects. The descriptive brochure will furnish you with exhaustive information regarding the materials employed in the property’s construction.
Executing the Reservation Contract
Once you’ve pinpointed the new property that aligns with your needs, it’s time to formalize the reservation contract. This agreement delineates the property’s attributes, the sale price, the anticipated date for the notarized signing, and the delivery timeframe. Upon signing, a security deposit, typically amounting to 5% of the property’s value, is obligatory. The signing of the notarized sale agreement, known as VEFA (Vente en l’État Futur d’Achèvement), usually transpires between 3 to 6 months post the reservation contract. This contract should encompass details pertaining to the property, the real estate loan, the completion guarantee, and should incorporate a payment schedule.
New Property Acquisition: Staggered Payment Structure
In the context of buying new construction, payments are disbursed progressively throughout the construction’s various phases, such as foundation and weatherproofing stages. At each juncture, the developer will dispatch a communication to the purchaser (or the bank), soliciting the release of a predetermined sum. During the evolution of your forthcoming residence, it’s imperative to acknowledge that unrestricted visits to the construction site are not feasible due to safety considerations. Nonetheless, the developer may proffer a visitation schedule, often synchronized with significant milestones in the project’s development. These visitations serve as opportunities to verify that the work aligns with your expectations. If discrepancies or defects are identified, you possess the option to voice concerns and request rectification from the developer prior to the handover of keys.
Handover Day: A Decisive Milestone
The moment of receiving the keys signifies a critical juncture in the pursuit of your new property. Preceding the final inspection visit, it is advisable to commit specific requests and critical facets to memory, allowing for a scrupulous examination. This entails considerations like room coloration, electrical connections, door opening orientations, locking mechanisms, wastewater discharge, and more. In instances of substantial issues, be they non-compliance, construction anomalies, or concealed defects, you can avail yourself of new property warranties to facilitate necessary repairs.
Are you interested in buying new construction on the French Riviera ? Contact us for a first selection within your budget.
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