What is the purpose of my real estate project?

The second stage of a real estate project is determining my specific goals. For a real estate project in France, I decide if I wish to buy an accommodation, invest in rental property, build a house or conduct renovations.

I wish to acquire a home in France

Being a homeowner offers many advantages such as building an estate and preparing for the future... But remember to take your time before deciding. Buying property is an important decision that carries great responsibilities for many years.

I wish to invest in French real estate

French real estate is an ideal investment for several reasons: create additional income, prepare for retirement, pass on my estate, enjoy tax benefits, etc.

I therefore choose:

The kind of property

  • Apartment
  • House
  • Parking space
  • Land
  • Commercial premises
  • SCPI - Sociétés Civiles de Placement Immobilier or "Pierre-Papier" investments (real estate investments funds).

New or existing property

Older properties obviously have many advantages, but new properties also offer numerous benefits (tax-free plans, lower notary fees, lower charges, etc.).

Empty, furnished or tourist rentals

  • Large accommodations are more easily rented empty; most of the time, tenants already have their own furniture. My income is collected as property income. I can choose between the actual earnings tax regime and the micro-property tax regime.
  • Furnished properties offer higher rents than empty properties. I can choose between micro-BIC and the simplified actual earnings regime.
  • Tourist rentals are best for tourist destinations. The advantages include higher rental prices and more profitable renting.

 

I buy a property in need of renovation

The cost of construction can be added to the total amount of my real estate loan. I call upon an expert who will estimate the additional amount needed to purchase my future accommodation and carry out the planned work.

Once the budget is established, I must contact specialists to help with my project. It is extremely important to find the right contractors, determine my needs with them, establish a schedule and begin renovation. I must also remember to inquire about damage insurance for the work to be done.

I decide to build a house

I decide to make my dream come true: to build my own house in France. It is a thrilling challenge, but like any project, contains its share of pitfalls. Planning out every stage of construction is essential. I must take everything into consideration, from the choice of land to the finishing touches on my future home. I must not neglect any detail.

Choice of the land

I start by consulting the POS (Plan d'Occupation des Sols, the zoning map) or the PLU (Plan Local d'Urbanisme, the local urban plan), which are available at the town hall where I wish to build my property. These documents will show me more about available building spaces.

I can also refer to the urbanism certificate, which indicates the ground condition in the urban planning area and any administrative limitations. It also lays out various architectural standards to be respected (roof shape, color of materials, etc.). Lastly, I inquire about any natural risks (earthquakes, floods, etc.).

Choice of the builder

If I would like to design my own home, I call upon an architect who will draw up plans according to my wishes, help me choose a builder and monitor the work.

If I wish to purchase a standard house, I look for an individual homebuilder. I then choose my house in a catalogue and receive it turnkey.

I obtain a building license

To obtain a building license, I must file an application at the city hall of the municipality where I will build my property

I define my property search terms

After establishing the purpose of my investment, I must define the specifications of the property to be acquired. Understanding the expectations I have for my future accommodation will help me find it quickly.

After deciding between purchasing a new or an existing property, I can choose the type of structure that suits me:

  • Apartment;
  • Individual home, single or split-level structure, "green" house, etc.

I must also determine the location of my future acquisition: downtown, suburbs, countryside, etc.
Finally, I determine the major specifications for my future accommodation:

  • Installations;
  • Number of rooms (according to family size);
  • Living space;
  • Yard or no yard;
  • Security;
  • Garage;
  • Distance between home and work, local shops and businesses, schools, transportation, etc.

If I am already a homeowner in France...

Do I sell or buy first?

The best solution is to sell the first home in order to know how much I have available for my future purchase. However, it is very difficult to manage sale and purchase dates. When I have no property and am still looking for my dream house, I incur additional costs: furniture storage, rent, relocation.

However, I need to know how much my current property is worth before buying a new accommodation. As I am not yet in possession of the proceeds from the sale, I can borrow a part of this amount from a lender (generally between 50 and 70% of the value of the property to be sold), under a loan purchase/resale agreement, which is not subject to interest. This loan is to be reimbursed upon the sale of my current property.

You are committed to reimburse your mortgage Loan. Verify your ability to reimburse before committing.