Very often a comparison is made between the new and the old when clients are looking to purchase a property however the two options could not be more different. It is true to say that older buildings offer a certain charm that can no longer be found – prestigious addresses in historical quarters, noble materials, high ceilings, spacious volumes and original craftsmanship. Investing in new builds does however offer many attractive advantages. It is thought that the decision process required when buying both new and older properties differs tremendously, when buying an older property the decision is purely emotional, it remains a great pleasure to own a little piece of history. When visiting older apartments the reaction is often immediate, the client either loves or hates it! It is for this reason that in general it is necessary to visit twice as many older apartments as new ones before drawing any kind of conclusion. The opposite reaction is witnessed when visiting newly build apartments and villas. Decisions are often made based on logic and well thought through imperatives. This is not to say that new build acquisitions are made without emotion but the technical, pragmatical and Cartesian views often take pole position not forgetting long term investment strategies. Please find below 10 reasons listed in order of importance leading to the purchase of a new property rather than that of an older property.
When purchasing a new build the buyer also benefits from the latest technological advances and modern equipment giving the highest possible level of comfort. Property developers are obliged to respect and apply the latest manufacturing standards which include phonic and thermal insulation, heating and air conditioning machines to name just a few making new build properties ever more energy efficient and ecologically friendly. Architects are increasingly conscious about the general lack of space and make every effort to ensure that every possible square foot of floor space is optimized.
With ever developing security rules and regulations, all property developers are obliged to follow suit. All new builds conform to the latest fire and anti-seismic regulations and must also include the necessary modifications making the use available for all individuals with a disability. Accessories once considered to be a luxury are now installed as standard such as video-phones, secure window locking systems, reinforced front doors and smoke detectors in both private and communal areas.
When buying a new build property off plan, the purchaser is often able to personalise his /hers property by choosing from a wide choice of fixtures and fittings, reducing costs yet still benefitting from the constructors guarantee unlike when purchasing an older property that requires modernisation.
It is often believed that the price of buying an older property is inferior to that of a new build – this is not necessarily the case! It is true to say that when comparing the levels of comfort and security found in the two types of property, a new build can offer the latest readily installed equipment, often the cause of very costly and time consuming renovation projects in older properties. It is also important to realise that if a buyer becomes involved early on in the commercialisation of a new build program a saving of 15 – 20% is not uncommon as the predicted price of the properties can often fall depending on the market stability and the volume of properties sold.
These fees of transfer usually “notary fees" are added to the price of the purchase and they must be paid by the buyer in most of the cases. These costs essentially are made up of taxes (8/10th), the other costs and the administrative outlays (1/10th), and finally of the payment of the Notary (1/10th). They can possibly be increased by fees of mortgage in the case of a banking financing.
The notary fees for the old properties (except fees of mortgage) are approximately from 8 to 9 %, while for new properties these fees are of 2.5% to 3 %.
Common to the purchase of all new products, a constructor’s guarantee is offered with all new build programs. Here are the three types of guarantee available.
Thanks to the use of the latest products and techniques concerning thermal insulation, heating, hot water production and air conditioning substantial reductions are made in terms of electricity consumption and billing. The shared residence charges are minimal in most new build buildings and owners are not subject to high renovation and regulatory safety works that are often needed in older properties.
Offered on all new build apartments and can be substantially extended if the property boasts energy performance levels superior to those required by the law. Many options including the recent ‘Loi Scellier’ are available in France relating to the different tax exemption possibilities. It is highly advisable to consult a professional in order to choose the best adapted formulas for each individual’s fiscal and patrimonial situation.
If like 90% of home owners you require a mortgage in order to complete your acquisition, many very attractive state funded packages are available.
Access to all other forms of financial support also available including classic mortgages, bridging loans etc.
All real estate investments are made with the aim of developing a person’s property heritage. It is necessary to plan intelligently any investment made in “Stone” in order to maximize after sales profits. It is clear that the 9 previous points contribute to the argument and further accentuate the fact that investing in new build programs generates the best returns and the best mid to long term profits.