New Build in France Vs French Resale Property from FrenchEntrée.com

31st July 2010

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New Build in France Vs French Resale Property

What are the advantages of a new build property over a resale?

So you’ve thought about buying a beautiful old country cottage in France, but doubts about its repair and maintenance has led you to consider a new build. In recent years, buying plots of land in order to build new houses - see our feature on why overseas buyers are choosing new build property in France, and buying a new home from a new build specialist such as A Place in France, has increased in popularity with overseas buyers in France. This article outlines the pros and cons of buying a new build versus a resale property.

The following table demonstrates some of the cost benefits associated with new build properties:

New Build Costs
Pros	Cons
The deposit for a new build is generally lower at about 5%	The VAT is included in the property's cost, resale property's do not have a VAT charge
The legal fees are generally lower at about 3.5% compared with 6% to 8% resale	New build buyers often encounter unexpected costs such as landscaping, walls or fences
Being able to spread the costs of the payments may work in your favour, especially if you are releasing money from funds or want flexibility in payments
With new builds the only extra cost, on top of the purchase price is the notaire's fees
The cost of land is relatively cheap and when combined with the construction work can allow you to get more house for your money

New Build Villa

New Build Apartment Complex

If you are looking for a permanent home, many factors can influence your choice of property, including location. The following table highlights some practical issues which may influence your choice between new build and resale:

Permanent Home - Pros and Cons
New Build	Resale
The completion period, from signing the contract to moving in will usually take between 12 and 16 months	The completion period from signing the contract to moving in should only take between 12 and 16 weeks
You will be signing a contract for a property which only exists on paper, though a show home may be possible to view	You will be able to view the property in its entirety
A new kitchen and bathroom should mean that all utilities, electricity and plumbing are working	There may be possible maintenance issues: repairing, replacing and redecorating results in hidden costs
There will usually be a 10yr guarantee on construction	Renovation opportunities may mean that the property can be sold for considerable profit
With a new build, you will have the chance to specify the design and dimensions of your home	Traditional French properties have character, charm and history which modern houses lack
In residential developments, there are often shared facilities such as a gym or pool and maintained gardens	The garden may be bigger and already established, you may have a good view
You are likely to have your own garage or parking space

If buying a second home, finding one with good letting potential is sensible, incase the market changes and you cannot quickly sell. If you plan to permanently let out your property, there will be a number factors to consider when deciding between new build and resale:

Holiday Letting - Pros and Cons
New Build and Leaseback	Resale
If letting a new build in a complex a Leaseback* scheme may be worth considering because sometimes a rental management company is included to provide cleaning, linen and breakfast services	With a resale you will have to market the property and find somebody trustworthy to clean and maintain the property for guests
You can design the property to insure that it attracts guests	An older property can be attractive for holiday makers
In a complex, extra facilities such as a gym or pool and maintained, beautiful grounds may attract guests	You may need to renovate the property to make it appealing/ practical for families
The modernity of the property may discourage visitors who are looking for a traditional style property in which to stay	Utilities may be starting to develop faults and you will need to repair or replace them to insure that your property is safe for visitors

*Leaseback schemes are popular with investors, please visit our Leaseback Property n France Zone for more information.

Visit our New Build Zone for further advice about buying a new build property in France.

At FrenchEntrée we can help you find and purchase your dream home, view our current resale French properties for sale.

All new build images were supplied by the new build specialists A Place in France www.aplaceinfrance.co.uk

The conditions in your Compromis de Vente
A beginner's guide to buying French property
Buying new build in France – the legal process
The FrenchEntrée guide to searching for property in France
Why French property remains a favourite for investors
France is still viewed as good value for money - results of our buying in France survey
French Property Trends 2009

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