 Introduction to buying off-plan, new-build & leaseback properties in France 
 The demand for off plan, new-build and leaseback properties in France has been consistent over the last 50 years, the French property market being widely recognized as one of the safest in the world. The recent world crisis has shown that exotic property investments in less than safe and speculative markets can prove extremely dangerous and costly to the buyer when things start to go wrong. That’s why now, more than ever, investors are looking for properties that will offer not only a decent yield for their investment but will also prove a safe, secure medium to long-term investment. And that’s exactly what the French property market has to offer. What does “buying an off-plan property” means?
Buying an “off-plan” property means purchasing a property before it’s actually built. It generally takes 1 - 2 years from signing the contract to completion, depending on the project. One of the main advantages of buying off-plan is the flexibility that it offers (choice of layout, furniture, paintings etc), perfect for those wanting a property customized to their taste. What does “buying a new-build property” means?
Buying a “new-build” property means purchasing a property that has just been built (brand new) and is ready to move-in to. One of the main advantages of buying a new-build property is its immediate availability either for personal use or as a buy-to-let. Notaires fees are lower for new build properties compared with resale properties (2.5 to 3% compared to 6 to 8%). For the purposes of notaire fees, a new built is any property less than 5 years old.
Whether buying an “off-plan” or a “new build” property in France, you will benefit from a 10 year guarantee on the construction, stage payments, modern insulation, low maintenance costs and good capital appreciation. What does “buying a leaseback property” means?
A leaseback property is one that is bought freehold and leased back to a management company with an exclusive agreement on the development. French law is designed to encourage the development of holiday resorts made up of leaseback properties and even offers an incentive in the form of a VAT refund which is 19.6% of the purchase price for any new build. How safe is it to purchase a property through a French developer?
Buying off plan in France is safe and straightforward because it is strictly regulated. French property developers are required to have a bank guarantee in place for each residential development. Contracts are drawn up in accordance with the French building code (Code de la Construction et de l’Habitation). This legislation has very clear terms and conditions and is extremely protective of the purchaser. Why should I buy a property through Sextant new-build?
Over the last 5 years, we at Sextant have helped hundreds of people wishing to buy properties in France. We work exclusively with the French market’s most recognized and trusted developers, allowing us to offer our clients the best properties on the market at any one time. We speak everyday with these developers in France and with the 2 co-founders of Sextant being French natives, we have a full understanding of all the aspect related to a purchase of a property in France. Our service is completely free of charge for the buyer (we claim our costs from the other side) with the properties we advertise offered at exactly the same price as you would pay if you bought directly from the developer. From initial inquiries to the signature of the final contract, we guarantee to be at your side every step of the way, smoothing the process of buying a property in France.
If you need any advice regarding the purchase of an off-plan, new-build or Leaseback property in France, please feel free to contact us on 0207 428 4910 (from the UK) or +44 207 428 4910 (from outside the UK). Alternatively, please fill in this form and one of our advisors will get back to you. Find out more about the off plan buying process and French Leaseback |
