You want to invest and you are interested in buying a new property? We will explain to you how to identify projects that may interest you, what are the steps and advantages of this type of acquisition.
1.Types of offers for new buildings
There are two types of offers on the new home market:
- SFSC (Sale in Future State of Completion) : It is about investing in a project on plan, i.e. in a project whose building site did not start yet or hardly begins. In this type of investment the delivery is generally programmed in the 12 to 36 months following the purchase.
- Direct purchase (construction in progress) :
This is the purchase of a property that is beingfinished and will therefore be delivered within a maximum of 6 months. In this case, the buyer signs a final sales contract and will be able to enjoy his property within a short period of time.
2.Identify the right project
To make the right choice, you must first ask yourself the purpose of the purchase:
Are you looking for a property that you are planning to buy or are you looking for an interesting rental yield?
In the case of a purchase for yourself, you shouldtarget projects that are located in your preferred neighbourhoodsand whose nature you like: villa or apartment, architectural design, layout, accessibility…
If it is a rental investment, it is the yield that will take precedence in the choice of the project. Indeed, it will be necessary to analyze the balance between the cost of the purchase and the potential rental income.
3.The buying process
For a SFSC purchase, here are the key steps you should consider:
- The subscription. Most real estate programs ask you to fill out an application form in which you confirm your interestby choosing the specific property you wish to purchase. This step is also accompanied by the payment of non-refundable application fees.
- The reservation contract. Once you have made your choice and confirmed your desire to buy, the developer will send you the contract in which you will find all the information on the development, the schedule of works and all the conditions governing the SFSC acquisition process. The signature of this contract commits you to the purchase process and is generally accompanied by a first deposit.
- The work and payment schedule.The work schedule (described in the reservation contract) is spread over the entire construction period planned for theproject (generally between 12 and 36 months) At each stage of the work, a call for funds will be submitted to you, the amount of which is known in advance as it is included in the contract.
- The delivery of the property. You will be able to take delivery of the property by carrying out an inventory of fixtures with the developer in order to check that the construction complies with the specifications and to point out any defects to be corrected before the final signature of the sale. After validation, you will have to settle your purchase and sign the final deed of sale before the notary.
In the case of a direct purchase, the property being practically finished, the conditions of sale are generally the same as for a classic purchase. Indeed, once having determined his choice, the customer will sign directly a final deed of sale at the notary and will have to pay the totality of the selling price.
4.Why invest in new buildings?
- The main reason that attracts investors to new housing is that it meets the latest standards in terms of construction, both technically and architecturally (design, equipment, home automation, etc.).
- New homes have the advantage of not requiring any additional investment in work or renovation and are therefore immediately habitable.
- The properties on offer generally have a better price/quality ratio.
- Within the framework of the SFSC, the flexibility of the payment schedule, spread out over several years, makes it possible to certain investors to be able to launch out in a purchase without having recourse to the banking credit.
- For the most modest budgets, it is difficult to find proposals inthe traditional real estate market. The economies of scale enjoyed by developers allow them to offer competitive sales prices.
MAM Conseil will help you choose your new property investment thanks to a varied offer of quality real estate projects (villas, apartments, bare plots of land in subdivisions…). Contact us to discover all our investment proposals in new projects.