Buying new-build properties in Languedoc - the Pros & Cons
Brand new homes bought off-plan and built on developments in Languedoc have many pros, as any agent selling them will happily tell you. But what are the cons? We’ve drawn up a list of benefits and drawbacks that you need to be aware of, before you sign on the dotted line.
NEW BUILD PROS…
No stamp duty to pay, so only approximately three per cent notaire’s fees (compared to the usual seven or eight per cent notaire’s fees payable on a resale purchase)
Only five per cent deposit to pay on signing reservation contract (this amount can vary depending on the developer and property in question, but five per cent deposit for an off-plan home is the norm, compared to the ten per cent deposit usually required for a resale purchase)
Staged payments over the period of costruction (so you don’t have to hand over the total purchase price in one go)
Ten year guarantee on construction (say goodbye to DIY for ten years, at least)
Developer is backed by bank guarantee (so even if they go bust or disappear off the face of the earth, the development will still go ahead)
Low maintenance (it’s brand new, so there shouldn’t be much to do)
Easy to resell on the French market (the French love new construction)
Leaseback available on some projects (so you benefit from a 19.6 per cent refund of the VAT usually payable on a property purchase)
Communal facilities make new build homes easy to rent out
Good investment potential (practically all new build homes will increase in value)
Social aspect and security of living on a development (you’ll have instant neighbours)
Buying through leaseback means no management fee for letting, no concerns about maintenance or rental arrangements, and guaranteed income (read the small print for details of personal usage)
… AND CONS
Purchase is made off-plan – you cannot see what you are buying, so you have to make a leap of faith and have a good imagination!
Property will not be ready to you to use for some 12-18 months (unlike a resale home which you can normally take possession of within around three months of signing the initial sales contract)
Some developments are sold as leaseback-only, which has certain constraints and is not right for everyone (read our feature on How New Build Can Save You Money for details of how leaseback schemes work)
If you want to spend a lot of time at your French home, leaseback will not be suitable for you, as you are only allowed a set number of weeks occupancy at designated times of the year
Developments are not best suited for those who want to live in isolation (if you really want to be in the back of beyond but enjoy the benefits of new build, you’d better buy your own plot in a quiet spot and build your own home)
By their very nature, a new build development starts out as a building site. If it is a large site then parts may be built in phases; if you buy into an early phase, you may be living alongside a building site for a number of years as the subsequent phases are completed.
New build projects can look a little raw in the early days (months, years…). Check what plans there are for the “greening” and landscaping of communal spaces. Remember that trees and shrubs take a while to grow!
On some developments, landscaping of individual garden spaces is an optional extra; do you have enough cash to make your garden pretty? Will you mind if your neighbours opt to leave their garden as a scrubby patch bounded by cheap green wire netting?
