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DO!
DO: make a checklist before you start viewing developments. If you know what you want, you need your criteria written down in black and white so you can tick them off as you go along. If you don’t really know what you want… what are you doing viewing property developments already? Go back to the drawing board and establish what your “must-haves” are, to avoid wasting your time (and come to that, the agent’s, too).
DO: shop around. The first development you see may end up being the one in which you buy, but check out as many as you can before making up your mind. Developers and agents will often tell you how fast new build projects sell out, but frankly, there will always be another one coming up. When it comes to property (new, or resale), an informed decision is always better than an impulse buy.
DO: be firm. Some unscrupulous agents will put pressure on you to make a decision at the end of a viewing trip. If you haven’t made up your mind, just say “no” and walk away.
DO: check the developer’s track record. Can you visit some of their other, completed projects in the same area, to get a feel for the quality of the design and build?
DO: carry out your own research. Then you can ask pertinent questions, like this: “I was looking at the Notaires de France website, where they quote the average selling price of new build apartments for each département. The purchase price for this development we’re viewing here seems very steep by comparison – how come?”
DO: talk to the locals. Ask local letting agents (without a vested interest in the development in question, naturally!) about the type of units that rent out most easily, if this is what you hope to do with your Languedoc home. Be wary of purchasing in large blocks of apartments exclusively sold to investors, which, if they all complete together, will suddenly flood the market.
DO: ask about the VAT rebate and how it will be handled, if you’re buying a new build home on leaseback. Depending on the developer, the VAT concession of 19.6 per cent to which you are entitled is either deducted from the price of the property from the start, or, once the property has been paid for in full (i.e. on delivery, some 12-18 months later), you apply for the VAT to be reimbursed to you. I know which option I’d prefer…
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DON’T!
DON’T: forget that the purchase price is only part of the story. As well as the sales price, you need to budget for the notaire’s fee, plus travel and accommodation if want to visit the site before or during the build and on delivery. Besides the one-time buying costs, there will be on-going expenses – like management fees, co-ownership charges and local taxes (taxe d’habitation, if you live in the property yourself, and taxe foncière – payable by owners of French property), plus life assurance if you’re taking out a mortgage. Draw up the full picture, money-wise, so you know what you’re letting yourself in for.
DON’T: be afraid to ask questions, and push for a straight answer. I once went on a new build viewing trip. The site was in an area I knew well. “What’s that big white building over there?” asked a potential buyer. “That’s an agricultural building, I think,” said the developer. It was actually an abattoir. Whether he really knew and decided not to tell the full truth is anyone’s guess…
DON’T: get carried away. Even if you’re sure you’ve found your dream development, keep a cool head. This could be one of the biggest decisions you’ve ever made, and you know what they say about fools who rush in…
DON’T: blow your budget. You should have a very clear idea about how much you can comfortably afford to spend. Don’t be tempted out of the comfort zone, no matter how attractive the more expensive option may be.
DON’T: let your emotions cloud your judgement if you are buying purely for investment purposes. Unless you plan to use your Languedoc new build property yourself, choose an area and type of property that will give you strong capital appreciation. Just because you fancy living somewhere yourself doesn’t mean it’s a good investment (and vice versa).
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