20 tips for the success of your main home purchase project
Do you want to embark on a new real estate project, that of buying your main residence? Of course, for this type of initiative, the repercussions on your comfort of life, your finances and your assets are such that nothing should be left to chance. In order to devote yourself calmly to this project, HOME SELECT offers you comprehensive support, from the first reflections to the handing over of the keys, naturally going through the strategic phase of research. To begin with and to help you plan, we have put together a list of 20 essential recommendations to know for this acquisition, which will mark a transition to a new life!
1. Identifying the right time
All sociological statistics prove it: French people are buying their main residence more and more later. In the 1960s, it was not uncommon to have already formed a family around the age of 25 and, by that time, the couple had generally passed the stage of buying real estate, they owned their main residence.
Now, people are more likely to remain a tenant, in particular because it takes longer to stabilize, both in the context of professional life and in that of family life. Concretely, according to INSEE, during the first years of his working life, an employee will have to change jobs 4.5 times.
With regard to personal life, the extension of studies is one of the factors that postpone the purchase of a main residence, as is the birth of the first child (it happened around 24 years old for a woman who graduated in 1960, compared to nearly 30 years old today).
If you think that you are going to experience major changes that will probably encourage you to move, we can only recommend that you wait some more time before becoming the owner of your main residence... Because this type of project comes about more comfortably when you can plan for the long term!
At HOME SELECT, we can help you better assess your situation and your interest in buying. Perfectly mastering the concepts of wealth management, we advise you on the best investments to make in your particular case. If you think that you are not yet “fixed” geographically and still want to buy, we can guide you in a rental investment project, for example.
2. Make sure to occupy the property for a minimum number of years
On average, the duration of ownership of a first property purchased as a main residence does not exceed 6 years. However, you should know that on average, the duration of a mortgage will often flirt with 25 years (or even exceed them). In addition, during the first 8 years, you only repay the loan interest, you only receive the capital at the end of this first period.
To summarize, before becoming the owner of your primary residence, you need to make sure that you can stay in the same home for at least 10 years, if not longer. To do this, the points mentioned above deserve to be avoided: is your professional life likely to require you to move in the medium term? Will the assets you are targeting allow you to cope with the arrival of one or more children if you intend to start a family in 5 or 10 years?
At HOME SELECT, we help you plan effectively to assess the feasibility of your real estate project. We can answer all your questions about how long it will take to repay a loan, when you will start to receive capital, how many years it will be necessary to occupy the property at least to make the operation profitable, etc. Our experts are used to solving all sorts of problems, including the most specific ones.
3. Know your current needs... and know how to plan!
It is not enough to clearly list your current requirements for buying your main home. While this first step remains essential, it needs to be completed by a projection of your needs in 5, 10, 15, 20 years and even beyond.
For a young couple, it will be a question of knowing, for example, how many rooms are required, depending on the baby plans that are present in your mind. For older profiles, who want a house in which they will live after retirement, it is becoming important to anticipate possible mobility difficulties, to prefer single-storey homes or apartments accessible via an elevator.
At HOME SELECT, we are used to drawing up the specifications of each buyer from the start of our exchanges. This allows us to clearly identify the needs, and to refine our search criteria as much as possible. If necessary, we help the purchaser to imagine himself more easily in his future home and to project himself, so that he can more easily succeed in identifying all his potential needs.
4. Start to anticipate resale
Of course, when you buy, you think above all about the decades you will spend in your future house or apartment. This is one of the main challenges, but not the only one. Indeed, do not forget that you will necessarily have to resell one day, perhaps even sooner than expected (professional transfer, separation, new projects that are incompatible with housing, etc.).
In any case, when you buy, you must take into account what this property will bring in concrete terms, the way in which it will value your assets. Ideally, you should be able to make an increase in value on resale, so that the operation is really profitable for you. To do this, it is necessary to select a property with good benefits, if possible placed in a neighborhood with high potential.
At HOME SELECT, we are above all real estate professionals. We know perfectly the geographical sectors in which we work, and we know which homes can facilitate the obtaining of added value, which allows us to guide our customers in the best possible way.
5. List all the services you want
Before you even start looking at real estate ads, you need to know exactly what you want, but also what you don't want. Take the time to list the essential requirement criteria for you, the minimum surface area desired, the essential services (an elevator for an apartment, a private parking, a cellar to store, etc.).
It's not enough to think about what you need right now; again, you need to look forward to several years. Remember, too, that the items you are currently interested in are likely to help you resell more easily and make a profit in a few years.
At HOME SELECT, we take the time to draw up extremely precise specifications with each buyer. We use it in all our research, to offer only properties that perfectly match the customer's requirements.
6. Reflect on opportunities for improvement
It may be interesting to buy a house or an apartment cheaply, in order to then start improvement work. These will not only make you feel better in your own home, but also allow you to sell more quickly and more expensive in the long run.
If you feel motivated enough to start working after the purchase, start from the reflection phase and during the visits to imagine what will be possible in terms of rehabilitation/redevelopment. When buying, you need to have a clear idea of the work that is going to be done.
At HOME SELECT, we often refer buyers who want to do work on their property. Our property search experts are used to anticipate renovations as soon as they are visited, and can guide their customers. They are also in a position to support everyone in managing the site, and even to present companies to facilitate the organization of the rehabilitation.
7. Buying alone or in pairs: asking the right questions
If you are in a relationship, you need to think carefully about what buying real estate together involves. For example, if you are married under common law, you should know that the property will belong to both of you (unless one of you buys with your funds). If you are married under the separation of property regime, then you will own the property according to your personal pro rata. Finally, civil partnerships also fall under the regime of separation of property.
Unmarried couples should take precautions to ensure that everything is anticipated, in the event of separation or death, as the law does not cover them (it may be appropriate, in this case, to create a SCI, civil real estate company).
At HOME SELECT, we fully understand the ins and outs of buying as a couple. Knowing all the laws and regulations in the field, we advise each couple according to their wishes and problems. We can help you choose the best options for your situation.
8. Negotiate a bridge loan for the purchase of a second main residence
You already own your main residence, and you plan to sell it to buy a new one. In this case, we advise you to read the terms offered by your bank with regard to the bridge loan. This will allow you to concretely finance your project before successfully selling your current property.
This bridge loan offers you additional comfort, since it allows you to have a deadline to complete your sale, even if you have already found your new house or your new apartment. Attention: this loan cannot generally cover more than 60 to 70% of the cost price and the term does not exceed a maximum of one or two years.
At HOME SELECT, we know how stressful it can be to buy when you haven't sold your primary home yet. We can advise buyers in all the steps to obtain this extremely useful bridge loan. We support our customers throughout their project so that they can live it more peacefully.
9. Learn about support systems for first-time buyers
Are you currently a tenant and do you want to own a property for the first time? In this case, keep in mind that several financial aids can considerably simplify the realization of your project.
For example, you can finance part of your project with a zero interest loan, with a bank approved by the State, knowing that this device (like most others in the field) is subject to income conditions. Other aids such as the PAS (social accession loan) or the “Action Logement” loan allow you to become a homeowner even when you have modest resources.
At HOME SELECT, we can help you know your rights for an optimized purchasing project that is affordable for you, and that will not eat away at your purchasing power.
10. Calculate your borrowing capacity
You need to know your borrowing capacity to know what budget you can plan for when you make the first visits. There are simulators on the Internet that can give you an idea of what is possible and what is not.
In general, be aware that banks want to avoid your debt ratio exceeding 33%. In other words, the amount of monthly loan payments should ideally not go beyond a third of your total income.
At HOME SELECT, we are in a position to help you better understand your borrowing capacity, and even advise you on the ideal term for your credit, according to your goals. If necessary, we can recommend that you use the services of a broker in order to facilitate the obtaining of your loan.
11. Avoid confusing speed and haste
Since you have decided to start buying your main home, you are logically feeling enthusiastic... And certainly also a hint of impatience! This is completely natural, but it's important to understand that you absolutely need to take your time.
For example, do not neglect the entire study phase to establish your budget, choose your geographical location and draw up your specifications. You should also take the time to see several properties to get an idea of the market and avoid missing out on opportunities that are really interesting for you. Then, do not forget that there are incompressible deadlines for signing a sales agreement, obtaining a loan or even the last appointment at the notary for the authentic instrument and the delivery of the keys.
At HOME SELECT, we are frequently required to work for people in a problem situation, who need to find a property urgently. We have all the necessary skills to be responsive, without ever compromising the quality of the property that will be finally chosen and without ever taking risks for our client.
12. Regularly consult the latest news in the field of real estate
If you are buying your main home for the first time, you should definitely take the time to learn about the real estate market before you start. In concrete terms, this market is constantly evolving, with fluctuations that directly involve prices, not to mention that new regulations can in some cases change the situation.
You must do this monitoring work in order to buy with full knowledge of the facts. Throughout your research efforts, never forget to update your luggage from time to time, because in just a few months, changes can occur.
At HOME SELECT, the day before is part of our daily activities. Our ability to inform ourselves of all developments in real time naturally serves our customers: they no longer need to carry out the information work that we do for them.
13. Ask as many questions as possible during visits
You should absolutely leave nothing to chance when you start the viewing phase for the purchase of your main residence. Remember that you always buy real estate in the state, which means that once the bill of sale is signed, you can theoretically no longer turn against the former owner, except for hidden defects.
So even if you feel the crush, do not hesitate to make several visits together, so that no detail likely to change the situation goes unnoticed. You can also call on other professionals: for example, if you intend to carry out work, it may be interesting to organize a visit with an architect. The latter will do a kind of feasibility study that is very useful.
At HOME SELECT, research is our specialty. We are used to making numerous visits on a daily basis, and nothing escapes our professional and keen eye. If you entrust the visits to us, you ensure that we will ask all the essential questions and that we will not forget any details that may have an influence on your final choice (or your comfort of life in general).
14. Negotiate as much as possible and reasonable
Negotiation, in the field of a real estate purchase, is not always possible. Thus, you must have taken the time to find out about the local market, in order to know if you can try to ask for a 10% or 15% reduction, for example.
In concrete terms, in cities like Paris where the market is very tight, it is quite rare to be able to ask for a small discount. However, in some specific cases, it is possible to obtain the property for a slightly lower rate (by 5%, for example).
You should not risk too much negotiation when other people will make an offer without asking for a price reduction. You should try only when reasonable, to avoid getting in the way.
At HOME SELECT, our perfect knowledge of the market allows us to know when negotiation is possible, and when it is not. We do our best to preserve the interests of our customers. We negotiate for them if (and only if) we think it's possible to save, and we advise them to make an offer at the retail price when we think it would be too dangerous to try anything else.
15. Seek the advice of a broker for real estate loans
You have found the property you dream of, are you about to make your purchase offer and you will soon have to apply for a mortgage? Do not hesitate to be accompanied by a loan broker, to make sure you get the contract with the most advantageous rate possible.
Remember that the intervention of a broker also allows you to create a complete file more quickly and easily, which will simplify its processing within banking institutions. They are always better able to accept requests when they get all the administrative documents they need right from the first time they are sent!
At HOME SELECT, we work our network every day to ensure that it benefits you as much as possible. If necessary, we can put you in contact with broker partners and give you access to personalized support, also in the field of real estate credit.
16. Anticipate any additional costs
When you apply for a loan and assess all the financial aspects of your project, do not omit all the expenses that you do not spontaneously think of. Because you should know, the price of the property is not the only dimension to take into consideration.
For example, if you buy a house on the outskirts and move away from your workplace, don't forget the travel expenses that will add up each month. Also think about fixed condominium fees, heating, local taxes. All of this will weigh on your purchasing power, so you should not underestimate anything.
At HOME SELECT, we help you get a clear visibility on the financial aspect of your project as a whole. We support you in this financial projection, so that no aspect is left to chance.
17. Ensuring that buying a primary residence is the most relevant investment project
You are certain that you want to buy an apartment or a house, but is investing in a primary residence the best choice for you? Concretely, you should know that in cities like Paris, rental investments often allow you to claim returns between 2 and 2.5% per year.
In general, a loan can cost you more than a rental. If you are looking to make a profitable investment in stone and you do not yet have the assurance of spending several years in the same home, it may therefore be more interesting for you to prefer rental investment.
At HOME SELECT, we support investors both in projects to buy a main residence and in rental investments. If you do not know which alternative to choose, we are in a position to guide you by taking note of your situation, your needs and your projects.
18. Understand and know how to use the withdrawal period if necessary
Remember that once the promise to purchase is signed, you have a withdrawal period that allows you to reconsider your decision without penalty, and for which you have no reason to assert.
In this sense, during the 10 days following the promise to purchase, you can finally inform the seller that you have changed your mind and that you no longer want to own the property. It cannot turn against you, or even ask you for a concrete reason. On the other hand, this right does not apply to sellers, whether they are professionals or individuals.
At HOME SELECT, we do not forget to inform buyers of their rights, so that they can take advantage of them if necessary. We explain everything you can do and all the tools that are available to you to protect your interests, so that you can buy with total peace of mind.
19. Add suspensive clauses to the promise of sale
When writing the promise of sale, which is a contract to protect all parties, don't forget to protect yourself! It is entirely possible to include several suspensive clauses: if these are not met, it will be possible to cancel the sale.
The most common suspensive clause is the one corresponding to obtaining a loan: if you cannot get the bank's agreement, you can cancel the purchase without penalty. But you can also add a work clause, which for example requires the seller to bring the electrical system up to standard, otherwise you cancel the purchase.
At HOME SELECT, we always contribute to protecting the interests of the buyer. We can therefore guide you in the drafting of all the suspensive clauses at the time of signing the promise of sale, and advise you on which ones are the most important in view of the situation.
20. Know how to surround yourself throughout the research and purchase project
In general, for your main home purchase to go well, you have every interest in surrounding yourself. Starting alone involves exposing yourself to risks, because you don't know everything about the real estate market and you probably don't know all the regulatory subtleties.
By choosing the right partners, you protect yourself, and you approach this transition more calmly, without the fear of making mistakes that you may regret later.
At HOME SELECT, we remain your privileged interlocutor throughout your project of buying a main residence. If necessary, we use our network including brokers, but also companies for renovation work. We ensure that you enjoy your purchase peacefully, because we manage all the regulatory subtleties associated with real estate acquisition. Make the choice to go through our intermediary to meet all the conditions for a successful investment.
How do I report a change of address to the tax authorities and what are the steps to follow?
To declare a change of address to the tax authorities, you will have to follow certain procedures. First, you will have to contact the General Directorate of Public Finances (DGFIP). There are several ways to do this: online, by mail or using the remote contact services available in the current context.
To make this declaration online, simply go to the DGFIP website and follow the instructions provided. You will probably need to create a user account if you don't already have one. This process will allow you to access a specific form to declare your change of address. Be sure to provide all required information in a complete and accurate manner.
If you prefer to proceed by mail, you can send a letter to the address indicated by the DGFIP for declarations of change of address. Be sure to include all of the requested information in your letter, such as your tax identification number and new address.
Finally, given the current context, it is possible that remote contact services from the DGFIP are also available to assist you in declaring your change of address. You can contact these services by phone or email for specific instructions on what to do.
It is recommended that you make this declaration as soon as possible after your change of address, in order to avoid any future problems related to your tax situation.
How to reverse the main and secondary residence in order to sell a home?
To reverse the primary and secondary residence in order to sell a home, it is essential to follow a series of well-defined steps. First, it is necessary to determine which residence will be designated as the new primary residence and which will be considered the secondary residence.
Then, it is strongly recommended that you refer to the real estate laws and regulations in force in your country or region in order to ensure compliance with all legal procedures related to this process.
It may be necessary to notify the competent authorities, such as the tax office or municipal services, of the change in the status of primary and secondary residence. This may involve submitting supporting documentation such as rental contracts, utility bills, or tax returns.
It is strongly recommended to seek the assistance of a real estate agent or a notary to benefit from professional advice on the fiscal and legal consequences of this reversal. These professionals will be able to guide you through the necessary administrative procedures and provide you with accurate information on the financial implications of this decision.
Finally, once all the procedures and formalities have been completed, you can proceed with the sale of your home by respecting traditional sales procedures. It is crucial to note that this reversal may have specific fiscal consequences. Therefore, it is imperative to consider all of these elements before making a final decision.
What formalities do you have to complete to rent a second home?
To rent a second home, it is imperative to follow specific administrative formalities with the town hall and tax services, in order to comply with current legislation. Reporting the change in use of the primary residence into a second home is essential to obtain the necessary authorizations for the rental.
In the first instance, inform the town hall of your intention to rent your second home. Generally, this involves completing a dedicated form and providing required documentation, such as proof of ownership or rental lease. Some municipalities may also require additional information concerning the condition of the accommodation or the rental conditions.
Complying with tax regulations is just as critical. You will have to declare the income generated by renting your second home to taxes. This requires completing a specific tax return and providing all the necessary supporting documents. A thorough understanding of the applicable tax regimes is crucial, as some tax benefits may apply, but specific taxes may also be required.
What are the tax benefits associated with a primary residence?
The tax advantages associated with a primary residence are numerous and can offer significant relief. Reversing the primary and secondary residence in order to sell a home is an option, but it is crucial to emphasize that this change in status must be authentic, as the tax authorities verify various aspects of this process.
By opting for a main residence, several tax advantages can be obtained. For example, you could be exempt from Real Estate Wealth Tax (IFI) if your main residence represents most of your real estate assets. In addition, you could also benefit from an exemption from housing tax and property tax on your main residence, which could lead to substantial savings.
In the event of the sale of your main residence, an exemption from the capital gain realized may also be considered. This means that if you make a profit when selling your main residence, you may be exempt from paying tax on this capital gain.
What are the organizations to contact in the event of a change of main residence?
When changing your main residence, it is essential to contact several organizations and services to update your information. Among the organizations to be notified, it is recommended to notify the tax authorities. By informing them of your change of residence, you will be able to benefit from allowances taken into account in the calculation of housing tax. This will ensure that your change of primary residence is taken into account throughout the year.
