The stages of a real estate purchase

Whether you want to acquire your first main residence in France or if you are a foreigner and want to invest in real estate there, it is not always easy. You should not burn any steps, as they are all very important. So what are the stages of a real estate purchase for a foreigner as well as for a first-time buyer? We answer you.

Case 1: you are a foreigner and want to invest in France

Many foreigners dream of coming to live in France for a few weeks a year or more. Some of these people have also taken the plunge and decided to buy a property there. Are you one of them and want to know the different stages of a real estate purchase in France? Start by thinking carefully about your project.

Buying real estate: a project that must be carefully thought out

You don't start buying real estate headlong. There are several things to take into account and it is important to think carefully about all the “details”. What do you want to buy (apartment, house, villa...)? Where do you want to buy this property (Paris or province)? What are your requirements concerning it (proximity to schools, shops, transport, city, countryside...)? How do you want to finance it and, above all, how much money do you intend to devote to this project? There are a lot of questions to ask yourself. Also, it is advisable to write everything down in order to have a written record of your criteria and others. In addition, for you who are a foreigner and want to buy in France, it is important to find out about the French real estate market: prices charged, interest rates... Do not hesitate to ask residents or town halls and other associations who can answer your questions.

Research: an essential step

Once the first step in buying a property consists in defining your project, it is time for research. Nowadays, they are facilitated by the web, which is full of real estate agency sites and ads from individuals to individuals. It is necessary to read each announcement carefully and why not, again, to take notes. Also, reaching out to the seller or their representative to ask questions can be a great idea. Select properties that seem to match what you are looking for and set aside those that are not the case. Finally, contact the sellers or their representative (s) in order to set up appointments to visit the properties.

Visits: a must

There is nothing like going there to see if we like a property. Photos can sometimes be misleading or taken in such a way as to reveal only the qualities of the accommodations. It is therefore essential to visit them in order to see them with your own eyes. Do you live abroad and coming to France to visit France is complicated for you? If you have friends who live in France, why not ask them to do it for you? Otherwise, you can also trust the professional who is the real estate hunter. As explained in the last part of this article, this solution offers various advantages. After the visits comes the stage of administrative and other procedures to be carried out.

The various steps to be carried out For a real estate purchase

When you have found a property that you like and want to buy it, various steps follow:

1. make an offer to purchase;
2. find a notary;
3. sign the preliminary contract;
4. find the best financing;
5. apply for a loan;
6. accept the loan offer;
7. sign the bill of sale.

Once these multiple procedures have been completed and the bill of sale signed, you can finally settle in your home. When you are not a real estate and financial professional, these procedures can be complex. It is important to be well informed about the law, among other things, to be sure to respect it.

Buying in France when you are a non-resident: information

If you are a foreigner and want to invest in France, know that your nationality as well as your matrimonial regime will be checked. In addition, you should know that in the real estate sector, it is the law of the place where the property is located that applies. So here we are talking about French law. Also worth noting: “members of the European Union, as well as nationals of foreign countries that have signed a special agreement with France, benefit from special regimes.” Buying real estate in France requires transfers of funds. The latter can also be very important. They are therefore subject to verification by banks and other credit institutions. In addition, notaries are required to “verify the source of funds to prevent money laundering operations”. It is also possible that they will be called upon to make statements if they have a real doubt about the origin of the funds used. In addition, they must “ensure the security of the transactions for which they are responsible vis-à-vis the foreign purchaser and the seller”. It is also the notary who can explain to you which tax regime will be applicable for the property you want to buy in France (cost, taxes, taxes...).

Case 2: you are a first-time buyer and want to invest in France

Many people want to take advantage of the currently very low interest rates to buy a home. First-time buyers are among them. Who are they? What steps should they take? Is there support for this category of the population?

Definition of the term first-time buyer

A first-time buyer is any person or household who has not owned their main residence in the past two years. For a household, each borrower must respect these conditions. If one of the two persons forming the couple cannot prove that they meet these conditions, the household will not be considered first-time buyers. A first-time buyer can already own and own a second home (occupied less than eight months per year). He may also have rental investments. Can we become first-time buyers again? Yes, this is entirely possible (professional transfer, divorce, move...). After two years as a tenant or hosted for free, you regain the status of first-time buyer.

First-time purchaser, real estate purchase and procedures to be completed

What are the stages of a real estate purchase for first-time buyers when they want to invest in France? Simply the same as those listed for non-residents:

1. definition of the project;
2. research;
3. visits;
4. purchase offer;
5. hiring a notary;
6. signing of the preliminary contract;
7. seeking funding;
8. loan application;
9. acceptance of the loan offer;
10. signing of the bill of sale.

In addition, as a first-time buyer, you have the possibility of benefiting from certain financial assistance that can be very valuable for the success of your real estate purchase project.

Help available for a first real estate purchase

Are you a first-time buyer and want to buy an apartment or a house that will therefore become your main residence? Be aware that various aids exist.

The social accession loan (PAS)

Created for modest households wishing to invest in real estate for the first time, the PAS is granted in case of:

1. the purchase of new or old housing, with or without rehabilitation work;
2. the construction of a home;
3. housing improvement works worth a minimum of 4,000 euros.

The incomes taken into account are those of the penultimate year. This loan can finance the entire purchase, does not require a personal contribution and can be repaid over a period of 5 to 35 years. In addition, limits have been set for borrowing rates.

The zero interest loan (PTZ)

The PTZ is an aid mainly intended for first-time buyers and which provides for the assumption of interests by the State. The property in question is preferably new, but it may also not be new. With the PTZ, there are no administrative fees or interests. But be careful, this loan only allows you to finance part of the purchase, so it must be completed by a main real estate loan and possibly a personal contribution. It is “granted by banks that have signed an agreement with the State and the management company of the system” .Obtaining the PTZ, its amount, but also its reimbursement conditions depend on:

1. the total amount of the transaction;
2. the tension of the area where the property to be purchased is located (A, A, BIS, B...) . );
3. the number of people in the household;
4. household resources.

The housing action loan (PAL)

Sometimes also called a “1% housing loan”, the PAL is intended for employees of companies in the private sector employing 10 or more people and members of the CIL (Interprofessional Housing Committee). This device can be a valuable aid for first-time buyers. It is therefore useful to find out if your business meets the criteria mentioned above. For this, you can request information from the human resources department. The amount of the PAL is between 7,000 and 25,000 euros and must be reimbursed within a maximum of 20 years. In addition, it should not represent more than 30% of the overall purchase cost.

Other types of aid

There are other types of assistance such as the PSLA (social loan rental accession) which is aimed at modest households or the PEL (housing savings loan). This makes it possible to build up savings locked in for four years, at the end of which a loan at a preferential rate (3.20% since the 1st^Er January 2015) may be granted. Regional, departmental and even communal aid can also be considered. Various cities have thus set up systems to help you buy real estate for the first time. For example, Marseille offers its First Housing Check, while Bordeaux has created the First Housing Pass. Do not hesitate to ask your town hall, the community of municipalities or even the regional council. You can also call on a property hunter who is aware of the assistance available and who can advise and guide you. Moreover, the intervention of this professional offers many advantages.

Foreigners and first-time buyers: why call on a real estate hunter?

This is a question that you should ask yourself, because asking this real estate professional to manage the search for your property is synonymous with numerous advantages. To find housing, you should not skip any step, from thinking about what you want to visits to looking for a notary. But these various steps can be complicated, especially for foreigners, and very time-consuming. That's when the intervention of an apartment hunter comes in handy. This real estate professional knows the French market perfectly, but also the laws that govern the real estate sector or the various financing solutions that exist. So the real estate hunter manages everything for you after signing a simple or exclusive mandate. He takes care of:

1. research;
2. pre-visits;
3. making appointments with sellers or their representatives;
4. the offer to purchase;
5. the hiring of the notary;
6. the signing of the preliminary contract;
7. of the signing of the bill of sale.

He also assists you in finding financing as well as in applying for a loan and accepting the loan offer. In addition, he can offer you support even after finding you a property. Are you looking for a mover, a tiler or a plasterer? Thanks to his developed professional network, he can advise you on various artisans and put you in touch with them.Finally, hiring a real estate hunter allows you to save time, but also money. And you only pay him for success, another good point. Do you have questions about your real estate purchase project? Do not hesitate to contact us.