France: Buying Off Plan

Overview

When buying a new property in a development, you’re usually obliged to commit to a purchase before it’s completed (or even before it’s begun!) – a process known in English as buying off plan (also confusingly called ‘on plan’) and in French as une vente en état futur d’achèvement/VEFA (‘a sale in a future state of completion’). In fact, if a development is built and largely unsold, particularly a quality development in a popular area, it usually means that there’s something wrong with it!

Buying a home that hasn’t yet been built may seem a risky business, but the procedure is usually safe and there can be several advantages. Off-plan properties are generally cheaper than built homes. You can usually choose your bathroom suite, kitchen, fireplace, wallpaper, paint, wall and floor tiles, and carpet in bedrooms, all of which may be included in the price. You may also be able to alter the interior room layout, although this will increase the price, but you won’t be able to make major structural alterations or changes of material or design. Most developers will negotiate over the price or include ‘free’ extras (such as a fitted kitchen when it isn’t included in the price), particularly if a development isn’t selling well. Note that any changes or additions to a property, such as including an American kitchen, a chimney or an additional shower room, should be made during the design stage, as they will cost much more to install later. All fixtures and fittings will, of course, be brand new, and you will benefit from modern insulation, ventilation, heating and other materials and systems. And, of course, the building will have a ten-year guarantee. You will also pay a lower deposit and lower registration fees on an off-plan home, which will be exempt from property tax for two years from 1st January following the completion date.

Disadvantages of buying off plan include the fact that you must pay VAT at 19.6 per cent on building costs, although this is usually included in the price quoted to you, and you must start paying for your home long before you can actually live in it.

Note that the purchase procedure for a property yet to be built is different from that for a finished home.

© Survival Books Limited 2005

“Buying a Home in France 2006” 6th Edition, David Hampshire.

Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying a Home in France 2006” 6th edition, by David Hampshire.

For extensive, annually updated information about buying a property in France, you can purchase this book at www.survivalbooks.net