What Is a New Home

What Is a New Home

by admin agoNew Housing, Apartment, Houses, Real Estate, Selling
What Is a New Home

Summary

 – Definition of a new home

 – Different types of new housing

 – Advantages of new housing

 – Disadvantages of new housing

Typically, new housing is a housing (house or apartment) sold within the framework of a sale in the future state of completion (or sale on plan). 

Definition

The new housing is defined as housing in the course of construction or to be built, generally, by a developer. The law establishes new buildings as “buildings that have not been completed for more than five years”. However, the law specifies that a dwelling sold for the first time by an individual within the first 5 years of its completion is no longer considered a new dwelling. Thus, the sale will be subject to registration fees, purchasing old property, and not to VAT.

A property is considered new during the first 5 years following its construction. Beyond this period, the property is deemed to be old. It can be the result of a new construction or specific work.

Different types of new housing

New Home

A new home can be a house that has just been completed (individual or in a subdivision) or an apartment in a collective building (condominium).

A new home can result from new construction or significant work (structural work) on a building.

Advantages of new housing

Buying at a lower cost

The purchaser of a new home pays fewer “notary” fees. Indeed, the seller (developer) is subject to VAT, and thus, the buyer is only liable for the land registration tax and the notary’s fees, not the registration fees. The costs are therefore lower than in the case of the purchase of an old house.

In addition, the purchasers of new housing benefit from assisted loans set up by the state. Example: The zero rate loan.

The quality of new housing

Construction must meet increasingly strict standards. Thus, new housing must meet thermal standards and have an eco-label in terms of energy performance. These standards result in energy savings (heating and hot water) and a reduction in the cost of utilities.

Finally, when buying off-plan, buyers have the advantage of being able to customize their future homes.

The guarantees

The buyer of a new home benefits from guarantees in case of possible defects: damage to work guarantee (10 years), two-year guarantee for equipment elements, one-year warranty for sound insulation, etc.

Disadvantages of new housing

The main disadvantage is that it takes patience when a buyer buys off-plan. In addition, the purchase price is, in principle, higher than that of an old house.

Hope this post has been informative to you. Please remember to share your opinion in the comments below.

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