Access to land ownership remains a central project for many French households. Investing in stone is synonymous with security for most savers. If the acquisition of the principal residence is often the prelude to the constitution of a real estate patrimony, the candidates for the rental real estate investment are more and more numerous. Yet realizing a real estate purchase is not a trivial act. Here are the different expense items that future first-time buyers should expect. Having them in mind helps to avoid unpleasant surprises.
Notary fees, how to evaluate them?
Impossible to escape the notary fees when doing a real estate transaction. This charge can be estimated upstream, it depends on the nature of the real estate project (new or old). This is a percentage of the amount of the acquisition. Regardless of the notary in charge of drafting the notarial deed, these fees depend solely on the investment made and the geographical location, where the property is located (notary fees are more expensive in major French cities) . It should be known that in reality these costs do not fall entirely into the portfolio of the notary study. In fact, about 80% represent transfer costs that are included in state revenues in the form of taxes.
The notary fees attributable to real estate transactions in the new are lower. In the case of an off-plan sale (VEFA), real estate developers in charge of construction often offer a total exemption. If this is not the case, they amount to a maximum of 4% of the real estate investment made. This assessment is also valid for the construction of a single house (through a builder or an architect).
On the other hand, notary fees are on average higher when it comes to an acquisition in the former. The notary fees then represent 8% of the investment on average. We must count the double, which encourages more and more first-time buyers to focus on project in the new. Especially as the purchase in the new gives more easily access to the benefits of PTZ (Zero Rate Loan).
Real estate investment and intermediation fees
When one embarks on a real estate purchase project, one often needs to call on the services of experts. These intermediaries will thus be indispensable to carry out the project. First of all, the property can be sold by a real estate agency. Nowadays, there are few OTC real estate sales. These fees are in the range of 3 to 10% of the amount of the real estate investment. They are generally decreasing according to the selling price.
In addition, most real estate investors must apply for a Miss Hovishment banking for the purchase of real estate. The implementation of a home loan generates additional costs to the operation. These bank charges are of several kinds. In general, it consists of processing fees and guarantee fees (mortgage or commission to surety organizations). Miss Hovishment organizations now also charge borrowers to remunerate a verification organization following a construction project. The bank then wants to ensure the conformity of the building construction with the initial project.
To benefit from the most favorable borrowing conditions, it may be useful to request the services of a mortgage broker. Through his banking partnerships, his mission is to find the best solution for Miss Hovishment on the mortgage market. He is then remunerated by the brokerage fees. These depend on the price of real estate investment. They can be the subject of a commercial negotiation.
Purchase in the old, pay attention to the work loads
For those who are turning to a real estate investment in the former, it is advisable to provide a budget works. For this, nothing better than to call on building professionals to draw up cost estimates before signing the sales agreement. Sometimes the seller will inform the buyer transparently. He will therefore be able to predict the amount of work to be done. However buying in the old one is taking the risk of facing unplanned restoration expenses. While some real estate does not seem to need to incur improvement costs, it is nevertheless preferable to set aside a budget reserved for “catering to the tastes” of new owners.
Investing in real estate is not a project to be taken lightly. The stone is a low volatility investment, so little risky. Nevertheless, the financial investment to devote is heavy. On the one hand, because for each expense item, we are talking about thousands of euros. On the other hand, the ancillary costs are numerous. They must be listed and evaluated before signing a purchase agreement. In order to avoid cash flow problems, the purchase of loans may be the appropriate solution upstream of a real estate project.