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 main residence is often the prelude to the constitution of real estate assets, there are more and more candidates for rental real estate investment. However, making a real estate purchase is not a trivial act. Here are the different cost items that future first-time buyers should expect. Having them in mind helps to avoid unpleasant surprises.
How to assess notary fees?
Impossible to escape the notary fees when making 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 purchase amount. Regardless of the notary in charge of drafting the notarial deed, these costs depend solely on the investment made and the geographical location, where the property is located (notary fees are more expensive in large French cities) . You should know that in reality these costs do not fully fall within the portfolio of the notarial office. In fact, around 80% represent transfer costs which enter the State revenue in the form of taxes.
The notary fees attributable to real estate transactions in new buildings are lower. In the case of a VEFA purchase (Sale in the Future State of Completion), real estate developers in charge of construction often offer total exemption. If this is not the case, they amount to a maximum of 4% of the real estate investment made. This evaluation is also valid for the construction of an individual house (via a builder or an architect).
Conversely, the notary fees are on average higher when it comes to an acquisition in the old. The notary fees then represent 8% of the investment on average. It is therefore necessary to count twice, which encourages more and more first-time buyers to focus on new projects. Especially since the purchase in new gives easier access to the advantages of the PTZ (Zero Rate Loan) .
Real estate investment and intermediation costs
When we engage in a real estate purchase project, we often need to call on the services of experts. These intermediaries will thus be essential for the successful completion of the project. First of all, the real estate can be sold through a real estate agency. Nowadays, real estate sales are rare. These costs are within a range of 3 to 10% of the amount of the real estate investment. They are generally decreasing according to the sale price.
In addition, most real estate investors have to seek bank financing for the purchase of real estate . The establishment of a real estate loan generates additional costs to the operation. These bank charges are of several types. In general, they are made up of administration fees and guarantee costs (mortgage or commission to surety organizations). From now on, financing organizations also levy fees from borrowers in order to remunerate a verification organization following a real estate construction. The bank then wishes to ensure that the building construction complies with the initial project.
To benefit from the most favorable possible loan conditions, it may be useful to request the services of a mortgage broker . Thanks to its banking partnerships, its mission is to find the best financing solution on the mortgage market. He is then remunerated by brokerage fees. These depend on the price of the real estate investment. They can be the subject of commercial negotiation.
Purchase in the old, pay attention to the work charges
For those who are turning to a real estate investment in the old, it is advisable to plan a work budget. For this, nothing better than to call on building professionals to establish costed quotes 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 carried out. However, to buy in the old one is to take the risk of facing unforeseen restoration expenses. If some real estate does not seem to need to incur improvement costs, it is still preferable to set aside a budget reserved for the "refurbishment" of new owners.
Investing in real estate is therefore not a project to be taken lightly. Stone is a low volatility investment, therefore low risk. Nevertheless, the financial investment to be made is heavy. On the one hand, because for each expense item, we are talking about thousands of us dollars. On the other hand, the additional costs are numerous. They must be listed and evaluated before committing to signing a purchase agreement. In order to avoid a cash flow problem, the repurchase of loans can be the appropriate solution upstream of a real estate project.