Types of French Property

In France, buyers usually choose between traditional freehold ownership and leaseback arrangements. A leaseback property is generally part of a larger managed residence, where the buyer agrees to lease the apartment back to an operator for a minimum of nine years. These can prove difficult to resell so we generally advise buyers to seek a ‘freehold’ property without a restrictive lease.

‘Classic’ freehold apartments and chalets offer much more flexibility for their owners. Many can be used as private second homes meaning that you are able to just keep the property for your own (and friends and family) use.

If you are happy to rent out the property you can still reclaim the 20% VAT by instructing a professional rental management company. There is however no obligation to do so.

Some resorts in the French Alps are now insisting on a rental obligation with new build residences. Always check with your estate agent what the latest laws and regulations are.

Purchasing a new-build property in France offers several advantages over older properties:

1. Lower Upfront Costs

   New build property typically incurs only 2-3% in notary fees compared to 7-8% for older homes. Additionally, you may benefit from property tax exemptions for up to two years.

2. Warranties & Legal Protections

   French law provides robust protection for new-build buyers, including a 10-year structural guarantee, a one-year snagging period, and a two-year guarantee for non-structural elements. These safeguards reduce risk compared to older properties.

3. Energy Efficiency

   New constructions must adhere to strict environmental standards, leading to lower utility bills and improved insulation.

4. Tax Incentives

   New apartments and chalets allow for 20% VAT reclaim as well as property tax exemptions.

5. Customisation

   Buying off-plan often allows you to select final finishes (flooring, tiles, kitchens etc) to your very own specification. It is often also possible to work with the architect to modify the interior layout to your very own requirements.

6. Resale Potential:

   Newer properties are appealing to buyers seeking modern amenities and energy efficiency.

Deciding between ski-in/ski-out or village-centre properties depends on your priorities. Some properties are “village centre + ski-in/ski-out” if the base village is built into the slope or the resort design allows both. Here are some things to think about for each:

Ski-in/Ski-out:

• Convenience: Direct access to slopes; ideal for ski enthusiasts wanting maximum time on the mountain.
• Lifestyle: Quieter with fewer nearby amenities, such as shops and restaurants.
• Rentals: Desirable for holiday renting, especially during peak seasons, commanding premium rates.
• Resale Value: Location is key for long-term value.
• Apres ski: is there a noisy bar nearby?

Village Centre:

• Convenience: May have less direct acces to the piste and require a short walk or shuttle bus.
• Lifestyle: Are there more dining and entertainment options nearby?
• Cost: Village centre property might be more affordable if it is further from the piste.
• Rental Potential: Is the village centre more convenient for summer tourism? If so, it might be worth investing slightly further from the piste.
• Resale Value: How unique is your apartment? Is there anything due to be built nearby?

Yes, you can buy off-plan property in France through a process called VEFA (Vente en l’État Futur d’Achèvement), which involves purchasing a property that is not yet built.

Yes, you can buy off-plan property in France through a process called VEFA (Vente en l’État Futur d’Achèvement), which involves purchasing a property that is not yet built.