Why limit yourself in the project of building your house for lack of money? Take advantage of the financial aid that will help you complete your real estate project in the best conditions and make your life’s dream come true with a house that totally meets your expectations!
Are you planning to build and have you already chosen your property from among the house models of the best builders? Now take a look at loans at very advantageous rates. They are sometimes subject to certain conditions and you must find out if you are entitled to them.
The PTZ or Zero Rate Loan
This is one of the best loans to complete your budget envelope to build your property. It is a state loan that is reserved for first-time buyers. It cannot constitute the whole of your mortgage, but it can cover the acquisition of the land or part of the construction of your new property. It cannot exceed 40% of the total amount of the cost of your construction project. The first-time buyer is the one who buys a property for the first time, but this is also the case if you have not owned your main residence during the two years before the loan application. So if you have been a tenant of your main residence for more than two years, you are again considered a first-time buyer.
The PTZ is allocated according to the constitution of your family, according to the zone in which the house is built, and the threshold of resources of the household. If you meet the PTZ allocation conditions, it is a particularly interesting solution to finance part of your construction or to complete bank financing, because it can be combined with another loan. This is an opportunity to project yourself into a larger construction or to choose more expensive materials.
It came to replace the old 1% housing loan which disappeared. You can benefit from this loan if you are an employee in a company which has at least ten employees and which is not agricultural. The private company then contributes for the « construction effort » and this gives you the possibility of take advantage of a loan at a subsidized rate. For this, you are a first-time buyer and you want to build to establish your main residence. Your construction must comply with the requirements of the RT 2012 standard. If your file is accepted, you will have access to a loan at the rate of 1% for a maximum period of 20 years and which cannot exceed 30% of the total cost of your real estate project.
Read also: Real estate credit: rates continue to fall
CEL and PEL (Home Savings Account and Home Savings Plan)
These contracts are taken out with your bank and represent a medium-term investment. Depending on the duration of the investment, your bank will offer you loans to help you build your main home. The rates are more interesting and regulated. Moreover, by asking a loan using your PEL or CEL, you can claim a bonus paid by the State. But given today’s really low loan rates, it makes little sense to use this strategy at this time. Ask your banker to make you several proposals, changing the data to select the most interesting for you.
What are the other aids for the construction of your residence?
Apart from aid related to loans, you also have the possibility of applying for aid from organizations to help you build up your financial contribution.
It is possible to be exempt from property tax on your principal residence for two years following construction. You must apply to the Center des Finances Publiques and respect a maximum period of 3 months after the end of the work. The mayor must agree with this request for exemption from your property tax.
The Energy Transition Tax Credit (CITE)
If you are building a new building, you can benefit from substantial savings depending on the materials chosen or the equipment you install. The Energy Transition Tax Credit replaces the old tax credits. It is governed by the RT 2012 standard and allows you to deduct income tax from the sums spent on the construction of your house. You can ask for 30% of your expenses to be taken into account if they are intended to help with the energy transition. We think in particular of a insulation with sustainable materials or even the choice of a high-performance heater. To assert this right to the tax credit, your installations must be carried out by a professional craftsman who has the RGE title (Recognized Guarantor of the Environment).
It is possible to apply for aid to build your house with your regional council, local authorities such as your community of communes or with the departmental council. They will help you with loans at reduced rates or even PTZ. You can also claim subsidies if you opt for a type of materialto save energy. This aid is, of course, subject to specific conditions.
If you choose to carry out certain works two years after the end of the construction, you can benefit from a better rate of VAT. The normal rate is 20% if you make improvements in the continuity of the construction. But by waiting two years, you will get a 10% VAT rate on purchased materials and labor. Some works even offer a 5.5% VAT rate.
If you wish to obtain more information on the assistance which can be granted to you, make an appointment with your bank adviser and ask for information from the local authorities. Get closer to the National Agency or the Departmental Agency for Information on Housing. Regarding the materials and types of equipment for the energy transition, the French Environment and Energy Management Agency will answer you more precisely.
Read also: Works financing: information and advice