Real Estate News:

Loan at zero rate of interest (PTZ)

LOAN AT ZERO RATE OF INTEREST (PTZ):

Only those persons who did not own their principal place of residence during the course of the two previous years preceding the application may  benefit from a loan at a rate of zero per cent.

The new procedures are applicable to all the PTZs granted between 15 January, 2009 and  31 December, 2009, and only to these.

1. Maximum income for entitlement to benefit from a PTZ

2. Amount of loan at a rate of zero per cent

The maximum amount that can be granted for a PTZ is the lowest of the following two ceilings:

 For a newbuild dwelling

->   30% of the amount of the operation

->   100% of the other loans

For an old dwelling

->    20% of the amount of the operation

->  50% of the other loans

The amount of the PTZ is also capped according to various criteria, such as the number of people with taxable status, the geographical area and whether the dwelling newbuild or not.  Please find out the correct information!

3. METHODS OF REIMBURSEMENT

Reimbursements are defined on the basis of income, geographical region and whether the dwelling is new or not. Please find out the correct information!

4. INCREASED LOAN AT ZERO RATE


The amount of the PTZ is increased by 50% in Sensitive Urban Areas (Zones Urbaines Sensibles) and Free Urban Areas (Zones Franches Urbaines).


The amount granted as a zero rate loan may be increased by a maximum amount of 15,000 euros for transactions involving social accession to a property or a newbuild assisted by the territorial local authorities.

 

Building Diagnostics

Urgent cases will be dealt with in less than 48 hours,
As soon as we are in possession of all of the necessary information …
FNAIM et Chamber of Building Diagnosticians

Measurement “CARREZ Law”:

Buildings covered: All private property in co-ownership (condominium)
When? Pre-promise of sale
Period of validity: Unlimited without modification
Legal references: Law: no. 96-1107 of 18 December, 1996 - Decree: 97-532 - Of  23 May, 1997

Diagnosis “CARREZ Law”:

Buildings covered: All buildings for which the building permit predates- 1 July, 1997
When? Pre-promise of sale - Prior to works - Prior to demolition
Period of validity: Unlimited without  presence of asbestos for 3 years (sale) if asbestos has been present
Legal references: Decree: no. 96-1133 of 24 December, 1996 - Public Health Code - Article 1334-15 - Schedule 1  of the Order of  22.08.02 - Standard: AFNOR NFX 46-020

Diagnosis “LEAD”:

Buildings covered: All buildings built before 1 January, 1949
When? Pre-promise of sale - Pre-rental contract - Since 12 August, 2008
Period of validity: Unlimited if the result is negative  for 1 year (sale) if lead has been present 6 years (rental) if lead has been present
Legal references: Law of 29 December, 1998 - Decree 99-483 of 9 June, 1999 - Order of  12 December, 1999 - Circular DGS/SD7C/2001/27 of 16 January, 2001

Diagnosis “of Energy Performance”:

Buildings covered: All buildings built “excluding exceptions”
When? Pre-promise of sale - Pre-rental contract - Prior to delivery of newbuild property
Period of validity: 10 years
Legal references: Law no. 2004-1343 of 9 December 2004 - Ordinance no. 2005-655 of 8 June 2005 - Decree no. 2006-1147 of 14.09.06

Diagnosis “Gas”:

Buildings covered: A dwelling with a fixed installation more than  15 years old Or a certificate of compliance more than three years old 
When? Pre-promise of sale
Period of validity: 3 years
Legal references: Law no. 2003-8 of 3 January, 2003 - Article 2  of the order of 02 August, 1977 - Decree of 06 April 2007 - Standard: AFNOR XP P45-500

Diagnosis “ELECTRICAL”:

Buildings covered: A dwelling with an installation more than 15 years old or a certificate of compliance more than three years old
When? Pre-promise of sale as from 1 January, 2009 produced as a notarial deed
Period of validity: 3 years
Legal references: Article L 134-7 Of 26 July, 2007 - Decree of 08 July, 2008 - Standard: AFNOR XP C 16 600

We have a training and information structure that we offer to all our partners “by appointment”

Tax credit

23°: Tax credit for equipment expenditure for main home  - Article 200 quater

Tax-payers resident in France may benefit from a tax credit on income on the basis of expenditure actually made for the improvement of the environmental quality of the dwelling they own, which they rent or which they occupy gratis and which the use as their main home or dwellings completed more than two years previously of which they are the owners or which they have undertaken to rent without usufruct for use as their main home for a minimum period of five years to persons other than their spouse or a member of their household for tax purposes.

The tax credit applies:

•  To expenditure related to a building completed more than two years previously and paid for between 1 January, 2005 and 31 December, 2012, for the purpose of:

1. The acquisition of condensing boilers;
2. The acquisition of thermal insulation materials and heat regulation devices; (see below)

The tax credit is equal to 25% of the cost of equipment materials and devices. This rate is increased to 40% where the expenditure involves a dwelling completed prior to 1 January, 1977 and must be performed no later than 31 December of the second year following that of its acquisition for payment or gratis;

• To the cost of equipment for energy production using a renewable energy source or heat pumps other than air / air pumps, whose basic outcome is the production of heat.
   
• The tax credit is equal to 50% of the cost of the equipment. However, for boilers and heating equipment or hot water-producing equipment that is standalone and operates on wood or other biomass and heating pumps, the rate is reduced to 40 % for expenditure made in 2009 and to 25 % for expenditure paid as from 1 January, 2010; where these devices are installed in a dwelling completed prior to 1 January, 1977 and the expenditure is made by 31 December at the latest of the second year following that of the acquisition thereof against payment or gratis, the rate is fixed at 40%;
   
• For the cost of equipments for connection to the heating network, fuelled mainly by renewable energy or by a co-generator installation
   
• Toward the cost of equipment for the recovery and treatment of rainwater
   
• The tax credit is equal to 25% of the cost of the equipment;
   
• For expenditure related to a building completed more than two years ago, paid for between 1 January, 2009 and 31 December, 2012, for:

Laying thermal insulation  material in opaque partition walls;
 

1. The tax credit is equal to 25% of the amount of the expenditure. However, where the expenditure involves a dwelling completed prior to 1 January, 1977 and the work is completed by  31 December at the latest of the second year following that in which the property was acquired against payment or gratis, the rate is fixed at 40% ;
2. The performance of an energy performance diagnosis, apart from cases which render it compulsory under the regulations, as defined in article L. 134-1of the Construction and Housing Code. For a particular dwelling, a single energy performance diagnosis will open the way to a tax credit for a period of five years.

The tax credit is equal to 50% of the amount of expenditure.

 The tax credit is applied to the calculation of the year of payment of the expenditure by the taxpayer or the year of completion of the dwelling or of the acquisition thereof  if this is at a later date.

In the case of a dwelling whose owner, tenant or occupant gratis uses as his/her/their principal home, the amount of expenditure that gives the right to a tax credit may not exceed for a period of five consecutive years between 1 January, 2005 and 31 December, 2012, the sum of € 8,000 for a single man or woman, widow or divorcee and €16,000 for a couple subject to joint taxation. This amount is increased by 400 euros per dependent person where articles 196 to 196 B apply. The sum of 400 euros is divided in half if this dependent is a child considered to be in the joint custody of each of its parents.

In the case of the same dwelling that has been rented out, the amount of the expenditure that give the right to a tax credit for the lessor may not exceed, for the period between 1 January, 2009 and 31 December, 2012, the sum of €8,000. In a single year, the number of dwellings rented out and being the subject of expenditure that entitles the owner to a tax credit shall be limited to three per taxable household.

The equipment, materials, devices and installation work shall cover everything shown on the contractor’s invoice or, where applicable, the equipment shown in a certificate supplied by the vendor or builder of the dwelling. The expenditure on the energy performance diagnosis mentioned covers all of that shown on the invoice issued by one of the persons mentioned in article L. 271-6 of the Code of Construction and Housing. This invoice must include a statement to the effect that the energy performance diagnosis that has been performed is not included in case in which the regulations make it compulsory.

Property in question :

Property in question

This arrangement applies to purchases in newbuild buildings (in accordance with article L111.9 of the Code of Construction and Housing) destined for rental, acquired after 1  January, 09, or older property which is undergoing a change of use for conversion to residential property located in old buildings that therefore require a lot of work (*).
(*) eligible dwellings are those that do not meet the public health standards under at least four  of the fifteen headings in an official descriptive report (drawn up by a court bailiff). The restoration work  should provide the dwelling with the fifteen public health and technical performance requirements that are similar to those for newbuild. The common parts must be considered as being “decent”.

Rental undertaking

A minimum of nine years (possibility of an extension for 2 x 3 years)

Tax advantage

For 2009 and  2010: 25% of tax reduction calculated on the cost of acquisition (or wholesale price) of the property capped at 300,000 euros per taxpayer: a single arrangement under the  Scellier law per year and per taxpayer with a reduction of taxes over a nine-year period from the date of completion or the date of the sale by private treaty, whichever is the latest.

NB: this reduction will only be 20% (instead of 25%) for the years 2011 and  2012.

Possibility of postponing the reduction in the case of “SCELLIER social” (twice) by three years  3 with a 2% reduction per year. Please consult us for further information!


Cumulative effect with the other landlord benefits

The provisions of the Scellier Law cannot be added to those granted through other legislation such as the Robien, Borloo, ZRR, Girardin, Malraux or Historic Monuments laws.

A 30% reduction in gross rents covered in the Borloo  provision (formerly the Besson provision ) is applicable on condition that the caps on more “social” rents and  caps on tenant resources are maintained: see the table below.


Rental to an ascendant or descendant

Property may be rented to an ascendant or a descendant (though the “social” aspect will not then apply)

RENTAL INVESTMENT: RENTAL CEILINGS (in €/per month/m2)