» Most asked questions

• Why invest in French property for elderly people or retired people ?
• How Does investyz makes money ?
• Why should I buy through Investyz instead of dealing direct with the developer ?
• Should I invest in property or in stocks/shares ?
• Are all your properties off-plan/new build ?
• What are the benefits of buying a new build property in France ?
• How much money do I need to invest in a property through Investyz ?
• Can Investyz help me to re-sell the property if the need be ?
• Who finds the tenants and deals with any tenancy issues that may arise ?
• What is the Investyz new build property purchasing process ?
• What is the role of the French Notary ?
• Can you help for French Inheritance and tax law ?
• What are the risks to purchase a new build property in France ?
• What kind of taxes I will have to pay with properties purchased trough Investyz ?
• Are there any fees and if yes, how much are they ?
• I know someone who might be interested in buying your product, have you got a referral scheme ?

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Why invest in French property for elderly people or retired people ?

Investyz is the leading property investments advisor in this niche market, and we truly believe in this sector for a few reasons: - Demographic trends and needs:
Between 2005 and 2025, the number of elderly, dependent people in France will rise by 26%
In 2025, people over the age of 65 will represent 25% of the population.
In 2025, a minimum of 500 000 EHPAD rooms will be needed, which is 50% more than the number available today
- Low risks:
As a country, and unlike emerging markets, France offers a low risk, stable property market across the board, and has with strict, respected and enforceable property laws.
The sector of retirement homes, specially the ones built for dependent individuals, is regulated by the government, meaning publicly accessible information, building standards, and management of centers by reputable companies.
- Guaranteed net rental, no running costs:
The lease agreement you sign with the management company is usually between 9 and 11 years and renewable. By this contract this management company guarantees you the net rental.
All the maintenance and the refurbishment costs have to be taken by this management company, according the article 605 and 606 of the French Civil Code.
- Tax incentives from the French government:
Because of the significant lack of supply of properties for the elderly, the French government has created a range of incentives to promote and encourage investment in this sector.
For example, the VAT payable on new built properties is refundable, meaning a 19,6% saving from the start. Also, the rental income is not taxable for up to 30 years.
These incentives are available to French and foreign investors alike, as funds from sales of these properties allow developers to continue building in order to deal with significant shortages in this sector.
- Liquidity:
When you re-sell this type of investment, the new owner benefits from exactly the same tax advantages and guaranteed yields when he/she takes over the remainder of the lease.
Investyz can also helps you re-sell your property investment, whether you purchased it originally through ourselves, or another agent.
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How Does investyz makes money ?

We get paid by the developers. By providing excellent service, we grow our client base and transaction volumes, which in turn allows us to negotiate commissions for ourselves and perks for our clients. Lastly, we charge a Client fee of 1000 euros which is fully refundable within 3 to 6 months after the closing date.
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Why should I buy through Investyz instead of dealing direct with the developer ?

The price is the same if you buy directly from the developer however, you will not get Investyz all-in-one package of services, including legal advice, a dedicated account manager with strong experience in this market, unlimited post property completion support and so on.
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Should I invest in property or in stocks/shares ?

We obviously believe the answer is property! There are a few strong reasons for it:
- By using a mortgage you do not pay the full price of the property (in cash) but only the required minimum i.e. the deposit. This is not possible with stocks.
- During periods of economic difficulty, or simply because of bad management, a company can go bankrupt, or see its share price reduced to pennies. Nothing to sell, no dividends to collect. That is bad news for your investment. Property, on the other hand, holds its value better and while it can decline, it can never be wiped out. And even if the capital value decreases, the investment will still produce returns, month after month.
- A property investment carries with it a range of tax breaks, which stocks do not, enabling you to reduce your tax exposure legally. There are many things you can do to avoid tax costs with property investment, which are not possible with stocks
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Are all your properties off-plan/new build ?

All the properties we select are freehold and most of them are off-plan, but sometimes we offer already completed ones if we think they would represent of good value for our clients.
New build or off-plan property refers to property recently built or scheduled to be built and the offered for sale.
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What are the benefits of buying a new build property in France ?

Purchasing a new-build or off-plan property in France is a clear and safe process subjected to the strict French Property Law, formulated to protect the purchaser's rights:
- A maximum of 5 % deposit is needed to reserve a unit instead of usually 10 % for a resale property.
- Your deposit is safe in an escrow account of the French Notary and is fully refundable 7 days after you have signed the reservation contract according the French law.
- Legal/Notary fees are only 3% to 4% of the purchasing price compared to 7% to 8 % for resale property.
- If you are a cash buyer, payments are made as construction progresses.
- New build/off-plan properties benefit from latest building standards and offer most of the time great long-term capital appreciation.
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How much money do I need to invest in a property through Investyz ?

We can arrange very competitive financing solutions, with loan-to-value ratios of up to 100%, depending on client's credit rating and personal circumstances. However, in the current climate, better rates can be obtained with a smaller LTV ratio.
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Can Investyz help me to re-sell the property if the need be ?

Yes, Investyz resale department will be delighted to help.
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Who finds the tenants and deals with any tenancy issues that may arise ?

Most of the properties we offer - and all of them in the senior residences market - are part of multi unit developments, and have a facility management company that deals with everything, from cleaning common parts and fixing leaky sinks, to preparing meals and social activities.
But more importantly, part of your investment is contract with the developers which stipulates that monthly rental income will be guaranteed for at least nine years, and they take on full responsibility for finding tenants, collecting rent and paying you.
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What is the Investyz new build property purchasing process ?

Do not forget that your dedicated account manager is there to assist you for the bank and Notary details, as well as the rest of the whole process.
All the new build property purchasing in France, called "Vente en l'état future achevement" in French or V.E.F.A is ruled by the articles 261.1 and following of the French Code of Construction and Dwelling.
All the new build/off plan properties in France are put on the public sale several months, sometimes more, before the construction of the development starts and can be sold within weeks.
We can always arrange a viewing of the site, however keep in mind the earlier you reserve a unit, the best choice you have.

- The property reservation process:
If you are interested to buy, we can check the availabilities straightaway with the developer, and you can ask us to place an option on a particular unit, which means we ask the developer to hold the unit you have chosen (usually for up to 48 hours). During this time and without any obligation to purchase, you can reserve the property or decide to pull out from the deal.
To reserve a property, a fully refundable deposit in euros is requested. Maximum 5% of the purchasing price if the delivery date is within one year, 2% between one and two years and 0% if more than two years.
This deposit must be wired by transfer bank to the escrow account (compte sequestre) of the French Notary who represents the state. In the meantime, you have to complete and sign the Investyz term's and condition form and pay the fully refundable Client fee of 1000 euros (refunded within 3 months after the closing date).

- Secure your property:
By paying the deposit and signing the reservation contract also sometimes called preliminary contract, you reserve and secure the property in your name at a fixed purchasing price.
This way you pay the price fixed in your reservation price even if the property you receive several months later has increased its capital gain !
You will find in your reservation contract:
- The description and the confirmation of the price of your property
- Building construction and stage payments schedule and date of delivery
- A form which confirm if you are a cash buyer or if you need a mortgage (We will be happy to help you to arrange a loan with a French bank at the best rates available).
- The floor plan and most of the time the site plan of the development
- The Declaration of Natural Hazards "Declaration des risques naturels".This document made by the French authorities mention the natural risks such as flooding, forest fire, earthquake and so on. This is a proof there is no major risks for the building and the people living inside.
You will have to sign and date this reservation contract which will be later countersigned by the French Notaire and attached to the Deed of Sale.

- Finance your property:
- If you are a cash buyer:
For all the off-plan properties in France, the payment of the purchasing price is made in stages as the construction of the development progresses.
This way you are able to spread the purchasing costs over several months and it makes easier to plan when to release your savings.
According the French law, the stages payments are stated in the reservation contract. After the 5 % reservation deposit here are the next stages:
15 % when the construction of the development starts
15 % at fondations stage
20 % floors
10 % upper flooring
5 % water tight
15 % partition walls
5% tilling/carpeting
5% on completion of works
Last 5 % at the key handover (delivery)
By law, no stage payment is requires between the deposit payment and the signature of the Deed of Sale with the French Notary, even if in the meantime the construction works has started. At the time of the signature of this Deed of Sale you will have to pay the Notary fees and the payment corresponding to the stage the building construction has reach.
After you have signed the Deed of Sale, the stage payments start. Each stage of the development construction is signed by an independent surveyor, who confirms that the whole building has been completed by a specific certificate (Attestation d'avancement des travaux). Then the developer will request to pay this next to last stage payment. The final payment is made by the buyer the day he/her takes to key of its new property.
- If you request a French mortgage:
You are absolutely free to find your self a French or a mortgage from a different country, however please not that this service is included in the Investyz All-in-One package.
We always advise our clients to take French mortgage, because the loan will be in euro currency and the banks we have a partner ship with have the best rates available and can give you a decision in principle before you choose your suitable property and they know the developers we work with and the French off plan property purchasing process.
French banks will usually lend up to 85 % of the purchasing price, with variable or fixed rates available. The term is usually between 7 to 25 years and most of the time on a repayment basis (no "interest only payments"). The mortgage has to be approved by the bank within one month after the signature of the reservation contract. Then once you have made your down payment, the bank will pay the stage payments on your behalf.
All the French banks apply a fee called "Frais d'Hypotheque" calculated on a percentage of the purchased price and charge also a administration fee of circa.1 % of the borrowed amount.

- The registration of your title of ownership: The Deed of Sale:
In order to give you time to properly understand and agree the contents, the French Notaire will post you by recorded delivery a draft of the Deed of Sale called in "Projet d'Acte", circa. 4 to 6 months after you have signed the reservation contract.

At this time we strongly advise you to take advantage of the exclusive French independent lawyer consultation provided in the Investyz package in order to make the best decisions regarding the French inheritance and tax law.

The signature of the final Deed of Sale must take place within one month following the recorded delivery receipt of the draft of the Deed of Sale.

Note:
The final Deed of Sale must be signed in the presence of the French Notary. If you live abroad or cannot be there the day of the signature, you can use an Apostille legalization service. An Apostille certificate confirms the person that signed the document (you) has the authority to do so and that the document should therefore be recognised as legal without further evidence in another member state. A member state being any country which has joined the Hague Convention.
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What is the role of the French Notary ?

A French Notary or "Notaire" is an independent government officials who represent the state. It is compulsory by the French law to use a Notaire to buy any property in France. The Notary is there to ensure that the whole transaction is done correctly. For example, to verifying the name and title of the property owner, to control if the property is conform to the French construction standards, to draw up the Deed of Sale "Acte authentique de vente".
The Notary or French conveyancing costs are between 2.5% and 4% and are paid to the Notaire when signing the Deed of Sale.
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Can you help for French Inheritance and tax law ?

Yes! When investing in French property, it is important to have a good understanding about the inheritance and tax system and it is imperative to make your choice about the way you want to own your property (joint ownership, sole name, company) before the signature of the Deed of Sale.
This is why a consultation with a French experienced lawyer is included in the Investyz package.
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What are the risks to purchase a new build property in France ?

In order to minimize the risks, the new build property buyer in France is highly protected by the French law. Please find below more information:

-Reservation deposit refund:
According the French law, the reservation deposit can be refunded if:
- if the buyer cancels the reservation within the 7 days "cooling off" period after the signature of the reservation contract. This period starts at the date you receive the formal acknowledgement from the developer of your reservation contract and deposit by recorded delivery at your home address.
- if the buyer has requested in the reservation contract a French mortgage and did not obtain it within the statutory mortgage application period (4 to 6 weeks after signing the reservation contract)
- If the sale is not competed within the period specified in the reservation contract due to circumstances within the developer's control.

-Situations when the purchaser can recover all the funds paid to the developer:
- The developer did not respect the date in the preliminary/reservation contract for signing of the final Deed of Sale contract;
- The final purchase price mentioned in the Deed of sale or at completion is at least 5% higher than the provisional price, excepting any increases permitted by a price revision clause that may be in the preliminary/reservation contract;
- The buyer do not obtain a mortgage as set out in the preliminary/reservation contract, or the mortgage offer is lower by at least 10% than that set out in the preliminary/reservation contract;
- The property structure at completion is different than that set out in the preliminary/reservation contract and these differences reduce by more than 10% the value of the property;
- That communal facilities, as set out in the Deed of Sale, are not provided.

Note:
If you wish to withdraw using one of these grounds then you must send a recorded delivery letter to the seller and the bank (or Notaire) holding the deposit. You are entitled to a full refund within three months of your demand.

- Financial guarantee that the development will be achieved:
The French law obliged the developer to provide a financial guarantee that secures completion of the whole property development in the event of bankruptcy, liquidation or failure to complete the building on time or at the agreed price.
The guarantee is arranged via an insurance company and is called a garantie d'achèvement.

- Building guarantee:
The French law provides an extensive protection to the new build property buyers in France with three guarantee:
- 10 years structural guarantee: This guarantee covers any structural disorder of your property making it unfit for its intended use.
- 2 years fixtures and fitting guarantee: This guarantee covers items such as plumbing, electrical fittings, paintwork, carpets,..
- 1 year perfect completion guarantee: This guarantee covers any general problems arising in the first year from the date of moving into your new build property.
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What kind of taxes I will have to pay with properties purchased trough Investyz ?

Taxation is a complex subject and full independent advice on the particular facts of a case should be sought. This why Investyz includes a consultation with a French tax and property Lawyer, who will be able to provide the most suitable advises according your personal situation.
However please find below an short overview of the property taxes in France:
After you have signed the final Dees of Sale you are officially the owner of your property. Then you have to register with the French Taxation Center for Non-Residents in order to avoid a double taxation in France and in the country where you live.

- Local taxes paid both by residents or not French residents will to pay:
- Taxe Fonciere (Taxe on the buildings):
The taxe foncière is paid by the owner of the property, irrespective of who occupies it. The taxe foncière bâtie is paid on any property that is habitable whether or not it is actually occupier. New houses, or renovated properties, used as a home are spared taxe foncière for the first two years after construction.
- Taxe d'habitation (Occupier's tax):
The taxe d'habitation (occupier's tax) is paid by the occupant of a property. So, you will pay it if you own a residential property and use it yourself (or have it available for your use), or it is paid by the tenant if you let the property.

- Capital Gain tax:
- Residents of France are mostly subject to fixed rates of capital gains tax: property gains are taxed at 16 percent (plus 12.1 percent social charges) and gains on shares at 18 per cent (plus 12.1 percent social charges). The gain is the difference between the sales proceeds and the cost price.
- Non-residents pay tax on French property gains at 16 percent if resident in the EU, Norway or Iceland, or 33 1/3 percent if resident elsewhere, with no social charges. Non-residents are exempt from French capital gains tax on most shareholdings, although certain business or property company shareholdings are taxable.
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Are there any fees and if yes, how much are they ?

- Investyz Gold option:
- 1000 euros, refundable within 3 to 6 months after completion date. This service includes:
- Expert property consultancy
- Dedicated account manger
- 1 year post-completion support

- Investyz Premium option:
- 500 euros, non-refundable. This service includes:
- Expert property consultancy
- Dedicated account manager
- Unlimited post-completion support
- Help arranging local financing (if needed)
- One hour consultation with a fully qualified French lawyer.
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I know someone who might be interested in buying your product, have you got a referral scheme ?
With the Investyz referral scheme, you can be rewarded with up to 2,500 euros for every person you recommend who buys a property through us. There is no limit, the more new buyers you refer to us, the greater the rewards!
Just send us the name, the contact number and email address of the interested party, and we will get in touch on your behalf. Alternatively, give them our contact details and make sure they tell us they are being referred by you when they get in touch. You can submit the contact details by clicking on this link here.
We pay based on the following scheme :

Property Price (in euros)	Your Commission (in euros)
Up to 50,000 HT	250
51,001 to 100,000	500
101,001 to 200,000 HT	1,000
201,001 to 300,000 HT	1,500
300,001 to 500,000 HT	2,000
Above 500,000 HT	2,500

The referral fee will be paid upon completion, as a result of a documented referral. The fee will be paid in Euro Transfer within 2 weeks of our commission being paid.
Terms and conditions:
1.The client referred should not be registered on our database before the referral is made (deregistration and registration again will not be taken into the account).
2.Any taxes, bank charges or any other charges related to this scheme are the responsibility of the person who referred the client.
3.Referrals cannot be backdated.
4.Referral fees will only be paid for the first occasion that a referred member purchases a property through Investyz.
5.Subsequent property purchases by the referred member will not qualify for referral payments.
6.You will only be eligible for the referral fee once a firm contract has been secured, the deposit has been paid by the buyer and the commission has been paid in full to Investyz by the Developer/Vendor. If the commission is being paid in stages to Investyz, you will in turn be proportionately paid.
7.Investyz reserves the right to refuse a referral at its absolute discretion