Financial Aid for the purchase of real estate in the border region with Switzerland: Buying real estate represents a significant investment. It may require a considerable financial effort. Fortunately, there are several aids for purchasing new real estate in France.
These measures were put in place to allow households to more easily access property, particularly in the border region of Haute-Savoie and Ain.
The Zero Rate Loan (PTZ)
This financial assistance is reserved for first-time buyers. The interest-free loan is reserved for households purchasing their main residence. Certain conditions must be met to benefit from it. This loan does not concern, for example, buyers who have owned their main residence during the last two years.
The PTZ is also subject to certain resource conditions which vary depending on the geographical location of the property. The amount of the PTZ also depends on the number of people in the household.
You should also know that the PTZ can only finance part of the real estate purchase. It must be supplemented by other sources of financing such as a traditional real estate loan or a personal contribution.
The Housing Savings Plan (PEL)
This is a medium-term investment that must be used for the purchase of housing or the construction of a property. With this system, you can acquire a house for sale near Geneva or a house for sale on the Swiss border. In all cases, the property must serve as a primary residence or secondary accommodation.
The PEL also allows you to benefit from a property loan at an advantageous rate, once the savings phase is over. The amount granted depends on the capital saved. It can thus reach up to 92,000 euros for a PEL opened for at least 10 years.
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The interest rate of the loan is fixed when you subscribe to the PEL. It cannot be changed subsequently, even if market rates change. However, the granting of the loan is subject to certain conditions, in particular in terms of the minimum savings period, the amount saved, and the real estate project.
It is also possible to close a PEL before the end of the savings phase. This, however, entails penalties and a loss of benefits associated with setting up a home loan.
Housing Assistance (AL)
This financial assistance is aimed at first-time home buyers who benefit from an approved loan or a social accession loan. The amount is calculated based on the size of the household, its income, and the amount of the property loan.
AL can also be granted to tenants and residents in shelters under certain resource conditions. Various criteria are taken into account to define the amount. These include, among other things, the composition of the household, the geographical location of the accommodation, the amount of rent, or the monthly repayment of the property loan.
Household income is also taken into consideration. AL is paid monthly by the Family Allowance Fund (CAF) or the Mutualite Sociale Agricole (MSA) depending on the scheme to which the beneficiary is affiliated.
The Housing Action Loan (PAL)
The PAL (formerly the 1% Loan) allows you to finance the purchase of a first main residence thanks to attractive rates. The PAL is reserved for employees of a private sector company with more than 10 people. It must be repaid within a maximum of 20 years.
The PAL is also accessible to non-permanent public sector employees as well as to retirees for less than 5 years and to young people under 30 in professional mobility. The amount awarded can reach up to 40,000 euros.
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Its interest rate is set at 1% over the entire duration of the loan. Reimbursement of the PAL can be deferred for up to 5 years. However, the repayment period cannot exceed 25 years.
The PAL can be combined with other housing assistance such as the Zero Rate Loan (PTZ) or Personalized Housing Assistance (APL). To benefit from the PAL, the subscriber must submit an application file to Action Logement. This is the approved joint collection body (OPCA) for company contributions to finance employee housing.
The approved loan
The approved loan is intended for the purchase of a main residence or a rental investment, without resource conditions. The loan can finance several types of acquisitions: new housing, land to build on, or certain works. It is compatible with other loans and it can give the right to APL.
The approved loan can also finance the purchase of an old home, as well as certain energy improvement or renovation work on the home. The amount of the agreed loan depends on the real estate project and the repayment capacity of the borrower. It can reach up to 100% of the total cost of the operation.
The interest rate of the agreed loan is set by the lending financial institutions, but it is capped by the State. The repayment of the approved loan can be spread over up to 25 years for the acquisition of a main residence.
It goes up to 20 years for rental investment. The approved loan can be combined with other loans such as the Zero Rate Loan (PTZ) or the Housing Action Loan (PAL).
The Social Accession Loan (PAS)
The PAS is an approved loan intended for low-income households who wish to acquire their first property. It has an advantageous rate set by the State and it is distributed by banks. The PAS allows you to benefit from APL in addition.
It is reserved for households whose income does not exceed certain ceilings. These vary depending on the geographical location of the property and the composition of the household. The PAS can finance the acquisition of a main residence, whether old or new.
It can also be used to finance certain energy improvements or renovation work in housing. The amount of the PAS depends on the real estate project and the repayment capacity of the borrower and can reach up to 100% of the total cost of the operation.
The PAS interest rate is set by the State and is lower than the rate of a traditional property loan. As for the repayment, it can be spread for up to 30 years.
The Social Rental-Acquisition Loan (PSLA)
The PSLA is an approved loan. Thanks to a “rental-ownership” contract, the future buyer occupies the accommodation as a “tenant-owner” and pays a fee to the lessor.
At the end of his contract, he can become the owner of the accommodation.
The PSLA allows low-income households to access the ownership of new housing at an affordable price. It is accessible under certain resource conditions, in particular the geographical location of the property and the composition of the household.
The PSLA takes place in two phases. The rental phase, during which the buyer occupies the accommodation as a tenant-owner. The accession phase, during which he becomes the owner of the accommodation.
The Social Rental Loan (PLS)
The PLS concerns any natural or legal person. It allows you to obtain VAT at a reduced rate and an exemption from TSPB for 25 years. To benefit from this system, the borrower must sign an APL agreement with the State and respect certain conditions. This type of loan is used to finance social rental housing intended for low-income households.
The PLS also allows you to benefit from a reduced rate VAT, set at 5.5% instead of 20%. The borrower also benefits from an exemption from the Tax on Office Areas and Parking Lots (TSPB) for 25 years.
In conclusion, there is a lot of financial assistance available for the purchase of real estate in the border areas of Ain and Haute-Savoie. Whether for home ownership or for carrying out energy renovation work, this assistance can allow you to realize your real estate project in the best conditions.
However, it is important to be well-informed and to be supported by real estate professionals. C&V habitat advisors are at your disposal to answer all your questions help you find the new property that meets your expectations and your budget, and support you in your search for financing.
Do not hesitate to contact us to find out more about our new programs in Savoie, Haute-Savoie, and Pays de Gex.