Buying a property in Arras, a town with a rich historical heritage and a welcoming atmosphere, is an attractive project for many. Whether you’re looking to relocate or invest, there are a number of schemes available to help you finance the purchase of a house or apartment in this charming Pas-de-Calais town. This article explores the various financing options available, focusing on grants and loans adapted to different buyer profiles.
- Loans to help you buy a property in Arras
- Specific assistance for buying property in Arras
- Tax breaks for investors in Arras
- To conclude about real estate financing in Arras
Loans to help you buy a property in Arras
When you’re thinking about buying a property, choosing the right loans is an essential step. In Arras, several national and regional schemes are available, each with its own specific features and advantages.
Zero-rate loan (PTZ)
The Prêt à Taux Zéro (PTZ) is one of the most popular forms of assistance for first-time home buyers. This interest-free loan is designed to finance part of the purchase of a principal residence, whether a new-build property or an old-build with work carried out. However, eligibility for the PTZ depends on a number of criteria:
- Income level: The PTZ is subject to income ceilings, which vary according to household composition and geographical area ;
- Property zone: Arras is located in zone B2, which influences the maximum loan amount ;
- The first-time buyer condition: The buyer must not have owned his or her own home for the past two years.
In Arras as elsewhere, the PTZ is an excellent complement to other property loans, enabling you to considerably reduce the total cost of borrowing. It is important to note that this loan must be supplemented by conventional financing. Banks, as well as specialized brokers in Arras, can help you put together your application to maximize your chances of obtaining this loan.
Zero interest rate eco-loan (Eco-PTZ)
The Eco-PTZ is an interesting option for those wishing to purchase a property requiring energy-efficient renovation before moving in. This loan, which is also interest-free, can be used to finance work to improve a home’s energy performance. It can cover up to 30,000 euros of work, subject to certain conditions. For example, the work must be carried out by an RGE (Reconnu Garant de l’Environnement) certified professional. This assistance is particularly suited to buyers of older homes in Arras, where the housing stock may require renovation to meet current energy standards. The Eco-PTZ can also be combined with other assistance, such as subsidies from the Agence nationale de l’habitat (Anah), to further reduce the cost of the work.
The prêt conventionné and the prêt d’accession sociale (PAS) are two schemes often used by low-income households. The PAS, in particular, is designed to facilitate access to home ownership by offering a reduced interest rate. These loans are available without a means test for the conventional loan, while the PAS is subject to a means ceiling. These loans can finance up to 100% of the purchase price of the property, and are often combined with reduced notary fees. What’s more, they give access to the Aide personnalisée au logement (APL), which can reduce monthly repayments.
Specific assistance for buying property in Arras
In addition to loans, there are a number of specific grants to support property buyers in Arras, whether they are first-time buyers or investors.
Rent-to-own (PSLA)
The Prêt Social Location-Accession (PSLA) is an original scheme that enables low-income households to gradually become homeowners. It involves a two-phase mechanism: a rental period, during which part of the rent is set aside as a down payment, followed by a purchase period. The scheme offers a number of financial advantages, such as reduced notary fees, reduced VAT rates and exemption from property tax for 15 years. Rent-to-own is particularly attractive for those wishing to become homeowners at their own pace, while building up savings.
Anah grants: Habiter Sain and Habiter Serein
If you’re thinking of buying an older home in Arras, particularly in certain historic districts, you could benefit from assistance from the Agence nationale de l’habitat (Anah). The “Habiter Sain” and “Habiter Serein” programs aim to finance work to improve the health and safety of homes. These grants can cover up to 50% of the cost of the work, depending on the extent of the renovations required. They are granted on a means-tested basis, and the project must meet the criteria set by Anah. This type of support is particularly well-suited to older homes, where upgrading is often necessary.
Tax breaks for investors in Arras
Investing in real estate in Arras can be particularly profitable, especially if you know how to take advantage of the many tax incentives offered by the French government. These schemes, which are designed to encourage the construction of new homes or the renovation of old ones, enable investors to benefit from substantial tax reductions, while building up a solid property portfolio. The most relevant tax schemes for investors in Arras are the Pinel law, the Denormandie scheme and, in some cases, the Malraux and Monuments Historiques schemes.
The Pinel law: a major lever for new rental investment
The Pinel law is undoubtedly the best-known and most widely used tax exemption scheme in France for new rental investment. Created in 2014, the aim of this law is to encourage housing construction in areas where rental demand is high, such as Arras. It offers investors the opportunity to reduce their income tax depending on the length of time the acquired property is rented out.
Terms and conditions
The Pinel law applies to new or VEFA (VEFA in future state of completion) properties, as well as to older homes that have been completely renovated and meet current energy performance criteria. The investment must be made in an eligible zone. Arras is classified in zone B2, which makes the town eligible under specific conditions of prefectoral authorization. The tax reduction granted under the Pinel law is proportional to the length of the rental commitment.
Investors can choose between three durations:
- 6 years: tax reduction of 12% of the cost price of the property ;
- 9 years: 18% tax reduction ;
- 12 years: 21% tax reduction.
The amount of the investment taken into account for calculating the tax reduction is capped at 300,000 euros per year, with a purchase price limited to 5,500 euros per square meter.
Additional benefits
In addition to the tax reduction, the Pinel law enables optimized management of property assets. Investors can rent out the property to family members (parents or children), provided the latter are not part of their tax household. This flexibility is a major advantage for families wishing to invest while supporting their loved ones. What’s more, the Pinel scheme makes it possible to build up a property portfolio on credit. Borrowing interest is deductible from property income, which can further reduce the investor’s tax burden. Finally, at the end of the rental commitment period, investors can reclaim their property to live in or sell, potentially at a higher value, especially in a booming town like Arras.
The Denormandie scheme: an opportunity for renovation in older homes
The Denormandie scheme is an extension of the Pinel law that applies specifically to investments made in older property. Introduced in 2019, this scheme aims to revitalize town centers by encouraging investors to buy and renovate homes located in eligible areas, such as certain parts of Arras.
Eligibility criteria
To benefit from the tax advantages offered by the Denormandie scheme in Arras, investors must purchase an older property located in a commune eligible for the “Action cœur de ville” program, or in a zone designated by the French government. Arras is one of these communes, making the scheme particularly relevant to renovation projects in the town’s historic center. The investment must be accompanied by work representing at least 25% of the total cost of the project. The work may involve energy renovation, improving the comfort of the property, or refurbishing unoccupied premises to convert them into housing. The work must be carried out by building professionals, and the property must meet current energy standards after renovation.
Tax benefits
The tax benefits of the Denormandie scheme are identical to those of the Pinel law. Depending on the length of time the renovated property is rented out, investors can benefit from tax reductions of :
- 12% for a 6-year lease ;
- 18% for a 9-year lease ;
- 21% for a 12-year lease.
As with the Pinel law, the maximum investment is capped at 300,000 euros, giving a tax reduction of up to 63,000 euros over 12 years.
Benefits for investors in Arras
The Denormandie scheme is particularly advantageous for investors wishing to get involved in the renovation of older homes in the center of Arras, such as near the Belfry or the Grand’Place. In addition to benefiting from a tax reduction, they play an active part in the rehabilitation of the town’s real estate heritage, while taking advantage of the potential for increasing the value of renovated properties. What’s more, post-renovation rents can be attractive, given the demand for rental space in the areas concerned.
The Malraux and Monuments Historiques schemes: tax breaks for heritage lovers
For investors with a passion for preserving historical heritage, the Malraux and Monuments Historiques schemes offer unique opportunities in Arras, a city with a rich architectural heritage.
The Malraux scheme
The Malraux scheme is aimed at investors wishing to renovate properties located in protected areas or run-down old districts. In Arras, this scheme is particularly attractive for those wishing to restore buildings located in protected areas of the town center. Restoration work, which must be approved by a Bâtiments de France architect, is eligible for a tax reduction of up to 30% of the cost of the work (in zones de protection du patrimoine architectural, urbain et paysager – ZPPAUP) or 22% (in quartiers anciens dégradés). The amount of eligible work is capped at 400,000 euros over 4 years, offering a tax reduction of up to 120,000 euros.
The Monuments Historiques scheme
The Monuments Historiques scheme is designed for owners of listed properties. Under this scheme, all restoration work is deductible from overall income, with no limit on the amount, provided the property is kept for at least 15 years after the work is completed. In Arras, a town with a rich architectural heritage, this scheme is ideal for investors wishing to make a commitment to the preservation of the town’s historic heritage, while benefiting from a significant tax advantage. In addition to the deductibility of the work, property expenses (maintenance, repairs) are also deductible, which can represent a substantial tax break.
To conclude about real estate financing in Arras
Whether you’re a first-time buyer or an investor, financing the purchase of a property in Arras is facilitated by a variety of schemes tailored to different needs and profiles. The Prêt à Taux Zéro and the Éco-PTZ offer attractive solutions for the purchase of primary residences, while the Pinel law and the Denormandie scheme are powerful tools for investors. By combining these aids with subsidized loans or local schemes such as rent-to-own, you can realize your real estate project in Arras with peace of mind and in a financially optimized way.
R.C.
