France is one
of the most beautiful countries in Europe with the most varied landscape
and infinite variety, including beautiful unspoilt countryside for nature
lovers; magnificent historic towns and châteaux for history enthusiasts;
an abundance of mountains and waterways for sports lovers; vibrant Parisian
night-life for the jet set; vintage wines and haute cuisine for gourmets;
a wealth of culture, art and serious music for art lovers; and tranquillity
for the stressed. Nowhere else in the world is there such an exhilarating
mixture of culture and climate, history and tradition, sophistication and
style. It’s often said that when buying real estate in France you aren’t
buying a home but a lifestyle!
After having
decided to buy a home in France, your first task will be to choose the
region and what sort of home to buy. If you’re unsure where and what to
buy, the best decision is to rent for a period. The secret of successfully
buying a home in France (or anywhere else for that matter) is research,
research and more research, preferably before you even set foot there.
You
may be fortunate and buy the first property you see without doing any homework
and live happily ever after. However, a successful purchase is much more
likely if you thoroughly investigate the towns and communities in your
chosen area; compare the range and prices of properties and their relative
values; and study the procedure for buying property. It’s a wise or lucky
person who gets his choice absolutely right first time, but there’s a much
higher likelihood if you do your homework thoroughly.
One of the
things that attracts many buyers to France is the relatively low cost of
property compared with many other countries. However, the French don’t
generally buy domestic property as an investment, but as a home for life,
and you shouldn’t expect to make a quick profit when buying property there.
Property values generally increase at an average of around 5 per cent a
year (or in line with inflation), meaning you must own a house for
around three years simply to recover the high fees associated with buying.
Property prices rise faster than average in some fashionable areas, although
this is generally reflected in higher purchase prices. The stable property
market in most areas acts as a discouragement to speculators wishing to
make a quick profit, particularly as many properties require a substantial
investment in restoration or modernisation before they can be sold at a
profit.
Note
that capital gains tax can wipe out a third of any profit made on
the sale of a second home. A slice of la bonne vie needn’t cost the earth,
with habitable cottages and terraced village homes available from around
200,000F, modern apartments from around 300,000F and large detached homes
from as little as 400,000F. However, if you’re seeking a home with a large
plot of land and a swimming pool you will need to spend at least 600,000F
(depending on the area) and for those with the financial resources the
sky’s the limit, with luxury apartments in Paris and villas in the south
of France costing many millions of francs.
Research
There’s an
overwhelming choice of property for sale in France, which is a buyers market
in most areas. As when buying property anywhere, it’s never advisable to
be in too much of a hurry. Have a good look around in your chosen region
and obtain an accurate picture of the types of properties available, their
relative values and what you can expect to get for your money. However,
before doing this you should make a comprehensive list of what you want
(and don’t want) from a home, so that you can narrow the field and save
time on wild goose chases.
The most important
consideration when buying a home anywhere is usually its location – or
as the old adage goes, the three most important points are location, location
and location! A property in a reasonable condition in a popular area is
likely to be a better investment than an exceptional property in a less
attractive location. There’s no point in buying a dream property in a terrible
location. France offers almost anything that anyone could want, but you
must choose the right property in the right spot. The wrong decision regarding
location is one of the main causes of disenchantment among foreigners who
have purchased property in France.
Note that it’s
often difficult to compare homes in different regions as they usually vary
considerably and few houses are exactly comparable.
In
most areas properties range from derelict farmhouses, water mills and barns
to modern townhouses and apartments with all modern conveniences; from
crumbling châteaux and manor houses requiring complete restoration
to luxury chalets and villas. You can also buy a plot of land and have
an individual, architect-designed house built to your own specifications.
If, however, after discussing the decision with your partner, one of you
insists on a brand new luxury apartment in Cannes and the other on a 17th
century château in the Loire Valley, the easiest solution may be
to get a divorce!
Although property
in France is relatively inexpensive compared with many other European countries,
the fees associated with the purchase of properties older than five years
are among the highest in Europe and add 10 to 15 per cent to the cost.
To reduce the chances of making an expensive error when buying in an unfamiliar
region, it’s often prudent to rent a house for a period, taking in the
worst part of the year (weather-wise). This allows you to become
familiar with the region and the weather, and gives you plenty of time
to look around for a home at your leisure.
Wait until
you find something you fall head over heels in love with and then think
about it for another week or two before rushing headlong to the altar!
One
of the advantages of buying property in France is that there’s usually
another ‘dream’ home around the next corner – and the second or third dream
home is often even better than the first. It’s better to miss the ‘opportunity
of a lifetime’ than end up with an expensive pile of stones around your
neck. However, don’t dally too long as good properties at the right price
don’t remain on the market for ever.
One of the
most common mistakes people make when buying a rural property in France
is to buy a house that’s much larger than they need with acres of land,
simply because it seems to offer such good value. Don’t, on the other hand,
buy a property that’s too small. Bear in mind that extra space can easily
be swallowed up, and when you have a home in France you will inevitably
discover that you have many more relatives and friends than you ever thought
possible! For many foreign buyers, France provides the opportunity to buy
a size or style of home that they could never afford in their home countries.
Buying a huge
house with a few acres may seem like a good investment, but bear in mind
that should you wish to sell buyers may be thin on the ground, particularly
when the price has doubled or trebled after the cost of renovation. In
most areas there’s a narrow market for renovated rural property.
There are usually
many buyers in the lower 300,000F to 500,000F price range, but they become
much scarcer at around one million francs unless a property is exceptional,
i.e. outstandingly attractive, in a popular area and with a superb situation.
In some areas even desirable properties remain on the market for a number
of years. Although it’s tempting to buy a property with a lot of land,
you should think about what you’re going to do with it.
After you’ve
installed a swimming pool, tennis court and a basketball court, you still
have a lot of change left out of even a few acres. Do you like gardening
or are you prepared to live in a jungle? Can you afford to pay a gardener?
A large garden needs a lot of upkeep (i.e. work).
Of course
you can always plant an orchard or vineyard, create a lake or take up farming!
The more research you do before buying a property in France the better,
which should include advice from people who already own a house there,
from whom you can usually obtain invaluable information – often based on
their own mistakes!
Before deciding
to buy a home in France, it’s advisable to buy a few books especially written
for those planning to buy real estate, or live or work there, such as Buying
a Home in France and Living and Working in France, both published by Survival
Books (www.survivalbooks.net).
Bear in mind that the cost of investing in a few books (and other research)
is tiny compared with the expense of making a big mistake. However, don’t
believe everything you read!
The author
- David Hampshire is the author or numerous books on living, working
and investing overseas. His website features his highly - acclaimed, best-selling
series of Survival Handbooks - C
L I C K H E R E
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