The Basics of Property Investment in France
Before diving into the French property market there are a number of things to consider.
The French Property Market
Property Values
There is no real evidence to suggest that the French employ a dual pricing policy. The French are, however surprised (and frequently highly delighted) at the amount that the British are prepared to pay. Advertised prices, particularly in areas popular with the British, can reflect this.
A potential French buyer regards an advertised price, particularly on an older property, as a starting point for negotiation. He knows that the asking price is optimistic. He also knows that, although prices are higher in the south, this creates more room for manoeuvre. There is nothing to prevent a potential UK buyer from taking a similarly robust approach.
Here are some general pointers:
- New properties are more expensive than older ones but they enjoy tax breaks and benefits.
- Although the asking price is invariably more than the selling price it may be difficult to judge how much room there is to negotiate.
- Be prepared to walk away from a deal whilst showing enthusiasm for the property itself. Leave a telephone number and wait for a call.
- Never express interest in the land that the property is built Buy to Let in France on. The French are used to large plots and do not see this as significant.
- The French estate agent (agent immobilier) is aware of the buying whims of their UK customers. In some areas you will find agents with window displays in English. This is not because of the entente cordiak.
- New apartments and condominiums are expensive. They are invariably built on prime sites in fashionable areas.
- Older apartments and condominiums are variably priced. Much depends on the age and condition of the building as a whole.
- Property values decrease according to remoteness. In the same region you may find a large country house in the same price bracket as a seaside apartment.
- Certain regions, particularly towns and villages, and even certain streets, are 'fashionable'. This factor should be built into the cost equation.
- Sometimes, the seller pays the estate agent's costs. Do not be deceived. The asking price has been rounded up to take account of this.
- You can avoid agent's charges by buying direct. Local newspapers and cards placed in newsagents and supermarkets are a good place to start.
- A small garden has a different meaning on the other side of the channel. We tend to think of something larger than a window box; they regard it as something which does not require the services of a full-time gardener.
- Registration fees are lower on properties that are less than five years old.
- The legal process of purchase, including surveys and planning applications, will add between 10 and 15 per cent to the purchase price.
