11 hours ago
Buying a French home as an expat: Tips, tricks, and traps to avoid
Whether it's a Parisian attic or a countryside villa, owning a property in France is a dream shared by many Francophiles. As well as the lure of sun-baked terraces and world-famous food, expats are drawn in by the practical perks on offer, including affordable healthcare, strong social security benefits, and a good work-life balance.
Yes, the dream is a possibility — but there are some tips and tricks you should know before starting out. After speaking with a range of experts, Euronews Business has compiled an advice list, essential for foreigners buying in France.
When it comes to choosing a property, buyers will often pick homes located in areas they've visited on holiday, or perhaps they have friends nearby. While both of these factors can give you an idea of a location, experts stress that thorough research is key.
'Read, investigate, and don't be in a hurry unless you can afford to make mistakes,' Alex Balkin, executive director of Savills French Riviera and French Alps, told Euronews Business.
'Some places are gorgeous. There's a little well in the town centre, lavender sprouting out of it, there's a lovely little cat lounging lazily in the sunshine. Then you come back in November and it's dead as a doornail. Even the bakery is shut.'
As well as checking out the area's ambiance and accessibility during the winter, it can also be useful to contact the local town hall, or the mairie. Officials can then keep you up to date with what's happening in the vicinity — including potential development plans.
In order to get a better feel for a place, some expats may also prefer to rent before they buy.
While homeowners may sell through an estate agent, many properties are also available privately, said David Yeates, editor of France Insider, a specialist French property online journal.
Even so, it's important to avoid overpaying in these cases, he explained. 'The great risk is that many private sellers overvalue their property.'
Yeates added that there are difficulties valuing French houses, particularly in the countryside, 'because there are not always obvious comparisons and sales in rural areas'.
Doing online research can help, but you may also want to pay for one or two estate agents in the area to give you their expert opinion.
When a deal is struck between a buyer and a seller, it involves more than these two parties.
In France, all real estate transactions must pass through a notaire, a government-appointed lawyer who draws up and handles the contracts. Their fees are regulated by the state and are based on the value of the property.
As the notaire is a neutral party, working for both buyer and seller, many people choose to appoint just one. It can also be useful to have a notaire for both parties, although experts say this isn't essential.
'Notaires are impartial, they're not allowed to lie by omission, and their work is backed by the French state,' Alex Balkin told Euronews Business.
Some buyers may also want to hire a lawyer, separate to a notaire, to give extra, personalised advice on complex situations.
On this, Balkin said: 'It's not always very useful, especially if they don't know the workings in France. They will, in some cases, create a problem where there isn't one.'
David Yeates noted that hiring an extra lawyer can sometimes be advantageous, particularly 'if your family circumstances are complex or the transaction is substantial'.
A lawyer could, for example, give advice on inheritance rights, as 'there are different solutions that you can adopt from the outset to deal with the entrenched rights of children'.
Gazumping is a practice where a seller agrees to transfer a property to a prospective buyer and then revokes the deal at the last moment, instead giving it to a higher bidder.
Unlike in some countries, the French market protects the buyer against this practice, as a preliminary contract binds the parties to the sale.
After the two sides sign the 'compromis de vente', the seller is committed to the deal, while the buyer has a 'cooling off' period of 10 days to change their mind.
'This period is a really important thing to know about because it allows you, the buyer, to withdraw if you have a change of heart,' Jack Harris, Partner at Knight Frank International Residential Real Estate, told Euronews Business.
'It's worth examining and understanding the suspensive clauses or conditions that can be included within this preliminary contract…because you'll then understand your liabilities as a buyer,' he added.
It's also important to have a strong idea of the costs you'll incur when buying property, as well as being realistic about the potential returns.
While some locations are anomalies, France's property market tends to be more stable than in other countries, meaning you won't see massive drops or gains in value.
'There are still very good investment areas, particularly areas like Paris, but countryside properties, they stay pretty stable … so you're not going to make huge amounts,' Joanna Leggett, marketing director at Leggett Immobilier International, told Euronews. 'These purchases tend to be a lifestyle choice rather than an investment choice.'
Leggett added that a common mistake made by foreign buyers is underestimating the cost of renovation.
'These properties have a value ceiling and you may not get all of the renovation costs back,' she explained. 'Get estimates from local artisans before you go ahead and make an offer.'
David Yeates of France Insider echoed these warnings, stressing that buyers should overestimate their costs and underestimate their incomes.
'It's very good to have dreams, but those dreams need to be proportionate to your capacity to realise them,' he said.
A reminder: the information in this article does not constitute financial advice, always do your own research to ensure it's right for your specific circumstances. Also remember, we are a journalistic website and aim to provide the best guidance, tips and advice from experts. If you rely on the information on this page then you do so entirely at your own risk.
