As I write this the exchange rate of the dollar and the pound against the Euro seems to be settling out a little – albeit way below where it was before the world-wide financial upheaval of the last couple of years. This, of course, has had a massive effect on people looking for cheap property in France.
The good news is that French property bargains still exist. You might have to look a bit longer and work a bit harder but if your dream is of owning a home in France it’s still an achievable dream.
As an expat living in France I regularly speak to people who are looking for budget French property, usually as a holiday home but occasionally with a view to a permanent move. There are less of them around at this early part of the year but they’re all concerned about whether they’ll be able to find something.
Just a quick aside here. Spring is actually a great time to view. You can’t guarantee what the weather’s going to be like but because you’re less likely to be seduced by fields of sunflowers you’re more likely to concentrate on the actual condition of the property.
Anyway, back to our main theme.
Cheap French property is still out there if you know where to look and if you’re prepared to be flexible.
I’m definitely not advocating that you buy an old barn to convert or a tumble-down cottage – unless you’re an experienced builder. The property itself may be cheap but renovating an old house in France isn’t. There’s a good reason why so many French buy new houses and leave the old ones to us expats – it’s because new French homes are much more affordable.
I’m not saying you shouldn’t buy an old French house – they can be a delight – I’m just saying be very careful about renovation. It can easily cost you as much again as the purchase, or even more in some cases. I know, I’ve done it.
What I am advocating is going to the areas a little less known. There are several things that put up house prices everywhere – not just in France – so it follows that avoiding them will put you in a more affordable region.
Being close to the sea is a big one. Move further inland and the prices begin to fall quite swiftly. Close to the mountains, particularly ski resorts, is also a hot-spot and you’ll pay accordingly. Likewise near airports, especially with the number of cheap flights now available.
Of course your definition of cheap property in France might not be the same as mine and will certainly vary from person to person. If you’re from London or New York, most places in France will probably seem quite affordable (except Paris). In fact if you’re from the UK almost everywhere has properties that are less expensive than at home! On the other hand if you’re from less highly populated areas of the US you’ll find French house prices are pretty much what you’re used to.
By the time you read this, the exchange rate might be much higher – I certainly hope so because it will undoubtedly give you more scope. However, France is a big country and if you’re prepared to do the research and perhaps be a bit more flexible in your choice of area then you’ll find cheap property in France is still readily available. I bet one is just right for you!
You don’t have to be a property investment expert to see why so many people bought houses in France in the last twenty years. Over the period, all French property has increased enormously in price. But that was then. Is French property investment still a viable option or are the good times gone?
The answer will depend on where you are now and what you want your investment to achieve. There are still places in France that are likely to achieve significant growth but the day of the fast buck has gone. If you’re looking for a good return over time I would say that the French property market still has something for you but if you’re looking for something to buy now and expect to sell for a 15 or 20 per cent profit in a year or two, forget it.
There are lots of leaseback deals, and potential investment opportunities do exist in new build flats and community developments in big tourist areas like the coast and the Alps, but you need to have considerable money to invest in the first place and the advice of a good accountant to see whether these are tax efficient for you. It’s not an area that I am qualified to comment about.
For the ordinary person like you and me French property investment returns come down to two areas: renovation or holiday homes. So let’s look at those a bit more closely.
There are still plenty of opportunities for property renovation in France. There are houses falling down all over the place! But are they a good investment?
Well for a start, in general it’s much cheaper to build new than to renovate. That’s why there are so many tumble-down French properties around, many of the French don’t want the hassle and are happier with a new house. You would think that would be great news for the foreign buyer looking for a renovation project.
It is and it isn’t. There’s certainly enough availability and prices in many areas are still sensible. The difficulty comes with assessing just how much work is needed and what it will cost. Even if you’re a builder, plumber or electrician, French regulations are different. Twenty years ago they were very lax but now you need certified installers for this and that. French artisans are almost without exception very good at their trades – but at a price. You have to be very careful not to jump at what looks like an opportunity only to find it’s a money pit. You can certainly do it, especially if you’re prepared to get your hands dirty, but make sure it’s your head that rules, not your heart!
So what about holiday homes? Is that the best way to good French property investment?
If you’re prepared to let it out to others, you’ll certainly recoup some of your expenses and, over time, the French property market is still heading upwards (if not at the high percentage rates of a few years ago). Once again it’s a longer term investment.
That in a nutshell is the secret of French property investment at the moment. If you’re looking for out and out returns, other sources probably provide better options. However, if you’re thinking of buying in France anyway, and you steer away from the hotspots (coast, Alps, Dordogne) you’ll find plenty of properties that are bound to increase in value over the years and you’ll probably be having a great time while they do!
The French property market has been up and down like a yo-yo in recent years but still offers many bargains. Whether purely for investment, for a holiday home or as a permanent move, many people are looking to buy a house in France.
As an Englishman living in France I would recommend it to anyone. There’s plenty of space, beautiful countryside, good food and wine, one of the best health services in the world, good education… I could go on and on.
However, the French property market is a minefield. With many foreign born nationals moving into France each year (100,000 in 2006) there are a huge number of non-French estate agents and property consultants. Some of them are very good. Unfortunately there are many who are not, and some who are operating illegally.
On top of that you have the actual French property buying process that can confuse even if you speak good French. If your grasp of the language isn’t all it could be you can easily find yourself out of your depth. I’m not suggesting people will mislead you but when you’re talking about the sums of money necessary to buy even a cheap French house you have to accept that some people might want to gloss over little faults here and there. If you don’t know exactly what’s going on, you could find yourself seriously out of pocket.
For example, many rural properties are not on mains drainage and never will be. They should have a septic tank (“fosse septique” in French). In the old days these were often little more than big pits dug in the ground but nowadays they have to conform to strict regulations.
The thing is there are hundreds of thousands of properties in France that have not yet upgraded to comply with the new rules. It’s not really a problem as there are five years or more before they all have to be changed. However, if you buy a house in France and it has an old-style septic tank you will eventually have to replace it and that’s going to cost you upwards of six thousand Euros.
It’s just that sort of titbit of information that might get overlooked. Someone might tell you the house has a working “fosse septique” and that might be true, but does it comply or are you going to be left to foot the bill?
There are many other things to consider. When you consider how to buy a house in France you need to find out about the actual steps you need to take. Are you going to use an agent from your country of origin? How do you know that they’re acting legally? What certification do they need? What happens when you actually say “yes” to the house you want? What about a survey? Are there any other things you should know?
I know from my own experience that the process is quite different from buying a house in the UK. I know from what friends have said that it’s also quite different from that of the USA and of the Netherlands. It stands to reason the same will be true wherever you’re from.
So when you’re considering how to buy a house in France make sure it’s not just finding the property that you find out about. Do some research on the legal necessities and make sure you understand who needs to do what and when. It’s a bit of a minefield for the unwary but, fortunately, quite a straight-forward set of steps when you know what to expect.
Buying a property in France has been an attractive option for some time now, particularly amongst the English but also to a lesser extent the Americans, Dutch, Germans and others. But the influx of foreign buyers has been huge (around 100,000 each year) so have all the bargains been bought up or is there still cheap French property for sale?
The answer you get will depend on who you talk to and where in France you are. Talk to a property agent from anywhere on the south coast and they’ll probably tell you that cheap French property is a thing of the past. Talk to a farmer from the centre of the country and he’ll tell you the same.
The thing is, it’s a question of perspective. The agent probably mostly sees people looking for somewhere with sea views or maybe just a short walk from the beach. That’s going to be expensive. Yet friends of mine bought a two bedroom town house not 15 minutes from the south coast at a bargain price just last year. It needs a bit of work but it suits them perfectly.
Same story with the farmer. Ask him if he knows of any cheap French property for sale and he’ll shake his head. He remembers when these houses were much cheaper and might blame the influx of foreign buyers for recent rises. Yet if you come from the south east of England, for example, you’ll see comparable properties that in the UK would cost you four times as much.
The truth of the matter is that certainly prices for French property have risen far more than just inflation. In some areas houses haven’t just doubled or tripled but are many times what they were a decade ago. However, the explosive growth has now stopped and France still offers some great bargains whether you’re looking for investment, a holiday home or a permanent move.
If you pick on the so-called hot spots like the Dordogne, Provence or the Alps you’ll struggle. These places have always been pricey – even for the French. Anywhere by the sea is a similar story – but that’s the same in any country in the world that I can think of!
Go a bit inland though, to the less populated areas, and you’ll certainly find bargains. France has been suffering the loss of rural population for years and still is to some extent. The work is in the big towns and cities so that’s where many people have moved. If you can work from home, or if you’re retiring to France, then you’ll find many a picturesque village with very attractive and affordable property.
So if you hear people saying there’s no more cheap French property for sale, take it with a pinch of salt. It’s not as easy to find as a decade ago, maybe, but there are still bargains to be had. Come over here and look in the local agent’s windows, the French agents in the small towns. You’ll be amazed what you can find.
I don’t know what information you get if you fly in from, for example, the USA or Australia, but if you come by ferry from England you get all kinds of dire warnings about essential things you need when driving through France.
To be honest, a lot of it is either misleading or just plain wrong. I suspect some of it is intended to persuade you to buy stuff at highly inflated prices at the ferry port shopping area!
Perhaps I’m being overly cynical but let’s look at the facts and some of the other driving laws in France.
If you are driving in France, whether it’s your own or a hire car, you must have a warning triangle. Many cars have these built into the boot lid (trunk for our American friends) but check. From 1st July 2008 you must also have a reflective jacket. If you have a right-hand drive car the headlamps must either have “beam bender” type stickers applied or, on more modern vehicles, have their headlamps adjusted for driving on the right. If you are driving a foreign car in France it must have a sticker showing its country of origin on the rear – unless it is a modern EU license plate which already carries identification.
Incidentally, also from 1st July 2008 you must have a reflective jacket if you are cycling at night in a rural area.
Seat belts, front and rear, are compulsory if fitted. Children under 10 are not allowed in the front seats. Even in the back they must have a child seat if between 9 and 15kg. If you’re on a motorcycle, crash helmets are required at all times. I know sometimes you see a French rider without one but trust me, they’re breaking the law.
Fire extinguishers, first-aid kits and spare bulbs may be a good idea but they are NOT a legal requirements for driving through France.
So what about documents?
You must have your driving licence, vehicle registration document and a certificate of motor insurance. It’s not a legal requirement to have fully comprehensive insurance but probably advisable. Your insurance cover will vary depending on where you’re coming from so it’s just as well to check with your insurer before coming.
If you do not have a photo license then you must carry your passport at all times. It might avoid unnecessary complications if you carry it anyway as some police look oddly at any license that’s not French!
Speed Limits?
In built up areas the speed limit is 50kph. On major roads it’s 110kph (90kph if it’s raining) and on motorways it’s 130kph (110kph if it’s raining).
But sometimes it seems like they’re out to get you!
It’s common to see 40kph or slower in built up areas, particularly near schools or hospitals. You can be cruising along a motorway quite comfortably at 110kph or more and suddenly the limit will drop to 90 for no apparent reason and then go back up to 130kph. The golden rule is to keep your eyes open. No excuse will work and there are lots of speed cameras. If you get caught by a manned radar trap you’ll get an on the spot fine.
By the way, most motoring fines in France are given on the spot. You can contest it afterwards but not at the time. Make sure you get a receipt – better yet, when driving through France don’t do anything that will get you caught!
Drinking and Driving in France?
Don’t. The legal limit in France is 0.05 percent. You’ll get a fine, you may even get imprisoned. Just because you see an old French car weaving down some rural back road doesn’t make it legal. It’s the fastest and easiest way to wreck your holiday, why take the risk?
Anything else?
You’ll often see signs with RAPPEL on them. This means “remember”, as in “remember it’s still a 50kph limit”. You might see “Acoutement Non Stabilise” which is a warning of soft or unstable verges. There’s “Allumez vos phares” – turn on your headlights and “Arret interdit” – no stopping. There’s also STOP which means… stop. I asked a French friend why they use the English word. He thinks it’s because it’s fewer letters than the French and therefore can be made bigger on the sign. I don’t know the truth of that.
You’ll also notice big yellow diamonds – particularly in towns. This means you have right of way. At first this seems a bit odd – especially if you’re on a main road – why wouldn’t you have right of way?
Well it used to be that when driving through France you had to give way to the right in ALL situations. If someone was going down a main road and someone came in from a dirt track on the right, the one on the dirt track would have right of way. Fortunately this is disappearing but still exists in a few places. The yellow diamond gives you right of way, but just be careful, especially in rural areas. Sometimes older drivers forget they don’t have right of way anymore.
Roundabouts work just like anywhere else, except of course if you’re British because the traffic is coming from the other direction!
One other thing about general driving in France on rural roads. If there isn’t enough width for two vehicles don’t expect the French to stop or pull in to a convenient gateway. All they’ll do is drive with two wheels on the verge, often without losing speed! You have two choices, do the same or pull over and stop. If you don’t know the road or the state of the verge it’s often safer just to get as far out of the way as you can!
Fuel shouldn’t be a problem unless your car runs LPG. You’ll frequently find this at autoroute (motorway) services but it’s also where the fuel is most expensive. In rural areas you may find it hard to get. You will also find a lot of automated petrol stations that can be a bit fussy over which credit card they accept. Some of them won’t even take one of my French cards.
By the way, Petrol (or gas) is “essence”. Diesel is “Gazole”. Don’t ask for “petrole”, that’s parafin.
So there you have it. A quick run down of driving through France. If you normally drive on the right and you’ve never done it before, don’t worry, just take your time. Concentrate particularly when you’re coming out of junctions, petrol stations and shopping areas, that seems to be when we’re most likely to forget we’re driving on the left.
Apart from that, driving in France is a breeze. Big cities can get snarled up, of course, but compared to the UK there’s next to no traffic in rural areas and driving can once again be something you enjoy rather than something you have to do to get to work!
Buying a property in France should be a pleasure, an absolute joy, but too often people come here short on information. When you’re talking about the sort of serious money a house costs, of whatever size, it’s up to you to take due care. If you end up choosing a French house that’s got problems you’re the one who has to live with it.
So how can you take the pitfalls out of buying a French property?
Well first off, learn to speak French. I don’t mean be fluent in the language, we certainly weren’t, but learning a few words and phrases will do a couple of things. It will increase your confidence when dealing with people – and the French will recognise it. They’ll also treat you better because you’ve taken the trouble to make the attempt, however haltingly. The French are big on being polite and speaking their language is the ultimate example of this.
They’ll also be wary about what they say. Now don’t get me wrong, the French aren’t all out to pull the wool over your eyes when you’re out searching for your French property, but if they know you can’t speak the language some of them, a minority, might say things they wouldn’t otherwise. Speaking a bit of the language puts you on their level.
No, it’s not easy, but it is worth it.
Now no amount of expertise in French is going to have you understanding the processes and paperwork for buying a property in France. It will certainly help, but you need to do some research as well. The French do love their paperwork.
Fortunately the internet is a great help. There are dozens of sites offering advice on French property buying, French mortgages, Notaires (kind of a solicitor but not), in fact every facet of finding and buying your place in France.
Make sure you check multiple sources though. It is clearly in some people’s interests to promote certain things or give particular information. It’s not necessarily deceptive but a lot of them are doing this for a living, after all.
Then eventually you’re going to find yourself here in France. You may or may not have the help of an interpreter, consultant or an English-speaking agent. It’s another area you need to research. Interpreters and consultants can be a big help but they can also be expensive. What services are they offering? Would a French estate agent be doing a lot of these things anyway? These are the sort of questions you need to ask.
And when you’re buying a property in France what checks do you need to make on the building? What about planning regulations? Rights of access? For instance, if it’s a rural property does a local farmer have any rights? Does the local maire have a right to buy? It’s the sort of thing that exists in France that you may not be aware of.
None of this information is hidden from you. None of it is secret or particularly difficult to find out but the French property buying system is different so you need to make sure you know what’s going on. A French agent may quite understandably assume that you know what you’re doing. Their French clients would, why not you?
However, they are also very helpful. If you don’t know, ask. If you’re not sure, ask again. Re-phrase it perhaps. French property agents get well paid, make them work for it!
In general, to turn pitfalls into pleasures when buying a property in France, all you have to do is ask questions and make sure you understand the answers. It’s easy to get drawn into the atmosphere and the excitement and forget common sense. Don’t. This is far to big a decision to be made without all your wits about you.
The French countryside is lovely and what better place to choose to look for your French property. France is four times the size of the United Kingdom yet has the same population. The result? Much more space per head and a land filled with the kind of beautiful French country houses that many of us dream of.
What makes it even better is that most of the French don’t want them!
There are several reasons for this. The first is that there’s very little employment in a lot of the rural areas. Farming is more mechanised and one or two guys (or gals) now do the job of ten. Aside from tourism there’s very little else to bring in jobs so the young French people are moving into the bigger towns and cities.
Then there’s cost. If a French country property needs restoration it’s frequently cheaper to buy new. We foreign buyers might be willing to take on a bit of work and get our hands dirty but the majority of the French would rather not. Finally there’s the fact that many French banks and mortgage companies are happy to offer funds to us moving into their country but reluctant to lend to young couples who want to buy a place that needs restoring. It adds up to either a lack of interest or a lack of ability to finance that leaves many French country houses unwanted.
It’s as true of many a small village home as it is for a large rambling French farm house so if you’re looking around the countryside you’re often spoilt for choice.
Of course it’s not all a peaceful idyll. There are certainly bargains to be had but there are also a number of important considerations.
With the general move to the bigger towns and cities it’s become more difficult for the rural communities to provide the infrastructure that a town dweller takes for granted. Small villages have lost or are losing their schools, shops, doctors, etc., and in many areas public transport is just about non-existent. If you’re young and fit with your own vehicle it’s not really a consideration, but if you’re a bit older…
I wouldn’t want to put people off, France is a great place to live and I thoroughly recommend it. I wouldn’t swap my country home for anywhere. But you have to be realistic too, but I’d be lying if I said it’s all champagne and roses.
Renovation work isn’t just expensive for the French, it’s expensive, period! The very things that make your French country house so charming are also the things that give you the headaches. None of the doors are the same size, nor are any of the windows so if you need to change them it’s no good looking at the DIY store and seeing a bargain price, oh no. Yours are all going to have to be individually hand made.
Those lovely ancient beams might have not-so-ancient woodworm or, heaven forbid, termites. The quaint old plumbing might actually not comply with the new regulations – 8,000 Euros for a new septic tank anyone? I’m not kidding, these are exactly the things that happened to us.
Is it all worth it? Absolutely. The only traffic we get is the lady with the mail and the occasional tractor. The air is full of birdsong. The field opposite is full of sunflowers. At damn and dusk we have deer that graze at the edge of the garden.
Do a little research, have a little patience and a sense of humour and your French country house can provide you the same superb lifestyle that ours gives us.
Buying a house in France can throw up one or two little challenges. There’s the language barrier and there’s the fact that things are done a bit differently.
None of that’s surprising and if you do a bit of research and get good advice it should all go fine. One thing that many people overlook is the exchange rate, and that can be a big mistake. Whether you’re buying a French holiday home or a permanent residence, fluctuations in the exchange rate can be a disaster.
It’s an easy thing to let slide with so many other things to consider but if you’re not from a Eurozone country then changes in the exchange rate could potentially steal your house!
Not only that but it can leave you in a nightmare situation where you can’t afford to buy but you’ve signed a contract so it’ll cost you tens of thousands of Euros to get out of it.
Recent fluctuations in the financial situation worldwide should be a lesson to us all. As I write this, in April 2008, we’ve just witnessed a drop in the dollar and the pound of around 20% in four months. If you look at what that does to your holiday money then you’re looking at having a fifth less to spend.
Unpleasant, but no big deal? OK, but now look at what would have happened if you had agreed a French property purchase in December last year. Let’s say for ease of maths you are buying a French house for 200,000 Euros.
Last December, those Euros would have cost you about 252,000 dollars. However, the sale process, getting all the paperwork agreed etc, takes about 12 weeks. During that time the dollar has dropped and now you need to pay for your house.
The nasty truth is you now have to pay 316,000 dollars for the same house – that’s an extra 64,000 dollars! My guess would be that there’s no way you could easily come up with that sort of difference but pulling out of the deal is going to cost you a minimum of 30,000 dollars and that’s if the agent doesn’t sue you for breach of contract.
I’ve given dollars as an example, but much the same thing has happened between the pound and the Euro so you’re not safe if your coming from the UK to buy a French house either.
This isn’t a fantasy situation, this is fact. This is what has happened to the exchange rate in 2008-2009. Could it happen again? Well those of us who live in France weren’t expecting a drop this big – we’ve been used to a very stable rate for about three years… then bam! So who’s to say it won’t happen again?
The real point here though is that if you’re considering buying property in France it’s something that you need to keep an eye on, not something to gamble on.
When you’re looking at a French house price, are you buying with money you’ve got in the bank? If so, you might want to consider either changing your currency to the Euro or locking in an exchange rate with your bank or one of the currency exchange companies. If you need a mortgage you might want to get it sorted out early in the process and again, getting the money in Euros.
Yes, the exchange rate can go the other way and you could end up with more money than you thought. Are you going to take the risk though? It could cost you your French house.
Buying any property can have its headaches, buying property in France can throw up a few more. Don’t let fluctuations in the exchange rate be one of them.
Whether you think you can still find affordable French property is going to depend to a large extent on a couple of factors. Where in France you want to live and how much work you want to do. If you’re prepared to live away from the coasts and mountain ski resorts you’ll find some very good value houses in France. French property gets even more affordable if you’re prepared to get your hands dirty.
There are a lot of misconceptions about the French property market. Many people seem to think you can buy yourself a French house for next to nothing. Sure, if you live in the south east of England you’ll find a similar place in France for about 25 – 30% of the price, but you gone are the days when you could buy a six bedroom farmhouse with a few acres of land for 50,000. The market has matured and, unfortunately for us, the French are much more aware of what they’ve got and what they can get for it.
Similarly people think that you can buy a wreck and renovate for peanuts. It’s just not the case. French building workers, electricians, plumbers, etc., are usually highly skilled and in great demand, which of course means they’re not cheap! If you have the skills to do it yourself you’ll find materials at a good price but can you do building work and electrics and plumbing? Can you do them to the increasingly stringent French standards? If you can’t, you might find your home insurance is invalidated.
But I don’t want to give the impression that it’s all doom and gloom and bargains can’t be had. For many of us France is still a country with lots of very desirable and very affordable property.
There genuine bargains are for older properties that are very popular with foreign buyers but not with the French. The majority of the French would rather live in a new house than renovate. Indeed it’s a much cheaper choice for them. In addition to this, it’s difficult for the French to get a mortgage on a house that requires renovation. Finally there’s the lack of employment in many rural areas that leaves many young French people with no option but to move to the towns and cities.
If you want to live by the coast, you’re probably going to struggle to find something. As a general rule these areas have been well developed over the last ten to fifteen years and the barns that could be converted have been done, the houses in need of renovation have been renovated. The north coast is still not expensive by many people’s standards, but prices drop quickly when you come inland.
As you move down the west coast prices increase until the south where they’re just plain expensive by anyone’s standards. Nice and Cannes is millionaire territory and the alps aren’t cheap. Fine if you want a fortnight skiing but not the place to look for bargain homes!
No, it’s the rural heart of France that offers the real bargains even now. The Limousin has become more popular recently with an influx of Dutch, German and English buyers in part due to improved air links. It’s the Centre that offers the best house values in France at the moment though. If you’re looking for truly affordable French property, that’s the place to go.
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