Buying a house in France

[Joee]

Hello all
I'm new to the forum

I wish to buy a property in France.

Quick background

• I'm 20 years old
• I live with my parents
• I have never bought anything on finance, nor do I have a credit card
• After tax, I earn about £1050 per month
• I work full time and my employment is secure
• It has been my dream for 5 years to buy somewhere in France

I plan to have £21,000 saved at the turn of my 21st birthday.

I wish to buy a property in France as a long term investment.
I am willing to buy a property that needs restoration, but not too much. For example I don't mind painting and decorating the entire house/apartment but don't really want to be re-plastering every wall in the house.

Basically I want to buy somewhere before I get caught up in a serious relationship and have kids, because before I know it my life savings will be gone!!

I plan to originally go over to France for long weekends to decorate but then eventually use the property as a holiday destination for myself, my eventual family, my friends and even letting it out for some half decent cash.

Only problem is I don't really know what I'm getting into!!

My budget will be max £60,000

I plan to own the house whilst still living with my parents.

Is it possible for me to get a mortgage in my position? Please give me some example calculations. i.e. how much would I be paying a month?
Would a loan be better?
Is it best to borrow from a UK bank or a French bank?

I just want to know how to start the ball rolling when I hit 21 in January 2013.

Please ask if you need any more information

Thanks in advance!!!!

 

[Guillaume]

Hi,
This is an ambitious dream for such a young man! But it is good to dream. I would imagine getting a mortgage would be difficult for you because of your age and the fact you may not a credit history but there is always a way if you really want something bad enough!

The fact that you plan to save around 20,000 by the time you start your search is great and maybe the key to your success. Here is an idea, let's say you find someone also that would like to buy property in France. Or maybe your parents or parents friends are interested. You could partner up with someone that can provide the things you don't have available to you and purchase the property together under an SCI (Society Civil Immoblier) and create a French holding company. This way any number of people can buy into the property as an investment. France is seen as a real estate safe haven for buyers around the world so this is probably a good time to sell an idea like this.

As far as prices and areas with good deals there are lots of internet search tools out there but if you google 14kfever and look for Paris Property Network they are all in one place on this site. Click on 'price maps' or 'search' and you should be able to get a good feel for what's going on around France.

I hope that helps.
Bon Courage!!

 

[steveinuk]

Same here

Hi,
I have same sort of idea, but much older than you Good luck!

Here is what I think to expect, but I am not an expert...

Based on €60k purchase
You'll need ~15% deposit
~8% Notaire Fees
~1% Mortgage Arrangement Fees (min €750/max€1500 roughly)
~5.1% Tax (similar to UK stamp duty)

I'm sure there is lots I've missed. Oh and apparently if buying from an agent, ask if they can list their, often extortianate, charges seperately as this can save a bit on Notaire percentage.

Would be good to hear from anyone who can confirm above as I'm looking at a place near Morlaix and will be going over next month.

 

[margaux]

Getting a french mortgage is now rather difficult and relies on employment in France in the main
Be careful of tying up all your funds in french property at the moment as you may be stuck with it for a very very long time.
Why not rent first or find a live in job perhaps?

 

[Ed_P]

Amazing idea! I would love to do the same but I moved from France to England and so I am here for a bit longer!

My only advice would be to save a lot more than you think you should as it will always cost more. Luckily for you France can be a lot cheaper than England so good luck!

 

[totallyproperty]

One interesting factor which has emerged for those looking to buy French property (while holding sterling funds) is the Euro exchange rate. In theory there is the potential to benefit from a weak euro and a weak French real estate market. In years to come, when hopefully the euro and the French real estate market have recovered, there could also be potential benefits from both areas when converting back into sterling.

Does anybody have any views on this?

 

[Charles Gibbs]

Great tips.

 

[Expat84]

I can't advise when it comes to borrowing money but one thing I would advise you when buying property abroad is don't go through your high street bank as they will charge you excess fees to transfer any money abroad. Find yourself a good online broker. I use(moderated)