Money saving tips
Unfortunately, there’s no “big secret” on how to save a fortune when buying a property in France, however there are a few things you can do if you’re looking to save money.
Hunt for hidden gems
While Paris, the Alps and the Riviera are popular areas, their property prices are less than affordable. The same goes for the popular second home and tourist areas like Brittany, Normandy or Biarritz. If you’re looking to save money on your French property search, consider exploring lesser-known regions, mainly in central France and the eastern end of the Channel.
Village and countryside towns are typically more affordable in France. There is also a huge supply of homes in need of renovation, in cities, town and the countryside. You can buy for as little as €40,000, but it’s essential to either have deep reserves to pay for builders or to be very confident that you have those skills yourself.
Negotiate smartly
Negotiation is key when it comes to property prices. French sellers almost always expect to haggle, so don’t hesitate to make a reasonable offer. For insight on local areas and property prices nearby, talk to your estate agent or do your own research. This French government website shows recent selling prices. This information could be used to your advantage.
Use your imagination
In the hustle and bustle of property viewings we don’t always get the opportunity to just stop, take a good look around and think, “what would I do with this space?” When you do that, a cheaper and apparently substandard property can suddenly take on a whole new complexion. Upgrading kitchens and bathrooms can significantly enhance a property without breaking the bank. Consider energy-efficient upgrades too, as they not only save you money in running costs but also improve the property’s diagnostic tests.
Minimise taxes and fees
French property transactions involve various taxes and fees, including notaire fees, agency fees, registration taxes and land transfer taxes. Consult a tax specialist to understand the costs of buying in France and explore legal ways to keep payments to a minimum. After all, you must pay tax, but you don’t have to leave a tip!
It’s also worth speaking to an independent French lawyer if you plan to let out your property in France, be that a holiday home you let out partially or a gite on your property. If doing so, you’ll likely have additional liabilities when it comes to taxes and declaration. Anticipating these charges can help you avoid unforeseen fees down the line that may come at an inopportune time.
Save on currency transfers
One way international buyers could save money is by managing their exposure to the currency markets. The markets and respective currencies move every second of every day and can be extremely volatile. They are impacted by daily economic events and data releases, political news, world events, and global trading.
The time your budget is the most volatile is between making an offer and the completion date, which often equates to a two-to-three-month period. In that time, the exchange rate for your home currency to euro will continue to fluctuate without proper risk management. This means the price you’ve agreed to pay in euros could end up costing considerably more or less, by the time you come to complete.
To protect your budget from unforeseen market movements, we recommend you speak to a foreign exchange service that specialises in international property transfers. They offer a range of services that your high-street bank can’t and they can often be tailored to your needs.
The most common tool for property buyers in France is the forward contract, a legal contract that enables you to “lock in” an agreed-upon exchange rate for a certain amount of time, so you know exactly what you’re paying. It’s true that the currency rate could move in your favour, but is it worth the gamble?
