If you are considering buying a property in France as a home away from home, then you don't need us to tell you that it is a big decision that requires a lot of thought and planning. Of course, for many of us, it is the dream to have a home abroad that we can escape to throughout the year. Still, there are a few practicalities that you need to consider before diving into the decision.
Luckily, at France Tax Law, we are experts in all things French laws, and we also have a fair bit of experience and knowledge in France property laws. This is why we have put together a quick rundown of the deciding factors we think you need to know before buying a second property in France.
France is notorious for being filled with designer fashions, expensive wines and gourmet food, so it is certainly a lavish holiday destination. But how does this compare to lifestyle living?
Before buying a holiday home in France, you must be aware of the cost of living to ensure you can afford to live there comfortably. After all, you may be able to afford the property and related fees, but can you afford to regularly visit and live there?
According to Numbeo, a site that tracks the cost of living prices for various parts of the world, grocery prices are 23% higher in France than in the UK. In France, consumer prices (not including rent) are also 9% higher.
These are significant numbers you should factor into monthly spending budgets before making a move, as they may seem like smaller sums in relation to property costs, but they still have significant impacts.
Deciding how you will finance your second home in France is also an important consideration you need to be 100% sure of before purchasing. We can help you with guidance and advice to ensure you're making the right decision in line with your own best interests and the various related France laws.
To obtain a French mortgage, you must also take out a new life insurance policy in France and obtain French property insurance. It is important to note that buying property abroad is not as straightforward as buying a home in the UK, and so having all of these considerations ticked off before you begin the process will help you with a smoother transaction.
Finally, before purchasing a second property in France, make sure you have a backup plan or 'escape' strategy. As much as we dream of the idyllic happily ever after, where all of our hard work pays off, sometimes the reality can be quite different.
When you purchase a property abroad, make sure you have a realistic backup plan that you can fall back on if things don't quite go to plan or are not what you expected. For example, if the reality of the cost or quality of living is different than what you imagined.
Make sure that you factor in local market conditions to your exit plan, as the property you purchased may sit on the market for longer than you expected if you decide to sell.
So, do you feel clearer about your decision to buy a second property in France?
We hope our rundown has given you a few considerations to get you started in the long-term decision-making process. But we understand that you might still need a little more advice.
At France Tax Law, we are experts in France property law, and our friendly team can help you with advice and a guiding hand throughout your entire journey.
Contact our professional team today to find out how we can help you or learn more about our French legal services on offer.