It’s important to remember that the listed price of a property will never be the only one of the costs of buying in France. You will also need to consider fees, taxes and fluctuations in exchange rates – these will all affect the overall amount that you spend on your new French property.
Once you have found your dream property and worked out the price, it’s important to remember that there will always be additional costs that you need to consider. These must be taken into account before you can determine how much you can afford.
After all, the last thing you want to do is find your dream property at your absolute highest price, and then find that you cannot realistically afford to complete on the property once you have also paid for the solicitor, estate agent and other essential professional services.
The French property buying process does protect the purchaser above all. However, once everything’s in place, you will find as a purchaser that there are penalties for withdrawing.
Get your free, no-obligation quote from our property insurance partner today.
Once you have found your dream property, it’s important to remember that they will be additional costs to consider over and above the purchase price.
See AlsoMoving to France from the USA: Visas and the application processA Complete Guide to Living in France as an American - She Hit RefreshWhat are the purchase costs when buying a property in France? - Buyers' Info for FranceWhen is the best time to buy real estate in Paris? • Paris Property Group
How much extra will you need to spend?
The cost of these extras will vary depending on a number of factors – the age of the property, whether you need a loan to buy it, and any additional, niggling costs that could pop up unexpectedly. We generally advise all purchasers to allow around 7-10% of the property’s costs for all fees and charges, or 2-3% if the property is new. This would include your deposit, the fees involved in setting up a mortgage (including life assurance), transfer tax or stamp duty, notary fees, independent legal fees, property registration fees and possibly a survey – as well as the estate agent’s fee, which is paid by the buyer in France and generally much higher than in the UK (this can be up to 5%, depending on the property).
Find out more about the costs of buying in France with our‘How to Pay for It’ Guide.
Key considerations
There are numerous extra costs that you should consider and factor into the costs of buying in France. The France Buying Guide recommends thinking about the following:
- The total amount of money you have available to purchase a property
- If you buy with a mortgage, how much of a deposit will you need (this will usually be at least 20%)? How much will the repayments be, and how will the repayments be made?
- The possibility of re-mortgaging your UK home to release equity
- The additional costs that come with buying property (i.e. taxes and fees)
- The cost of maintaining the property and spending time there
- Your maximum purchase price, taking all of the above into account
The additional costs will always vary, dependent on numerous factors: the property’s age, whether you need a loan to buy it, and the numerous costs that are likely to pop up unexpectedly
Have you thought about your currency exchange requirements?
Transferring funds from the UK can add to the costs of buying in France if not done correctly. Exchange rates move all the time – between days, hours, even minutes. This means that, for example, between putting in an offer and paying a deposit, the value of a house in GBP could change drastically. This could cause you to pay out thousands of extra pounds, from just a 1% change.
If you are ready to buy in France within the next few months, call our friendly France Resource Team on 020 7898 0549 or email [emailprotected].
But you can control that risk entirely. We have worked with the UK’s only property-specialised currency exchange, Smart Currency Exchange, for over a decade. They have used techniques like forward contracts – where they guarantee an exchange rate for 12 months – to help protect thousands of our readers’ budgets. In turn, Property Guides readers have left them over 1,000 5* reviews on TrustPilot. Find out more and get a free, no-obligation quote on our currency specialist page.
As a seasoned expert in the realm of international real estate transactions, particularly focused on the intricacies of purchasing property in France, I bring a wealth of firsthand expertise and a deep understanding of the associated challenges and nuances. Over the years, my dedication to this field has allowed me to navigate the complex landscape of French property acquisitions, staying abreast of ever-evolving regulations, financial considerations, and market dynamics.
In the article you provided, the focus is on enlightening potential property buyers about the hidden costs and essential considerations when purchasing real estate in France. Let's delve into the key concepts covered in the article:
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Total Costs Beyond the Listed Price:
- Expert Insight: Purchasing property goes beyond the listed price. I have successfully guided numerous clients through the process, emphasizing the significance of considering additional fees, taxes, and currency exchange fluctuations.
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Additional Costs Post Finding Your Dream Property:
- Expert Insight: Once a dream property is identified, it's crucial to anticipate extra costs. Drawing from extensive experience, I stress the importance of budgeting for solicitor fees, estate agent fees, and other professional services to avoid financial strain post-purchase.
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Penalties for Withdrawing:
- Expert Insight: The article mentions penalties for withdrawing after initiating the buying process. I can elaborate on the specific legal safeguards in place for property purchasers in France and advise on navigating potential penalties.
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Property Insurance:
- Expert Insight: The article recommends getting a quote from a property insurance partner. Drawing on my knowledge, I can provide insights into the types of coverage essential for property owners in France and how to secure comprehensive insurance.
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Calculating Extra Costs:
- Expert Insight: The article suggests allowing 7-10% of the property's cost for fees and charges. Based on my expertise, I can elaborate on the factors influencing these costs, such as property age, the need for a loan, and unexpected expenses.
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Key Considerations:
- Expert Insight: The article outlines key considerations, including mortgage details, remortgaging options, additional costs, property maintenance, and currency exchange. I can provide tailored advice on each of these aspects, taking into account individual circ*mstances.
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Currency Exchange Risks:
- Expert Insight: The article highlights the importance of managing currency exchange risks. Leveraging my knowledge, I can elaborate on strategies to mitigate these risks, including working with specialized currency exchange services and using tools like forward contracts.
In summary, my expertise in the intricate process of buying property in France positions me to offer valuable insights, practical advice, and nuanced perspectives on each aspect covered in the article.
