Avoid mistakes. Understand how the French real estate buying process works with ESREA France
French real estate is getting greener.
One of our readers just sent us this article that shows the news that the French government is pushing the construction of new commercial business buildings to a new Greener level has reached all the way to Australia.
We love seeing French real estate go green.
Paris Property Prices on the Rise Again
Notaries of France, particularly Notaries in Paris have noticed an increase in the number of transactions in the capital since June. This activity has lead to a slight increase in the average price per m2 in Paris so it has now passed the 8000 euros per m2 once again.
However, the Notaries of Paris believe this will decrease again by year end.
Learn more about price changes in the French capital by reading this article.
If you are looking for some insider information on investment it is best as always to look to the experts.
Enter Billionaire Investor Warren Buffett
Warren Buffett has invested in real estate and his approach to his own personal real estate investments can be applied by people like you and me in the French real estate market.
Let us take a look at Warren’s approach to his personal Real estate investments.
Note: The original tips were shared by Warren Buffett in his annual Berkshire Hathaway report in 2014.
Format of article: The title of each tip is a paraphrase of Warren’s guideline and beneath the title is our suggestion as to how you can apply the tip in French real estate.
One
Invest in Real Estate when it is Undervalued
Often people don’t see the fact that French property values have dropped in areas where real estate pricing is typically strong and they wait till the prices start rising to buy. Then of course, it is late, not too late but they have missed an opportunity to save money on a purchase. As Warren says “buy when most people are selling”.
Two
Focus on Income or Savings Not Appreciation
When you are buying French real estate and you will not personally use it, then you need to calculate the income of the property compared to the purchase price. If the current income is positive and will increase in the near future or you can increase the income of the property through renovations etc then you are onto a good purchase
If you are renting right now your personal residence and you will live in the French property after purchase you need to calculate the financial savings you will gain from buying and not renting.
Warren’s caution: If appreciation happens great but don’t use this as the basis of your purchase.
Three
Focus on Properties that are Underused
If you can see the diamond in the details you will make better real estate investments in France.
Can you buy a particular French property and make inexpensive physical changes that will create an extra bedroom or even a separate apartment you can rent out? This can lead to extra income now or when you need it thereby enhancing the value of your purchase.
Four
Increase your Expertise with the help of Others
The French real estate industry is complicated and you will get lots of opinions on how things work. It is very important that if you are buying or planning to buy real estate in France you know ahead of time the problems and challenges you need to avoid. These are often details only seasoned investors and seasoned real estate agents know about.
Warren Buffett is famous for making sure he has experts running his companies.
You need to be in contact with experts when you are buying French real estate. For example, do you know why the French property diagnostic reports are insufficient information to make a quality property buying decision? If not, you need to consult with an expert.
Learn quickly and save time by experiencing one of our money back guaranteed private consultations by phone or skype or ask to participate in a webinar with friends. Learn more here.
Five
Create a Team before you buy.
If you are going to buy a French home to renovate make sure you have reliable workers to do the work you need and get estimates ahead of your purchase. Otherwise your original savings may be lost during the renovations. In addition, if you need property management make sure you find a person you can trust before you buy.
Warren Buffett is famous for surrounding himself by a team of people he says are much smarter than him in many areas. He always makes sure this team is in place before investing.
Six
Think and act long term and not short term
Speculators are looking to get their money out of real estate almost as fast as they put it in. Your goal needs to be to buy and hold the French property and build financial wealth over time.
Over time you will benefit from the income, your reduction in rental costs, perhaps an increase in property value and you will not be hit by the high French capital gains tax when you sell. As Warren Buffett will tell you ‘the idea is to buy and never sell”.
Here is recommended reading on Warren Buffett
Dating back to the 11th century, Bergerac is one of the Aquitaine’s liveliest and most historic towns.
Set on the banks of the river Dordogne, Bergerac is at the heart of the local wine trade and welcomes tens of thousands of visitors every year.
Tourists love to stroll through the medieval backstreets, enjoying a leisurely coffee or browsing in one of the many boutiques. You can also take a trip down the river in an old ‘Gabare’ (goods’ barge) and there are two local museums to explore.
The region of Bergerac is famous for its vineyards, many of which are pleased to offer wine-tasting and tours. Domaine de Beauregard makes superb organic wines; please pop in and sample their lush Rosé and Merlot Reds:
Bergerac airport currently has regular flights to the UK, via Ryanair, FlyBe and Jet2 to Birmingham, Bristol, East Midlands, Leeds and London Stansted.
Contact Peter Elias an English speaking French agent in Bergerac
With the US Dollar strong at this moment Americans are returning to France to invest in French real estate.
However, the French real estate market is a complicated system and non-locals and even locals can make mistakes when buying.
We offer you below reminders of 3 mistakes we often find American buyers making, in fact, many French property buyers make these mistakes when they invest in French real estate.
Mistake One
Relying only on the French Property Diagnostic reports to evaluate a property.
These reports can fail to discover defects like plumbing problems.
Mistake Two
Not checking if there is a reliable phone or internet connection.
To keep connected to friends back home in the USA it is nice to have access to internet and phone but not all the areas of France have a reliable phone or internet connection at this time. Make sure you test first before buying.
Mistake Three
Many International buyers come to France in the Summer season when in fact this is not the best time to get your best deal.
Winter time sellers are more desperate to sell and you are more likely to get a good deal on a French property when you shop out of season.
We are a network of English speaking French real estate agents who can help you find your ideal property in France. If you know the area you like contact us to reach an agent in that area.
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We also offer consultations over the phone and via skype so you can learn about all the mistakes to avoid (we know dozens) and how to approach buying French real estate in the smartest and least stressful way. Contact us for more details. In most cases we can phone you back at no charge.
We are here to help you.
