Is it better to Buy or Rent in France?

Have you ever wondered if it is better to buy or rent a property in France?

One of our readers sent us a link to a very interesting interactive page on a non French website that allows you to adjust numerous items to help you answer this question.

Note the tool is not in French but in English so that is why we are sharing it. There are versions in French that exist but they are a bit complicated for those of us who don’t know French so well.

Caution: we are not economists and we have not verified if all the calculations on the site in English even after adjustment will give you an exact answer but it is an interesting tool to get you to think about all the costs involved.

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New Study Reveals Eight Fold Pricing Difference in France

A new study by Orpi the French real estate network illustrates that the prices in France for the same type of property can be up to 8 times greater in a different part of France.

Based on the prices of properties sold throughout the Orpi network since the beginning of 2014 huge differences exist. Paris has an average property price of 8665 euros square meter price compared to Calais at 1186 euros per square meter.

Bernard Cadeau, president of Orpi network, stated in the reports (we translate) “the highest sale prices are on the French Riviera and in cities with strong economic activity like Toulouse and Lyon.”

The largest price drop has been in Bretagne. (Brittany).

Original article in French here

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Note: Details on our 110 Tip electronic French real estate buyer’s guide plus checklists is here.

France: What you need to know about buying a home in France – An Introduction

When you are considering to buy real estate in France there are many things you need to consider. Check out the following:

One
French Real Estate Prices are Not Rising at this time BUT
Even if French real estate property prices are not rising you need to consider the impact of a French property purchase and how it fits into your long term financial, legal and tax planning. Best get professional legal advice from a English speaking French tax lawyer. Do not rely on your French real estate agent to help you.  We can place you in contact with an English speaking French tax advisor or lawyer.  Contact us here

Two
Rent Property before you Buy in France
Visit the area in France you want to invest in several time before you invest. Maybe do a short term rental of a house like what you envision you want to buy and get a feel for what it may be like for you to live in the town. Go shopping, do cloth washing, act like the locals, work on the language. Learn what it is you are really looking for maybe you will be charmed or disappointed.

Three
To Live or To Rent
Is your French real estate investment for you to live in most of the year or just partially and rent out the rest of the year. Will it be easy to rent out? Different areas in each town may rent better or worse than others. Will you get any return on your investment? It is important to know the purpose of your purchase.

Four
Know Your Residential Status
Your country of origin and its relationship to France will impact how often you can stay in France and how easy it will be for you, if you want to become a resident. Seek advice so you know all the details before planning a purchase. You may be restricted on how often you can be in France

Five
Investigate your Medical Insurance and its validity in France
If you are not to become a French resident and therefore unable to participate in the local government sponsored medical insurance system you need to find out what medical insurance will cover you. You need to know its cost as well. It could be hundreds of dollars per month.

Six
Know your Taxes
If you are a foreign owner of French real estate you will most likely be taxable for the property. If you rent out the property as of the time of the writing of this article the rules are you will be taxed on the income. If the property you buy is expensive you may be hit by the French wealth tax and if you are a French resident you may be taxed on your global wealth. Make sure you know what you are going to encounter before you buy your dream French property. All we can say is get quality legal and tax advise.

Seven
French Inheritance or Estate Issues
In France the rules of inheritance at the current time need to be understood by you. You may think that if you die your spouse will inherit the property when in fact depending on your situation your children may / will automatic participate in the inheritance. Apparently, we have heard that in France the more children you have the less your spouse will inherit so may sure you know the structure of how your property is legally held in France right from day one of ownership

Eight
French Finance Considerations
Make sure you know how the way you are buying your French property benefits you financially and tax wise. Could you be able to offset taxes by buying with a mortgage? Will your mortgage be set up to pay in Euros or the currency of your home country?

These eight points are just an introduction. Do not use only them as a basis for an informed decision. Use them as a beginning point. We want to make sure you consider all your options before buying your dream property in France.

Note:
We can help you contact an English speaking French lawyer or mortgage broker.

We can help you save money on transferring money to France

Once your are settled on the general area or region you want to buy in France we can help you find an English speaking French agent  go to this page

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Note: Details on our 110 Tip electronic French real estate buyer’s guide plus checklists is here.

8 Tips on How to make a successful French property move in France

When you find your dream French property you will need to make a move. We are not experts in this field so we just have a few ideas to share with you we got from clients that can help you have a positive move to your new French home.

One
Make a List
Make a list of all the actions you need to take other than packing and moving items when you do your French property move.
This includes address changes, service changes etc.

Two
Decide on the Assistance you need
Depending on your budget and physical ability and time you may need to hire a professional French property mover to assist you.

Whether you use a professional or not you will need to do a lot of organizing to avoid mental stress and possible physical strain.

Questions to ask yourself include:
Do you want to do all the packing? Do you feel comfortable to have professional do the packing for you? Are your friends willing and able to help you? Will you be moving mid-week? Can you use vacation time for the move? How much of the move can you do yourself and how much will you dedicate to a professional mover, if any? Will you keep everything you have? Will you have a garage sale before the move?

Three
Choose a Real Professional Mover
If you want to and have the budget to choose to use a professional mover there are many companies who can help you move but make sure you find one that is part of an association of professional movers.

Ask for letters of reference with contact information for previous clients. We have heard stories about ‘movers’ who filled up the truck and disappeared never to be seen again. True, this is not a common experience but you always need to do your research. Start by asking friends for guidance.

Extra Tip: the name for  a moving company in french is entreprise de déménagement

Four
Ask for 3 Estimates
Make sure you get at least 3 estimates if possible so you can evaluate the cost. Ask about all the costs: insurance costs, storage costs if needed, etc. Read the small print. So you know you complete cost and coverage.

Five
Value your Items
Make sure you know the value of the items you are moving just in case there is an insurance issue due to loss or damage to items during the move. Take photographs, make a video, make lists, whatever you need to keep track of your items when you are using a professional mover. Perhaps use this type of tool to record items

Six
Invite the Moving Company for a Visit
It can be very valuable to have the moving company visit the property they will take the items from and the property they will bring the items to so problems of access and movement can be assessed ahead of time.

If a visit is not possible make a video or take photographs to show the moving company potential problems. Ask them how they will deal with these issues? Will there be any extra cost?

Seven
Plan ahead
Make sure you plan ahead for the move and know exactly how you will be working with the moving company. How much of the packing do you do? Is there a certain way items needed to be packed to be moved by the professional movers?

Eight
Right after the Move
Make sure you inspect all your items after the professional move and notify the moving company right away of any problems.

This is simply an introduction to the idea of how to make a successful move. We are not experts in the field so seek expert advise.

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Note: Details on our 110 Tip electronic French real estate buyer’s guide plus checklists is here.

Paris Real estate and 13 other Desirable Cities in Europe with Price Comparison

Real estate in Paris is naturally among the top 14 towns sought for purchases by UHNWI at the present moment in time (2014) according to a study by Knight Frank.

The prices of French real estate in Paris are in fact very attractive in terms of being less expensive compared to places like Monaco and London.

Besides Paris the other members of the Top 14 club are Geneva, Monaco, London, Zurich, Moscow, Venice, Rome, Munich, Vienna, Florence, Dublin, Madrid et Barcelona.

According to the study by Knight Frank  it is Dublin and Madrid where the prices have increased the most since last year.

For your information UHNWI means Ultra High Net Worth Individuals and there are families with a combined net worth of more than 30 million dollars.

BONUS: according to the study if you have one million euros you could buy a certain amount of space in each of the cities in the top 14:

20 m2 in Monaco

33 m2 in London

47 m2 in Geneva

56 m2 in Paris

58 m2 in Zurich

59 m2 in Moscow

74 m2 in Venice

83 m2 in Rome

87 m2 in Munich

95 m2 in Vienna

111 m2 in Fllorence

143 m2 in Dublin

166 m2 in Madrid or Barcelona

Below you can get your free introduction ebook about French real estate mistakes to avoid

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Note: Details on our 110 Tip electronic French real estate buyer’s guide plus checklists is here.