Buying Guide Details

Buying Property in French cities

Overview

Buyers looking for property in the French cities are often looking for quite different qualities in their property than buyers in the countryside, in the mountains or on the coast.

City properties can be holiday homes but are often purchased as investments. Paris and Nice, for example, have a huge tourist trade looking for short-term accommodation. The likes of Strasbourg, Bordeaux and Marseille each have their own qualities which may appeal to a niche market of buyers, not least the buy-to-let investor who does not necessarily want to live in the city.

Commercial and academic centres have a year-round rental market and a desirable property with a long-term let (or series of short-term lets) can easily pay its way month to month. Where coastal resorts may have a limited season, a home in one of France’s many historical cities has appeal for the whole year.

In France, most overseas property buyers are attracted by the space, natural beauty and slower pace of life offered in rural and coastal locations. Its cities, though, offer a more dynamic lifestyle, diverse cultures and commercial opportunities, and, in Paris, a truly world-class city which, though expensive by French standards, is very competitively priced in comparison to London and New York.

The Process of Buying Property in the French Cities

• Once the buyer has found a property in the French cities and made an offer, both parties must sign a compromis; a legally binding agreement setting out all terms involved
• Financing will have to be sorted out by this stage as details regarding any loans must be clearly outlined in the compromis
• There is then a seven-day cooling-off period, which gives the buyer (but not the seller) the opportunity to back out of the deal without penalty. A 10% deposit is then required and the notaire then carries out all checks on the property (for clean title, wood rot, etc)
• Before the signing takes place, all funds must be transferred to the notary’s account. Failure to do this on time could mean the buyer loses both the property and the money
• If the buyer is not able to visit the property in the French cities before signing the final contract, a representative should do so on their behalf to make sure that everything is in order. The contract clearly states that the property is accepted in its condition on the day of sale
• Finally the acte de vente is signed in front of the notary, and the sale is complete.

Homes Overseas Property Club

Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.

The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.

For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com

Fees & Taxes

• Vary hugely depending on the region and type of property, but set aside 12 to 15% of the selling price
• Allow around 6 to 8% per cent for notaire’s fees. This includes stamp duty, which varies from 0.6% for a new-build to 6% for any property over five years old
• Agents’ fees vary greatly and can be anywhere from 4 to 15%. Around 7% is the most common amount, but check when looking in agent’s windows for the letters FAI after the price – this indicates that their fees are already included
• IVA (VAT) of 19.6% is applicable on most fees and taxes, but is avoided on leasebacks. The price of new-build properties usually includes 19.6% IVA, but always verify this from the start
• If a property in the French cities is sold on within two years,  capital gains tax is likely to be in excess of 33%
• Transfer tax varies greatly, but for properties over five years it tends to be around 7%.

There's also a range of articles for you to read about buying property in France:

• Buying ski property in France
• Entitlement to French Healthcare
• Buying a period property in France to convert
• The most popular places to buy property in France
• Buying a period property in France to convert
• Ski property in France - where's best to buy?
• City living - Paris

as well as overseas property news stories affecting the property market in France or view our range of property for sale in France.