Considering buying real estate property in France but
worried about the house-buying process? Here's how.
Parlez-vous property? Oui naturellement, but it isn't necessary for you, the
buyer, to. If you think a Notaire is some kind of space-suit fabric or you are
afraid of compromising your compromis de vente, don't worry - this will help.
Buying A Property In France - It Is Easier Than You Think by :
Cecil Jones
If you have been dreaming about buying an apartment or house in
France but have hesitated, thinking that it must be too difficult for a
foreigner, it is time to think again. The process of buying property in
France is a lot easier than most people believe. Here are a few basic
factors that you should consider if you are indeed interested in
acquiring real estate in France.
1. It is no harder to buy a property in France than in the USA
Despite popular images of a complicated Napoleonic legal code, modern
French property laws make it easy for anyone, even a foreigner, to buy
property. Thanks to the Notaire system, government regulation of closing
costs and the reliability of sales deeds, the process of buying property
in France can be less nerve-wracking than transactions in other
countries.
2. The Notaire System is a key factor in all French property
transactions
A Notaire is the French lawyer, trained specifically in French real
property law, who prepares the compromis de vente (purchase agreement)
and all other documents, including the final sales deed, relating to the
transfer of real property in France. Without exception, all buying and
selling of property in France must be done under the auspices of a
Notaire. The Notaire system is the main reason that real estate
transactions generally go so smoothly in France.
3. You don’t have to speak French to buy a property
France has changed a lot in the past thirty years. Gone are the days
when you would have trouble finding someone in France who would even say
a word to you in English. France has moved on from this parochial
attitude, and the change is especially visible in the field of real
estate.
A competent property acquisition company can provide bilingual staff to
help you with the purchase of a property in France. On the buyer's
behalf the company can also engage a Notaire who is fluent in English
and experienced with purchases made by overseas buyers.
Of course it is great to learn French to enhance your long-term
enjoyment of France, but you don’t have to do it immediately.
4. You need to open a bank account in France in order to buy property
To purchase a property you must have an account with a French bank,
optimally with a bank that can accept and convert currency from other
countries. The account should be a normal checking account so that you
can arrange for automatic withdrawals to pay recurring charges like
utility bills and mortgage payments.
It is not difficult to open a French bank account. The whole process
takes only a few minutes. The account may be opened by presenting proof
of identity (generally a passport will do), and signing a few documents,
including a signature card.
5. You can get a mortgage in France
If you require a mortgage you can get one from a French bank. A good
property acquisition company can suggest qualified lenders who are
accustomed to working with foreign buyers.
As French law requires life insurance on the loan so that the lender is
paid in case of the borrower's death, older buyers may have to meet
certain medical requirements and may have slightly higher payments.
Interest rates are currently around 4-4.5 percent on a fixed-rate loan.
This rate includes the cost of life insurance on the loan. For this
reason, buyers over the age of 60 will pay a slightly higher rate.
Down payments range from 10 to 50%, but if you are not a French citizen
the down payment will generally be at least 20%.
One strategy for financing the purchase of a property in France is to
take a second mortgage on a property in your own country and then use
the proceeds to pay for your property in France.
6. Property taxes and insurance are no higher than in the United
States or United Kingdom
Property taxes in France are generally lower - in some cases
considerably so - than those paid by property owners in the United
States.
By way of example, annual taxes (including property taxes and a local
inhabitant's tax) on a property valued at € 600,000 in Provence in the
département of Vaucluse are around 1,400 € annually. Taxes will vary
according to the local jurisdiction.
Similarly, insurance costs are also reasonable. Take, for example, the
cost of a homeowner's insurance policy on a 300 m2 (3,200 sq. ft.) house
in Provence with a pool and contents insured for 40,000 €. The annual
premium is around 800 €. The premium for an apartment of 100 m2 (1,075
sq. ft.) in the 7th arrondissement of Paris with contents insured for
25,000 € is 650 €.
So, don’t let preconceptions get in the way of acquiring your dream
property in France. Find a reliable bilingual property acquisition
company to help you, and start looking for the house or apartment that
is just right for you.
About the author
Cecil Jones is a Philadelphia attorney, businessman and dedicated
Francophile. He is the CEO of Just France Sales,
www.justfrancesales.com, a
United-States based company whose mission is to help people seeking to
buy a property in France and the South of France. Visit his website for
more information about buying real estate in France.
Source:
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