Buying a property in France – it’s easier than you think!

If you have been dreaming of buying a flat or a house in France but have hesitated, thinking that it must be too difficult for a foreigner, it is time for you to think again. The process of buying a property in France is much easier than most people think. Here are some basic factors to consider if you are really interested in acquiring real estate in France.

1. It is no more difficult to buy a property in France than it is in the US.

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 the sales deeds, the process of buying a property in France can be less stressful than transactions in other countries.

2. The Notaire system is a key factor in all French real estate transactions

A Notaire is the French lawyer, specifically trained in French real estate law, who prepares the commitment de vente (contract of sale) and all other documents, including the final deed of sale, related to the transfer of real estate in France. Without exception, all purchases and sales of property in France must be made under the auspices of a Notaire. The Notaire system is the main reason real estate transactions generally go smoothly in France.

3. It is not necessary to speak French to buy a property

France has changed a lot in the last thirty years. Gone are the days when you had a hard time finding someone in France who would even say a word to you in English. France has overcome this provincial attitude and the change is especially visible in the real estate sector.

A competent property acquisition company can provide bilingual staff to assist you with the purchase of a property in France. On behalf of the buyer, the company can also hire a Notaire who is fluent in English and has experience in purchases made by foreign buyers.

Of course, it’s great to learn French to enhance your long-term enjoyment of France, but you don’t have to do it right away.

4. You must open a bank account in France to buy a property.

To buy a property you must have an account in a French bank, optimally with a bank that can accept and convert currency from other countries. The account must be a regular checking account so that you can arrange automatic withdrawals to pay for recurring charges such as utility bills and mortgage payments.

It is not difficult to open a French bank account. The whole process takes just a few minutes. The account can be opened by presenting proof of identity (usually a passport is sufficient) and signing some documents, including a signature card.

5. You can get a mortgage in France

If you need a mortgage, you can get it from a French bank. A good home buying company can suggest qualified lenders who are used to working with foreign buyers.

Since French law requires life insurance on the loan for the lender to receive payment in the event 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 the life insurance on the loan. For this reason, buyers over the age of 60 will pay a slightly higher fee.

The initial payments range from 10 to 50%, but if you are not a French citizen, the initial payment will generally be at least 20%.

One strategy for financing a property purchase 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 the United Kingdom.

Property taxes in France are generally lower, in some cases considerably, than those paid by homeowners in the United States.

As an example, annual taxes (including property taxes and local resident tax) on a property valued at 600,000 euros in Provence, in the department of Vaucluse, are around 1,400 euros per year. Taxes will vary by local jurisdiction.

Similarly, the insurance costs are also reasonable. Take, for example, the cost of a homeowner’s insurance policy on a 300 m2 (3,200 square feet) house in Provence with a pool and insured contents for 40,000 EUR. The annual premium is around 800 EUR. The premium for a 100 m2 (1,075 sq. Ft.) Apartment in the 7th arrondissement of Paris with insured content for 25,000 EUR is 650 EUR.

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 right for you.