House prices in France
Buying a house in France requires a lot of research. Check house prices to estimate your budget first.
A holiday home in France - should you rent or buy?
French Property Guide
Is it worth renting a house in France?
There are quite a few advantages to renting. It's a low-commitment way of getting into the French market. You can rent short term furnished accommodation - the 3 year minimum letting doesn't apply to furnished property - or you could sign up a longer term rental if you want to have the property available all year. (You might consider a holiday let, but these generally can't be extended beyond the original term.) You won't need to arrange a mortgage, and if you find out you don't really want to live in France, you can walk away.
Even if you've done your work on identifying the right area or the right city, renting will give you the chance to get to know it much better before you make a purchase decision. One couple who moved to Paris for work rented in the 16th arrondissement before they realised they really wanted to live in the Marais - a completely different vibe. And not every Breton or Limousin village is the same - some are lovely, some are deadbeat. It can take a few months to work out which is which.
Renting for a while also lets you find out what the place is like when the tourists have gone home. Is winter bearable - or cold and miserable with no bars open and the nearest supermarket a 40 kilometre drive?
There are some practical benefits, too. Landlords are responsible for the maintenance of major equipment and of the fabric of the building - and for more, on furnished lets - which means you won't spend half your holiday trying to get the boiler replaced or the roof repaired. And if you have money in the bank, you can keep it invested elsewhere for higher returns.
French buying costs are also quite high, with the notary likely to swipe nearly 10% of your purchase price in fees and taxes (more if you've taken out a mortgage). If you want to re-sell within five years or so of buying, unless you're in a booming market, you'll almost certainly lose money on the deal.
Buying is an advantage for those who know what they want
Buying has its advantages, of course. If you have identified a property that you hope will make a good investment as well as a holiday home, you've got your money invested right from the outset. And if it's in the right area, you should be able to rent it out when you're not there, and get a good yield.
In 'hot' markets, too, waiting could cost you money - or even mean, if prices rise too far, you'll have to settle for a smaller or less well located property than you originally wanted. So it's probably better to take a week or so to tour the area extensively, and rely on asking the right questions to ensure you make the right decision, rather than renting for a while first.
And of course, if you've bought a place, it's up to you how you furnish it, and whether you make any changes - extending, renovating, or redecorating.
So how should you decide whether to rent or buy?
There are two big factors in making the decision. The first is how well you know France - and the French. If you've been coming to France every year since you were a child, and you speak French (perhaps not fluently but enough to order your morning coffee and croissant and read the headlines in the newspaper), you're in a better position to buy straight away than someone who doesn't know the country all that well.
The other big issue is simply where the property is located. If you're buying in a major city like Paris or Nice, in a good location, you'll be able to let the property out when you're not there, and you'll probably do well out of the investment. But if you want a little Breton penty (sea-captain's house) or a Limousin farm, be aware that the high season for lettings is only a couple of months, and the prospects of making money in the short term are rather low. Renting could be a smart move while you get to know the area and wait for exactly the right property to turn up.
Pros and cons of renting a house
| Pros | Cons |
|---|---|
| No obligations to pay for the house beside the rent | Sometimes a very expensive rent in high season |
| You can change the location easily throughout the year or even go to another country | Best options can be occupied |
| No need to deal with French bureaucracy | There is no guarantee you’ll rent what you want |
| No risks | Each visit to country will incur search for a place to stay |
| All renovations and repair are done by house owner, not by you | It’s a place where many people could have lived before you, and it might be not perfectly clean |
Pros and cons of buying a house
| Pros | Cons |
|---|---|
| You are investing! When well prepared, you can earn significantly | Due to stability of real estate market in France house prices are quite high (but not higher than in Germany) |
| You’ll have a place under the sun any time | You need to look after house (when you are there and especially when you are not) |
| After paying for the buying you’ll have quite moderate expenses | You will need to pay yearly taxes |
| You can rent it out and cover some expenses (even mortgage) | When selected in wrong location it cannot be changed on the fly |
| Real estate market in France is stable, so it’s a solid money investment (even in long term) | The house is sometimes a choice for a lifetime (at least for a long time), so it’s always a risk (when not prepared well) |
| It’s your house – no need to share it with anyone |