France is among the hottest destinations for property investors. The place is known for its beauty and offers a diverse range of locations with different property types. France has something for everyone, whether you plan to buy an apartment in Paris or an extravagant villa in Cannes. If you are buying your first investment property in France, keep in mind that the buying process in France is strictly regulated. It doesn’t matter if you intend to buy a future home or want to relocate to the country.
Understanding the buying process will help you accomplish your dream of owning a property in France. The entire property buying process in France is quite different from other countries since there are a series of steps involved in the process. The whole procedure may require up to 3 months so a little bit of planning ahead of time can go a long way to make the process easy for you. Here are top 10 tips to buy your first investment property in France:
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Search the Right Property
Do some research to select the area you want to invest in. Once you have made a decision, will have to need to contact agents to make sure you scan the whole market to see the properties available in the area.
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Make an Offer
All offers for buying French property are made in writing. The written offer will then be presented to the owner to initiate a response. Make sure all offers include a clause indicating the offer is contigent on signing a legal agreement.
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Sign the Initial Contracts
When both the seller and the buyer agree on a price, the initial contract referred to as ‘Compromis de Vente’ has to be signed. It is a legally binding document detailing the property and sale.
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Observe the Cooling Off Period
There is a weeklong cooling off period after signing the initial contract. During this time, the buyer has the option of going back on the purchase without facing any penalties.
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Make the Deposit
You need to make a deposit of generally 5 to 10% on the property. Once the cooling off period is over, the buyer will forfeit this amount if he decides to pull out of the deal.
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The Conveyancing Process
The process has to be executed by a Notaire and takes about 3 months to complete.
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Visit The Property
Check the property to guarantee all elements of the property including fittings and fixtures are fine on the day of completion, or the day before.
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Make The Final Payment
On completion of the deal, you need to make the final payment to the Notaire and the ‘Acte de Vente’ or deed of sale and have the deal signed by both parties.
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If You Are Single…
If you an unmarried couple, it is important you buy on a joint basis to protect the interests of each party.
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Seek Assistance
Learn all about signing a sale and the purchase contract which will be prepared by an estate agent. Agents act on behalf of the vendor so make sure the contract is equitable. Moreover, you must only sign in the presence of a notary.
Final Thought.
Property is a great investment especially for cautious investors because it has two streams of income. Rental income and increase in the value of the property over time. Making money from Short term rental property has never been so easy and attractive. With the new wave of travellers seeking accommodation online, one can easily promote the property on websites like airbnb, booking.com, agoda.com and many more. And the owner does not have to pay any money upfront. Just a small commission from all the bookings.
