Picturesque villages, charming countryside, cities brimming with culture – there are so many reasons why people dream of buying a property in France. However, whilst it is great to dream, it is important to be aware of the key considerations when purchasing your new French home. In this article, we will share with you our top tips.

Finding your dream home in France

The first step is to define your needs and to decide on your budget.

 When identifying your needs, it is necessary to understand what type of lifestyle you are looking for. If it is a permanent move, do you love the countryside – and are happy to live far from shops and facilities? Or you are more of a culture-vulture with a desire to live in a vibrant town or city, close to local amenities? Alternatively, if it is a holiday home, decide whether you are seeking a retreat along the coast or in the country, a village, town, or city. France is a large country, so it is critical that you think carefully about everyday life requirements.

Whether you are searching for a rural farmhouse, an impressive looking maison de maître,  a charming village house, a modern city apartment, or a coastal villa, France offers a diverse range of properties to suit various tastes and budgets. Estate agent websites and online portals will provide plenty of property ideas; the local Notaire offices are also worth visiting in the community you are planning to buy in.

What does it cost to buy a home in France?

Budget is also of course central to any project, so it is essential to understand what costs are involved before you buy. House prices in France have increased in recent years, though it is still possible to find the property you are looking for within your budget.

In addition to the property price, you need to budget for the following:

• Notary fees (frais de notaire) – For existing properties, expect around 7-8% of the purchase price, while for new builds, it’s about 2-3%.
• Estate agent fees: Typically between 3-8% of the sale price and generally included in the listed price. Check with the agent (agence immobilière) whether the advertised price includes their fees (commission comprise or C/C) or if it’s a net vendeur price, excluding fees.
• Potential survey costs
• Local taxes (taxe foncière and taxe d’habitation) – the homeowner pays these annually

The condition of the property is obviously a further factor. If you are looking for a ‘renovation project’ don’t forget to calculate the potential costs. Materials and labour may be higher than you are familiar with. Include a contingency, as budgets can easily stretch!

French mortgages – and how to switch providers

Before you borrow money, you need to understand how French mortgages work.

Securing a French mortgage typically involves providing proof of income and financial stability and generally requires a deposit of 10-20% of the property value, with loan terms commonly ranging from 15 to 30 years.

Since 2022, a new law has transformed mortgage loan insurance (assurance emprunteur) – called the Lemoine Law. This legislation allows borrowers to switch providers at any point during their loan, potentially leading to substantial savings compared to the initial offer.

Mortgage loan insurance

Mortgage loan insurance provides financial protection for both you and the lender in the event of unforeseen circumstances such as death, disability, or job loss. AXA Banque offers this solution, giving you peace of mind in the event that you are unable to work or experience other significant life changes.

A word or two about the legal process in France

You’ve found the perfect place, the budget is set and the money is ready to go… so let’s share a few words about the legal process.

In France, the Notaire oversees the conveyancing process. They undertake checks on the property and are responsible for drafting the legally binding documents. These include the Compromis de vente (when you exchange contracts) and the final Acte de vente – the property is yours and you can collect your keys!

Hopefully this short guide will help you find your dream home in France. If you wish to find out more about AXA Marthon’s insurance and banking services, please get in touch.

Insurance France is the trading name of AXA Marthon. We are an English and French speaking AXA agency, taking care of your insurance so you can enjoy your life in France.

To find out more, please contact us below for a free, no-obligation quotation:

Phone: +33 (0)5 45 70 43 76

Email: agence.florentmorin@axa.fr

Website: insurancefrance.fr