Can I afford to buy my dream holiday home in France?

Whether the dream of purchasing a second home in France is a close reality or a distant aspiration, the looming question is always, “How much will it cost?” Although this question sounds straightforward, there are many factors to take into consideration, some more obvious than others.

The first thing to consider is location; from the snowy slopes of Rhone-Alpes to the sunny beaches of Provence, France has it all, and location plays a major factor in the price of your home. Next, choosing the home itself, which is arguably the most critical stage, involves choosing between Chalets, Bastides, Villas, and much more. Choosing a house in France within your budget can be lengthy, and we always recommend visiting in person first just to be sure.

So now you have identified your dream house and the upfront costs, you need to consider taxes, estate agency fees, travel expenses and much more, but if you are holding a different currency to Euros, it is hard to know exactly how much this will cost you.

With the exchange rates constantly fluctuating, tracking how much your expenses will cost you is hard. However, with the help of a foreign exchange specialist like Moneycorp, planning around your budget is easily achievable. Moneycorp works with property buyers from the early stages to help you get familiar with the rates and understand your options to protect or even maximise your budget. You will get access to competitive rates of exchange to minimise your costs and access currency tools to help you plan your transfers. For instance:

Market orders

These help you target an exchange rate. If that rate is then hit, you could either buy the funds automatically or Moneycorp will notify you and get your permission to buy. The same principle applies to Limit Orders, which help you protect your transaction if the rate falls below a certain level.

This combination of tools tends to suit those who have some time and are optimistic that the rate might improve within their time frame. One of the advantages of market orders is to ensure that the currency is bought at the desired level when it is reached, even if the market only touches that level very briefly.

Forward contracts*

This tool allows you to fix an exchange rate up to two years in the future before a payment. Forward contracts are very popular among property buyers as it allows you to fix the full price of the property ahead of completion, giving you peace of mind and certainty of the final price.

The guidance of a dedicated market specialist, combined with these tools and transparent exchange rates, can help you plan your budget and navigate the foreign exchange market with confidence.