French Property New Year’s Resolutions

As the festivities begin and we put 2023 behind us, it’s time to start those all-important New Year’s resolutions for next year.

And if you are reading this, buying your French property or making that long-awaited move to France will probably sit firmly at the top of that resolution list.

We can’t help you with all your resolutions, but we have a couple of pointers to help you make your dream of owning a property in France a reality in 2024 – which should also put you well on your way to learning some French!

Firstly, it’s important to note that fulfilling your French dream will require more than one item on a to-do list. So, let’s deep dive into what you’ll need to do to make it happen.

Getting Started

Before you start your search, you should get familiar with all aspects of buying a property abroad – from travelling to view your future home and how to pay off your mortgage to the foreign exchange requirements at the heart of every payment.

That’s where we come in. Moneycorp’s expertise can provide complete insight into each step of the process that requires the movement of money and help formulate a structured plan for you during your purchase – and cover all your needs afterwards.

Step 1: Budgeting

Buying overseas is more complex than buying in your own country because of the added element of currency exchange. When you calculate your property purchase budget, you must also factor in the exchange rate from the currency you hold to euros. However, it’s important to remember that the currency market is constantly moving and can be highly volatile – and because you’re looking at such a significant amount of money, even minor fluctuations in exchange rates can considerably affect your budget.

It is a good idea to be aware of the exchange rate at different stages of your property search and certainly from when you pay your Deposit at the latest.

Step 2: Planning your purchase.

Checklist:

• Compris de vente – also known as the Deposit
• Taxes and fees
• Property completion

Agreeing a Price

Once you have found the property, this is the first point at which you will need to know the exact property price. As soon as you have the agreed price, you’ll need to know the cost you in your home currency. At this stage its helpful to be in regular contact with a market specialist who will help you understand the current market and all the options available when making your purchase.

Paying the Deposit

Once you have agreed the purchase price, you will be required to pay your Deposit to secure the property. This is the first official stage of getting your dream home in France.

At this point, you should start considering your foreign exchange options for paying for the rest of the property. A range of currency tools are available and can either fix the exchange rate to give you certainty over your final price or, if you are more optimistic about the market, wait and see if the exchange rate improves.

Knowing your options

For those who are looking for certainty, the best option might be to lock the exchange rate ahead of your payment via a forward contract*. This tool can be helpful for those with a fixed budget because it allows you to secure an exchange rate for up to two years, giving you certainty over your outgoings. It usually require only a 10% deposit, so it can also be an attractive tool if you don’t have the total funds available yet.

For those who have a bit more flexibility in their budget and are open to more risk, a market order can help you target a rate and buy your euros automatically – potentially maximising your budget.

Step 3: Making the payment

Completion Day

At this point, buyers who have taken advantage of the options a currency specialist provides will be well-equipped for the final handover. With the funds in place, your property purchase can be made easily.

Those who have not utilised these tools could find themselves in a more difficult position if they find the exchange rate has moved negatively since they paid their deposit. This can mean the property becomes more expensive than previously expected.

Step 4: Maintenance

Your foreign exchange requirement doesn’t just stop once you’ve completed your purchase. Here are some of the things you will need to consider once you’re a proud owner of a property in France:

• Running costs
• Renovations
• Mortgage payments
• Repatriation of rental fees if you were to let your home out as a holiday home
• Management fees for renting out when you are not there
• Paying bills

Many of these situations will require the regular transfer of funds. One option you can explore is using a Regular Payment Plan to help you organise your finances. You can also consider fixing the exchange rate for up to two years to give you certainty over the money you’re moving around.

Step 5: Enjoy

Let us take care of the payments while you get on with enjoying your new home!