Do you have any tips about buying a run-down property requiring renovation in France?

Question

They're dead cheap if you look. Anything from 20,000 euros upwards with land.

I'm in a good position whereby I can run my business from any country, so quite fancy taking on a project of renovation a property in France whilst continuing to run my business at the same time.

Have you done this? Any tips?

Thank you.

Answer 1

The problem is to find the good agency in the right location, and listen to skilled people - mainly hand-workers

    The operation will not be difficult in its administrative part, but rather considered your dreaming consideration of the reality -  THE PROBLEM RELIES ON YOUR 20.000€ - Add one zero and then maybe you'll find - otherwise bye bye - prices did not go up because of us but because of your compatriots -

     Amen

Answer 2

The only thing I would caution you about is that the regulations concerning this sort of thing are complex and difficult. The process requires multiple permissions from various different government bodies all of which are renowned for being pettifogging, nitpicking, officious, arrogant and unhelpful.

EDIT: We can see here the difference in mindsets between people who are used to the European way of doing things and the American.  

A few years ago I built a two story building as guest quarters on my ranch. I required no one's permission to build, no permits, no inspections, paid no fees, dealt with no bureaucrats or planners, nor any regulations or laws.

Certainly not every place in the USA is like that and in most cities there are various rules but in rural America government generally leaves you alone.

Most Americans think being left alone by government is or ought to be the norm while most Europeans think that getting only two or three permits and having to hire only one lawyer to get permission from some government hack to fix up your own house is reasonable.

That's why, in the final analysis, despite the fact that I love France, I live in the USA. It not in my nature to bow down to anyone let alone some  government bureaucrat.

Answer 3

The others have given you good advice, and I agree with the writer who said costs can be deceptive.  If it's cheap, it probably requires lots of work.  

Another thing you need to know in France is that it is a "buyer's beware" real estate market.  They don't use disclosure statements, so be very sure you get an architect or engineer to help you determine whether or not your project is feasible, the building is structurally sound, etc. and whether you can get planning permission to do whatever it is you want to do.  Read ChocoBN's advice carefully.

I once made an offer on a property but put a "subject to" financing in the offer. In France there are not building inspectors or appraisers in the same way North America has.  

I hired an architect to determine whether the building was sound to renovate.  She determined that it was not, and wrote a report stating why.  That cost me about E 125 and was well worth the cost.  I was able to back out of the deal because the bank would not finance.

Bonne chance!

Answer 4

As stephane said, the administrative part is generally easy. If the renovation project does not alter the size of the living area, you don't need a construction permit, but you need to inform the town administration (déclaration préalable).

If you are extending the surface area, then you need a permit:

- First you ask the town hall to deliver you a "certificat d'urbanisme" which tells you if that specific plot allows construction or not (for renovation projects of existing homes it is normally not an issue). The seller should be able to give it to you when you are buying. You need to get all the information as to sewage, drainage, electrical supply, etc.

- If construction is allowed there, once you own the property you ask for an application form (from the town hall). You gather the documentation required (photos, floor plans, etc);

- finally, you submit your application for a construction permit (once again, from the town hall). It takes 2 months on average to process - during which neighbors can oppose your project if they feel it is damaging their property (they have to bring evidence). Rarely a problem in rural areas where there is a lot of space between properties but you might want to make sure you have a good relationship with the locals anyway and that they won't feel you are threatening their way of life.

[As someone else said, it is true that people may feel intruded in rural areas and resent the fact that foreigners buying property increases the prices for everyone. It's up to you to show you can bring them something. Brits and Dutch people used to buy property just as vacation homes or investments and were hated for it, especially when they made no effort to get acquainted with the local culture and traditions and didn't speak the language. Then a new generation started working off the land, making wine on vineyards that were getting abandoned, or bringing business to the area and these are much better accepted. So it's really up to you and what attitude you will have.

I know a young German couple who bought and renovated a farm in the Loire valley. They live in a village of 310 people, mostly old people and the locals love them because they made the effort to learn French and they are helpful: give old ladies a ride to the town for shopping, helped the local administration build and maintain a website, etc. Mind you, a lot of the villagers are old enough to have lived through the war and grew up resenting Germans. But this couple won them over by having the right attitude.]

Back to administration, on purchasing now: keep in mind that you will pay more than the price of the property itself. You will also incur some fees called "frais de notaire" including various taxes too. The rate varies depending on the type of property but can be 5 to 8% of the purchasing price. Foreigners may be subjected to higher taxes if the property is not their main residence (to protect locals from over inflating prices), so make sure you have French residency to have the same rights as French people.

If you got a construction permit, after work is completed you have 30 days to inform the town administration that you have completed the work. They will then make sure it conforms with what the permit allowed.

Rules are more complicated if you are working on a castle or registered historical building but I assume that's not what you are looking for. Otherwise it's pretty easy as you only deal with the town administration for all documents. However if it's a tiny village they may not have all the forms available and may refer you to the Direction départementale de l'équipement.

Now you still have to find good construction professionals. One thing is to make sure the company is "Qualibat certified" (or for electric work Qualifelec certified) and insured. They must have a "garantie décennale" (10-year warranty). You can ask advice from the Fédération française du Bâtiment : http://www.ffbatiment.fr/Federation/Fren...

In any case, some British companies specialize in helping foreigners acquire property in France. They cost you some money but they may save you some in  the end because they know the rules. Google them.

Definitely spend some time in the village where you are planning on buying to get a feel of how suspicious or helpful the local administration can be. You want your experience to be a pleasant one and not have to deal with too much opposition. Although once again their being welcoming will largely depend on your own attitude. Some are legitimately fed up with their villages being taken over by northern foreigners coming from cities with a different lifestyle. I don't know why two other respondents got a thumb down for pointing at possible difficulties, I think they are right to warn you about them. Although the administrative part is not as nightmarish as Rillifane made it out to be (construction laws in France are actually not that complicated), his description of the administration's unwillingness to help may apply in certain places. It's always best to be prepared for the worst but you should keep hope for the best. A lot of people do it successfully after all.

Another thing to consider is if you are establishing residence in France, will you still be employed by a foreign employer or will you be self-employed? This will affect how you pay taxes and whether you will have access to the French securité sociale (including health care).

EDIT: I just found this website which should cover all your questions and more: http://www.french-property.com/guides/fr...

Answer 5

I have not done this, but I have family living in France who have had quite some houses in France. I know houses are cheap in France, but if they're THAT cheap, you will most probably have lots and lots of renovations to do. Houses in Europe are much more expensive than in North America. I don't know if you're from the USA, but if you are you will face higher costs next to the purchase of the house.

Renovation will be expensive since you will have to exchange USD for EUR, and that's not exactly cheap right now. Next to that, gas is expensive in Europe, and everything will be more expensive if you're receiving your income in USD.

Another fact that I wouldn't underestimate, is the fact that a lot of French people are xenophobic. I know that there are many many great French people, but I also know that especially in smaller places, people don't like to be addressed in English, and sometimes don't like "intruders". If you like to have an active social life, I would make sure to speak French well before going there. I have seen this happen quite a few times before, not all French people are open to foreigner, and some seem to not like people from the USA at all.

Anyways, just my 0.02, I hope it helps :) You can also look into Belgium (where I personally think most people are more open), Austria, Italy or Spain. I think the house prices will be more or less the same.

Good luck! See the link below for some more things you have to think of when moving abroad.

Answer 6

One thing to add to Choco's very good explanation. Check that the house or building is not on the list of 'patrimoine', which means that it is registered as a heirlom of the country and has to be renovated following extremely strict rules. You need an architect, the approval of a special office etc... And it is extremely expensive. As France is an old country you find those special buildings everywhere, so check first.