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Is it still a good idea to buy in Paris given the pound's current performance against the euro?

Yes, if you're looking for a buy-to-let property. By opting for a euro mortgage in France, your euro mortgage repayments may well be covered by your euro rental income - with no currency fluctuations to worry about. Moreover, France generally has lower interest rates than the UK and fixed mortgages over the whole term are standard, so you can really plan ahead. And property price growth in Paris (around 10% per annum for the past seven years) means that investors are likely to obtain a healthy return if they decide to sell their property later on.

When buying a property in France what costs will I have to pay over and above the purchase price?

If the property has been sold by an estate agent, the agent's fees (usually between 3% and 5% of the purchase price) are charged to the seller. The buyer has to pay the notary's fees, which are fixed by law and therefore not negotiable. These fees depend on the type and price of the property and usually correspond to 7-8 % of the purchase price. This percentage includes basic notary's fees, taxes and land registry fees (stamp duty).

What are the costs of owning a property in France?

Property owners in France have to pay two types of annual tax: "taxe foncière" for the ownership of the property and "taxe d'habitation" for the occupation of the property. The owner also has to pay a service charge, which is billed quarterly. If an owner earns income by renting their property, they also have to pay "impots sur le revenu" (income tax) in France. The system used to calculate the tax due is quite complex and there are various deductible allowances, but it usually amounts to around 15%-20% of the rental income.

How does the buying process work in France?

When a suitable property has been found, the potential buyer contacts the estate agent or the owner and makes an offer. If the seller and buyer agree on the purchase price, an offer to buy is made. It is usually in the form of a written letter, stating that the buyer wishes to acquire the stated property for a stated price. Signature of an initial "compromis de vente" (sale agreement) is then organised by a "notaire" (notary). In order to draw up the contract, the notary requires the details of the buyer (full name, address, occupation, nationality, date of birth, marital status.) and information regarding any mortgage financing that is to be used to buy the property. A deposit corresponding to approximately 10% of the purchase price of the property is then transferred by the buyer to the notaire's account. The date of signature of the final sale agreement is then set, usually around 60 days after the preliminary contract.

Are there any risks after the signature of the initial sale agreement?

The initial sale agreement is a legally-binding contract for both buyer and seller. However, French law is quite protective of the buyer, who is allowed a "cooling off" period of seven days following signature of the pre-contract. After this period, the buyer can still decide not to buy, but will consequently lose the deposit. The seller cannot change their mind. This system is designed to prevent gazumping.

As there are no surveys prior to the purchase of a property in France, what are the risks for the buyer?

Very low. The seller has to provide a certificate stating the exact surface of the property, a report of the status of the property regarding termites and other wood-boring insects, asbestos and lead. The notary also carries out certain checks, such as the absence of right of pre-emption, the existence of a planning certificate and a zoning of the area. If the property is within a communal block, it is advisable for the buyer to request the minutes from the last general meeting of the building, so that they can check for any potential problems with the property as a whole.

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