How to Know if a French Property Is Right for You Before You Buy
How can I know whether a French property is truly right for me before I commit to buying it?
TOM EASDOWN of French Plans responds (frenchplans.com): It’s easy to get drawn into the dream of owning a French property – the listings and photos create an image of the life you could lead – but before you fall head over heels for the property on paper, it’s a good idea to analyse whether it offers the opportunity for you to live that life in five or 10 years’ time.
First, identify the purpose of the purchase: a permanent move, a holiday home, investment opportunity or business venture?
If a permanent move, does the property need urgent work? Is it in a good location that works both the day you move in but also in 10 years’ time? If a holiday home, is it easy to get to and offer an opportunity for holiday rentals? Do the potential yields work on a long-term basis, and does the building offer easy and safe access to the public?
The technical side of a property review is relatively straightforward; the diagnostic reports give a great baseline of information, and a structural survey provides that additional level of clarity. The crucial part is balancing that information with your future plans for the property, your budget for the purchase, and your appetite for development or renovation.
Understanding the costs associated with property issues identified in a structural survey allows for accurate budgeting when added to the costs of renovation, extension or development works.
Understanding how a building works now, and what needs to happen to it to enable the lifestyle you want, provides a more accurate idea of the budget to be established before FUTURE PROJECTIONS commitment. The perfect property on paper might end up being less than ideal if the orientation is wrong or the layout doesn’t actually match the way you live.
So many people embark on a renovation project without a clear plan of the end result or a definite idea of the likely costs. Most renovation projects don’t fail because the building can’t be developed – they fail because the budget doesn’t align with the aspiration.
We work with our clients not just on the design of buildings but also their long-term aims, and balance that with the property that is put in front of us. We ask hard questions about the actual budget available, the appetite for heavy renovation or development, or the financial targets for both investment and commercial projects. Without a clear ambition for the long-term enjoyment of a property, it is difficult to establish a plan of action and to determine if a property is going to work for our clients not just today but in five, 10 or 15 years’ time.
The right property isn’t necessarily the one that instantly captures the imagination but the one that can realistically support the way you want to live within the budget and timeframe you are prepared to commit to.
Taking the time to examine that balance before you commit can be the difference between enjoying your dream lifestyle and living in a compromise.
Ups & Downs
Mar Bonnin-Palmer on avoiding unpredictable exchange rate fluctuations
We’re purchasing a home in Provence for €380,000, but our funds are in pounds. Completion is three months away and we’re anxious about the exchange rate changing. How can we protect ourselves?
You’re absolutely right to think ahead. The GBP-EUR exchange rate can shift markedly in just a few weeks, and even a small movement has a big impact on property budgets. For example, a shift from 1.18 to 1.14 would add more than £8,000 to a €380,000 purchase. A popular way to mitigate this uncertainty is by using a forward contract. This allows you to obtain today’s exchange rate and settle the payment at a future date – such as your completion day. In practical terms, this locks in the sterling cost of your French home and shields you from unfavourable market swings.
The good news is that you don’t need the full amount upfront. Typically, only 5-10% is required as a deposit on the contract, with the remainder payable when the purchase completes. You can secure the full amount now or just a portion if you prefer to keep some flexibility. Either way, using a forward contract allows for budget certainty for your purchase as you won’t be derailed by currency volatility.
We’re taking out a euro mortgage for a house in Dordogne, but all our earnings are in the UK. We’ll be making payments every month – how do we avoid unpredictable exchange rate fluctuations?
Relying on the live exchange rate every month can make long-term budgeting extremely difficult. If the pound weakens suddenly, your euro mortgage payments can jump with no warning – and over a 15 or 20-year term, this really adds up.
A regular payment plan (RPP) is a simple and effective solution for managing ongoing euro commitments. With an RPP you can automate your transfers at whatever frequency suits your mortgage schedule and choose how you want your rate managed:
- Fix the exchange rate for up to a year’s worth of payments
- Use the live market rate for maximum flexibility
- Blend both strategies, securing part of your exposure while leaving room to benefit if rates improve
This is a reliable way to make your mortgage payments predictable, and many homeowners also use RPPs for property taxes (taxe foncière, taxe d’habitation), utilities and building fees.
“How can you protect yourself from rate movements between signing the first property purchase contract and completion?”
We’re buying a new-build apartment in Montpellier with staged payments over 18 months. Our funds are in GBP, but the developer’s schedule is rigid. How do we protect ourselves from rate movements throughout the build?
Off -plan purchases in France typically involve several payment milestones tied to construction progress. Each stage is exposed to GBP/EUR fluctuations – meaning a weaker pound partway through the build could significantly increase your overall cost. Forward contracts are also designed precisely for this scenario. It allows you to:
- Lock in one fixed exchange rate for the full value of your staged payments aligning with the payment schedule
- Draw down euros in instalments that match the developer’s timetable
- Have certainty of your entire construction budget for the full duration of the build.
This combination of certainty and flexibility ensures you’re never forced to convert funds at a poor rate or rush last minute transfers to meet a builder’s deadline.
For optional expenses – such as upgrades, custom fittings or furnishing allowances – some buyers also use market orders to target favourable rates.
Note that some of these strategies aren’t always available via high street banks. Many buyers instead work with a specialist foreign exchange provider who offers more tailored tools for international property purchases.
Mar Bonnin Palmer is Head of Partnerships at [email protected]
