How to buy an apartment in France?

While the croissant is crunching in the mouth, the banknotes are crunching in the wallet. This is what a typical morning looks like for a real estate investor in France. If you have long been planning to earn money from rentals, but consider the Ukrainian market too small for you, it's time to step beyond its borders and conquer new horizons.

What is happening in the real estate market and why what is bad for the French is good for us.

While rental yield in France growing real estate prices as well as the solvency of citizens, falls. It would seem that a decrease in value should only benefit enterprising investors. It would be, if not for the overall situation in which the market currently finds itself. Over the past year, square meters have lost about 6-8% of their value, but prices still remain a good 10% higher than they were 5 years ago. This forces the French to choose more compact and therefore cheaper apartments, or to accept high rental rates. Of course, houses have suffered the most. Properties with 6 rooms or more have lost attractiveness over the year, and the number of their sales has dropped by 31%.

In order to support customers in some way, a decision was made to reduction of interest rates on a mortgage. But in reality, not so many real changes have been made in favor of investors. Access to credit programs is still very limited. And interest rates themselves do not always move in the intended direction. Because of this, the number of loans issued has decreased by 60% in 2 years.

Anyway, we are Ukrainians, not French, so what matters to us is the benefit that can be derived from the current situation. And for us, it is obvious - high profitability from rent. We suggest exploring the real estate market and grabbing a juicy piece.

What you need to know before buying real estate in France

It is worth starting with the fact that a foreigner can buy any real estate, be it residential or commercial, and in any region of the country, whether it be the very center or even the most forgotten countryside even by the French themselves. But even the status of a local landlord will not bring you closer to obtaining a residence permit. Only foreign investors who have spent more than 183 days out of 365 in France can count on a residence permit.

Before considering the advisability of obtaining a residence permit, you need to find the property you are heading to in France. For convenient search, you can use resources such as:

🌐 ParuVendu;

🌐 FNAIM;

🌐 Superimmo.com;

🌐 Logic-Immo.com;

🌐 Leboncoin.fr;

🌐 Seloger.com.

Or you can do much simpler and turn to a real estate agent, French or Ukrainian. Some real estate agencies in our country specialize in the French market, so this option will be the most convenient. If you decide to contact a representative of the country you plan to invest in directly, make sure that the realtor has a so-called "professional card" that gives him the right to provide services to non-residents of the country. You will also need to think about hiring a translator. Without knowledge of the French language, you may encounter difficulties in communication, so it is better to have the support of someone who will understand both you and your interlocutor on the other side of the state border.

Step-by-step instructions for investors

After you have thoroughly studied the market (or simply consulted with an expert who understands it much better) and selected an apartment to your liking, it's time to take decisive actions.

1. Open an account at a local bank.

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   Only in this way you will be able to make the payment.

2. Reserve the property.

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   It is necessary to sign a preliminary agreement with the seller (compromis de vente) or a unilateral agreement (promesse de vente), which is used much less frequently. Before signing it, the seller undertakes to provide the buyer with all technical documentation on the property for verification.

3. Give a deposit to the seller.

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   Its size is 10% of the value of the property. If you changed your mind about buying the apartment / asbestos inspection gave disappointing results / the bank refused to issue a loan, you have 10 days to return the deposit and terminate the contract (délai de rétractation), if no other conditions were specified in it.

4. Sign the main sales contract.

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   To do this, you need to contact a notary. The seller and buyer may have separate notaries, one of whom will verify the documentation, and the other will certify the contract and carry out the transactions. To conclude a contract, you need to have your passport and a copy of your visa or residence permit with you. Spouses must provide a marriage certificate or divorce certificate. In some cases, proof of income source may also be required.

5. Pay per square meter.

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   You should part with your savings even before signing the contract. The full amount is transferred to the notary in advance. After signing, it goes to the seller, and you receive the keys to the apartment and a certificate - the primary document of ownership rights.

6. Register the property right.

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   The notary must register you as the new owner no later than a few days after purchasing the property. Registration takes place at a special bureau (Conservation des hypothèques) and takes 2-3 months. After this, you will receive a property ownership certificate.

Remote real estate purchase

To go to France now? At the very least, the male population does not have such an opportunity... But being unable to travel as an investor does not prevent a profitable deal. There is a simplified procedure that allows you to purchase real estate remotely. To do this, you will need:

• Sign the preliminary contract and send it to France by express mail.
• To issue a power of attorney to your representative in France or simply to a notary.
• Translate the power of attorney from Ukrainian to French and affix an apostille on it.
• celebrate the purchase.

Similar remote transactions have gained special popularity even during the pandemic, so local notaries have thoroughly studied the procedure and are ready to help you at all stages.