But what do you need to think about before you embark on your property search?

The Connexion spoke to property experts to find out what potential movers should consider when looking to buy property in France.

Do your homework

Make sure you research France and its varied regions before you start house hunting, or better yet, take a trip to research possible locations.

“France is a huge country with massively varied countryside, architecture and climate. A holiday spent touring the part that you are drawn to is good research,” says Julie Savill, from estate agency Beaux Villages, which has local property experts across France.

“Take a map and start marking areas, towns or villages that you like. Narrow down your search area before you even start thinking about viewings!” she says.

How remote do you want to be?

Many people dream of moving to rural France and escaping the hustle and bustle of the city, but it is worth thinking carefully about just how rural you want to be and what the ramifications of a rural life could be.

“There are plenty of properties where you can be very rural, with no neighbours and a short or long drive to the nearest village. For some, this seems idyllic, however, you need to consider whether the novelty of seeing very few people and always having to drive to get your bread and provisions will wear off over a period of time,” says Natasha Alexander of Suzanne in France, a British-owned estate agency based in Normandy.

“We recommend you do some research into the nearest village and large town and decide how close you would like to be,” she says.

Create a wishlist

Writing down what you definitely want in your new house can be useful when it comes to starting your property search.

“How many bedrooms/bathrooms? Will you do renovation work or just decorating? Do you want the luxury (and the cost) of a pool? Would you be happiest in a village or do you want to be completely alone in the countryside?” says Ms Savill.

Also consider what kind of house you would ideally want to buy.

“Do you dream of a renovated farmhouse, a maison de maître, a pavilion style house – how do you wish to live? Is it preferable to live on one floor or do you require something that is a new-build where the energy efficiency is the best it can be,” says Ms Alexander.

And it is just as important to think about your red lines.

“Are neighbours an absolute no? What about modern properties?” says Ms Savill.

Research the French housing market

Get acquainted with France’s housing market, which could be very different from that in your home country.

“Researching the housing market is essential. Prices vary significantly depending on the region and may not be as cheap or expensive as expected, says Patrick Joseph from My French House, a UK-based company that helps house hunters find properties in France.

“Some buyers still harbour the dream of finding a chateau to renovate or a farm in Provence for the price of a terraced house in the UK, but this is usually unrealistic. The good news is that asking prices for resale properties have been reducing over the past few months as the national market cools,” he says.

Check transport links back to your home country

Those who plan to buy a second home or stay in their home country for part of the year should look into transport links.

“Have you looked at the various routes available and the costs involved in travelling back to your home country. Are there good links back? How long will it take?” says Ms Alexander.

“This may not be of great importance if you do not plan to do this regularly but if you are commuting between the two countries this may be a deciding factor as to where your house will be.”

Be realistic about your budget

It can be easy to ignore your budget when picturing yourself in that beautiful chateau, but it pays to be realistic.

“Consider currency exchange rates so you know just how much you have to work with,” says Ms Savill. “Estate agency fees are generally included in advertised prices and you will need to pay in the region of 8% notaire fees on top. This includes the equivalent of stamp duty/land registry in the UK.”

“Setting your budget is a fundamental step,” agrees Mr Joseph. “If you need financing, apply for a decision in principle from a French bank or broker as early as possible; the criteria for mortgages are very strict. If you need to sell a property elsewhere, try to coordinate the timing of listing your home with your visits to France,” he says.

Mr Joseph also recommends researching currency transfers and the buying process in France, for example, how exactly to make an offer and when to pay your deposit. “These will differ from your home country,” he says.

Beware of the land trap

It is not only your budget about which you should be realistic – while many people dream of buying a property with land – consider how much you will be able to look after.

“A lot of properties come with a lot of land. If this is to be a holiday home, think carefully about the work and cost of maintaining a big garden or even a field and woodland if you are only there occasionally,” says Ms Savill.

Natasha Alexander says Normandy, and its excellent value for money, is attractive to people who want to buy land, for example to run a business or have a smallholding.

“Consider how much land is too much. Don’t forget acres and acres need to be maintained and looked after. Do you want this burden, in particular, if you want a lock-and-leave holiday home?” she says.

Be prepared to change your mind

There is nothing wrong with changing your mind about what you want, says Julie Savill.

“Be prepared to change your mind once you start viewing. That cute old stone property might just feel very dark once you get inside and a complete lack of neighbours could turn out to leave you more isolated than you anticipated,” she says.

And be willing to see a few wild cards.

“Sometimes really good properties don’t come over so well in photographs. Be prepared to go and see a couple of places that challenge your wishlist,” Ms Savill says.

Check out the local schools

If you are moving with young children, make sure to research the local schools before deciding on a house.

“Do you have easy access to the local primary school? While it may seem very quaint and again idyllic to live in the countryside when the children are very young. Have you considered when they become older and wish to play with friends after school?” says Ms Alexander.

“A little planning ahead could mean that you are not spending a lot of time taxiing your children to and from various sports clubs and the school itself.”

Consider healthcare options

It is important to think about healthcare options, whether you are planning to stay in France into old age or perhaps have a current healthcare condition that will need regular attention once you move.

“None of us like to think of getting older or sick, but consider your local clinic for services and the closest hospital. How long will the journey be if you need regular treatment?” says Ms Alexander.

Check the Internet connection

Something that could easily slip your mind is checking the local internet speed of the house you are looking at.

“While many areas have fibre now you will need to check the speed of the internet connection, in particular, if you use the internet for your work,” says Ms Alexander.

Find an agent

A good agent can help you navigate the process of buying in France.

“Buying privately is absolutely possible if you feel informed and confident enough to deal with a negotiation and contracts, which will all be in French,” says Ms Savill.

“An agent will have excellent local knowledge and a great awareness of the correct pricing for your local area. Speak to a few people and find someone you connect with,” she says.

Source: The Connexion

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That’s also the bad news, costing them thousands more in real estate taxes and leaving less for discretionary spending.

“To pay the higher property taxes, it just means we’ve got to take more money out of our investments when it comes time to hit those big bills,” Beverly McAdam said.

She backs a Colorado ballot proposal that could cap the growth of property tax revenue. It’s one of several measures in states this year to limit, cut or offset escalating property taxes in response to complaints.

Over the past five years, single-family home prices have risen about 54% nationally, according to S&P Dow Jones Indices.

That means higher tax bills for homeowners when governments don’t offset higher real estate values by reducing tax rates. And with offices seeing higher vacancies as people still work from home after the coronavirus pandemic, some commercial property values are declining, putting even more pressure on residential properties to deliver revenues.

“With assessed values skyrocketing over the past few years,” said Jared Walczak, vice president of state projects at the nonprofit Tax Foundation, “homeowners are clamoring for relief, and state policymakers are increasingly exploring ways to provide it.”

Colorado, like Alabama and Wyoming, also has a new law that will limit the growth in tax-assessed values for homeowners. Property tax relief will be part of a special legislative session beginning June 18 in Kansas, while Nebraska also could hold a special session to cut property taxes.

Georgia voters will decide in November whether to authorize a new law limiting increases in assessed home values for tax purposes to the rate of inflation, unless local governments or school boards opt out.

Five years ago, Lanell Griffith and her husband paid a little less than $2,700 in property taxes on their Topeka, Kansas, home in a historic neighborhood of tree-lined, brick streets. Their bill last year was more than $3,700.

“The government shouldn’t be able to arbitrarily just increase what they say you owe them without any sort of guardrails on that,” Griffith said.

Kansas lawmakers this year passed three measures that would have reduced the state’s property tax levy for public schools. But each was vetoed by Democratic Gov. Laura Kelly because of concerns about other sections to cut income taxes. The special session will mark a fourth attempt at consensus.

In Vermont, Republican Gov. Phil Scott has vowed to veto a bill that would raise property taxes by an average of nearly 14% to provide more money for public schools. Scott said people “simply cannot afford a historic, double digit property tax increase.”

In many states, property taxes are primarily a function of local governments such as counties, cities, school boards and special districts for libraries, fire departments and water systems. Each entity sets its own property tax rate, which is added to the others to come up with an overall tax bill for property owners.

State legislatures can intervene in a variety of ways. They can establish statewide limits on how much assessed property values can rise, create partial tax exemptions for all homeowners or provide income tax credits to help offset property taxes for certain people, such as those 65 and older.

But any relief carries consequences. Limits on the growth of assessed property values may provide a greater benefit to the wealthy. Exemptions for homes used as primary residences can shift a greater tax burden to rental properties and businesses.

“If you do this too much, you can now start tying the hands of your local government and cutting them off from the ability to raise revenue,” said Richard Auxier, a principal policy associate at the nonprofit Tax Policy Center.

While signing several property tax relief laws this year, Republican Wyoming Gov. Mark Gordon vetoed one that would have exempted 25% of a home’s value from property taxes. He said it “jeopardized the financial stability of the state and counties.”

In 1982, voters in Muscogee County, Georgia, approved a local ordinance freezing assessed property values for homes used as primary residences. The result: longtime homeowners pay very little, newcomers pay more and businesses face some of the state’s highest property tax rates, said Suzanne Widenhouse, the county’s chief appraiser.

Last year, two similar homes worth around $330,000 had dramatically different tax bills. One, whose assessed value was frozen in the 1980s, owed less than $8. The other, whose assessed value was frozen when purchased about five years ago, owed $3,236, Widenhouse said.

“Anytime you grant an exemption, you create an inequality,” she said.

A Georgia ballot measure would amend the constitution to allow increases in assessed property values to be capped at the rate of inflation. But it wouldn’t undo past increases.

In the eight years since Rob Romeijn bought a ranch-style house on 10 acres (4 hectares) southeast of Atlanta, Rockdale County has raised the assessed value of his property from $127,000 to $230,000, also bumping up his property tax bill, he said.

As a Dutch immigrant with permanent residency, Romeijn can’t vote in elections in Conyers, but he was so unhappy about the increase that he made a sign urging people to vote out Rockdale’s commissioners and protested outside county offices in April.

Colorado also has been at the center of the property tax debate. The state has experienced decades-long growth in new residents, driving up demand for housing. Meanwhile, it has struggled to find a balance between providing tax relief for homeowners and sufficient funding for local governments.

A 1982 constitutional amendment limited residential properties to 45% of Colorado’s total property tax base while also setting a fixed assessment rate for commercial properties. To keep the ratio in balance as home values rose, residential tax assessments were cut, leaving less revenue for essential services such as fire districts.

Colorado voters repealed that constitutional provision in 2020. Since then, assessed home values have risen rapidly and the General Assembly has responded. The latest law, signed in May, is projected to shave over $1 billion annually off future property tax revenue by reducing tax rates and imposing growth limits.

But that’s not enough to satisfy some residents. The conservative group Advance Colorado backed a citizens initiative asking voters in November to cap all property tax revenue growth at 4% per year and is gathering signatures for still another ballot initiative to lower property taxes.

“People are saying this is too much growth; government doesn’t need this much money,” Advance Colorado President Michael Fields said. “People are genuinely scared of losing their houses.”

Source: AP News

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UK house prices suffered their first annual decline in more than a decade in September as rental costs rose at a record pace, according to official data.

The average price for a property decreased by 0.1 per cent in September compared with the same month last year, down from a 0.8 per cent expansion in August, figures from the Office for National Statistics showed on Wednesday. This marked the first year-on-year drop since April 2012.

The fall reflects the effect of high mortgage rates on the market as the Bank of England keeps interest rates high in an attempt to weaken demand and lower inflation to its 2 per cent target.

The contraction was “primarily due to the effects of monetary policy tightening on mortgage rates and economic activity more broadly”, said Jake Finney, economist at the consultancy PwC UK.

“While we do not anticipate any [interest] rate rises soon, the impact has not fully been felt yet by homeowners,” he added.

Private rental prices rose by 6.1 per cent year-on-year in October, up from 5.7 per cent in September, the ONS reported, marking the fastest rate since the data series began in January 2016.

High borrowing costs have weakened demand for new homes as more households struggle to afford mortgage payments. At the same time, appetite for rental properties has risen pushing up rents.

Rising rental costs also reflect landlords passing on higher borrowing costs to tenants and a shortage of rental stock.

Karen Noye, mortgage expert at the wealth management company Quilter, said that interest rates “will stay higher for longer causing the slump in buyer demand to be prolonged”.

The sharp fall in inflation to 4.6 per cent has boosted expectations that the BoE will trim interest rates from June 2024. The market expects rates to remain at a 15-year high of 5.25 per cent until then.

The ONS house price index refers to deals finalised in September that may have been agreed several months before. It has a longer time lag than data sets from mortgage providers such as Halifax and Nationwide.

Unlike the other indices, the ONS includes cash purchases, providing a more comprehensive measure of house prices.

Gabriella Dickens, economist at Pantheon Macroeconomics, said the ONS house price index would come down in 2024 “with the nadir coming early next year”.

House prices decreased by an annual rate of 2.7 per cent in Wales and 0.5 per cent in England, but rose in Scotland in September, according to the ONS. London reported a 1.1 per cent fall year-on-year driven by contractions in cash and detached house purchases.

London registered the fastest rental price growth in England at 6.8 per cent, setting a new record since the data series began in January 2006.

Anna Clare Harper, chief executive of sustainable investment adviser GreenResi, said: “The only way to reverse the trend of rising rents is for policy to encourage more and better supply, and for professional investors to step into the void that is emerging, as traditional private landlords exit in droves.”

Source : FinancialTimes

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UK house prices rose for the second month in a row in November, according to a leading index, as a slight easing in mortgage rates helped coax more buyers into the market.

The average price of a UK property rose by £1,394 – or 0.5% – last month to £283,615, according to the mortgage lender Halifax.

It signals an uptick in activity across the housing market, where price growth has stalled over the past year because of an increase in interest rates and subsequent affordability pressures that have driven away otherwise eager buyers.

UK house prices have also been underpinned by a shortage of available properties over the past year, as many sellers wait for the market to normalise and prices to recover.

On an annual basis, prices are down 1%, although Halifax said this was a “relatively modest” drop given the economic headwinds that have weighed on consumers over the past 12 months. Average house prices are still £40,000 above pre-pandemic levels, having been skewed during the Covid crisis, when people scrambled to buy larger homes.

“Recent figures for mortgage approvals suggest a slight uptick in activity levels, which is likely as a result of an improving picture on affordability for homebuyers,” Kim Kinnaird, the director of Halifax Mortgages, said. “With mortgage rates starting to ease slightly, this may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases.”

However, Kinnaird said house prices were unlikely to continue their upward climb into the new year. “The economic conditions remain uncertain, making it hard to assess the extent to which market activity will be maintained. Other pressures – like inflation, the broader cost of living, overall employment rates and affordability – mean we expect to see downward pressure on house prices into next year.”

Northern Ireland has experienced the strongest rise in house prices over the past 12 months, with the average home costing £4,294 more compared with last year, at £184,684.

While London maintains the top spot for the highest average house prices in the UK, at £524,592, prices have fallen by 3.8% over the past year.

The Halifax findings chime with those of the rival Nationwide, which reported last Friday that house prices had risen for a third consecutive month in November.

Source : TheGuardian

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New Zealand now has the second-slowest rate of house price growth in the world, an international property consultancy says.

The Knight Frank Global House Price Index shows average house price increases across 56 countries slowed to 3.6% in the year ending March.

Increases were down from 5.7% in the previous quarter, and from a peak of 11.1% in the year ending March 2022, which was when housing markets boomed in the aftermath of the pandemic.

While 17 of the countries tracked recorded annual price falls, New Zealand exemplified the change in market trajectory.

Two years ago, the country was at number two on the index, with a price increase of 22.1% in the year to March 2021.

But in the latest index it was ranked number 55 out of 56 countries, with a price decrease of 13% in the year to March.

Only South Korea had a bigger decline, with prices down 15.7% annually.

Turkey was ranked number one, with prices up 132.8% annually, but it was noted that was largely due to the country’s rampant inflation, which was near 40% in May.

North Macedonia and Croatia took out the second and third places with increases of 18.8% and 17.3% respectively. Also, in the top five were Hungary and Lithuania at 16.6% and 15.3%.

The United Kingdom, Australia and Canada were ranked at 47, 48 and 50 with price falls of 3.1%, 5% and 6.9%.

Knight Frank global head of research Liam Bailey said prices globally were under pressure as central banks tried to rein in inflation, and were rising at the slowest annual rate since the third quarter of 2015.

While the latest figures revealed a substantial slowdown in annual price increases, quarterly increases had improved, he said.

“Global house prices contracted 0.6% in the final three months of 2022, and yet there was a 1.5% rise in the first three months of 2023.”

On its own, the reversal did not confirm that global markets were set to improve, he said.

“Rather, it highlights that tight supply, limited new housing construction and strong household formation are acting to underpin prices in many markets.”

New Zealand had seen one of the biggest corrections in prices in the current cycle, but it might soon point to an exit route from the global housing slowdown, he said.

“While prices are likely to fall further, the speed and depth of the correction suggest an uptick in both demand, and eventually prices will come back earlier than in many other developed markets.

“ANZ bank expects growth in both metrics before the end of the year.”

There were still several risks ahead for most markets, and inflation remained the main issue, he said.

Over recent weeks claims from commentators that New Zealand’s housing downturn had started to bottom out have increased, although some believed there was further to go.

ANZ, ASB, BNZ and Westpac have all said there were signs the market was turning, and revised up their forecasts to anticipate very moderate price increases over the second half of this year.

But CoreLogic’s latest figures suggested there might be more market volatility to come as the national rate of price falls almost doubled in June compared to the month before.

CoreLogic head of research Nick Goodall said market conditions remained diverse, but he believed the worst of the downturn was generally over for most areas.

Most commentators have said that while the downturn might be coming to an end, it did not mean the market was about to boom again.

Despite the steep fall in prices since the peak of the market, they remained at higher levels than they were pre-Covid, and affordability was still stretched.

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Britain’s biggest mortgage lender Halifax said values were down by 2.6 per cent in June, leaving the average price in the capital at £533,057, a loss of around £15,000 over 12 months.

It was the fastest rate of decline of any UK region apart from the south east where prices were 3 per cent down.

However, the long feared full scale crash in London property prices has not yet materialised despite 13 consecutive increases in interest rates from the Bank of England and the cost of average fixed mortgage deals passing the six per cent mark.

Kim Kinnaird, director, Halifax Mortgages, said: “How deep or persistent the downturn in house prices will be remains hard to predict. Consumer price inflation is likely to come down in the near term as energy and food prices look set to reverse their steep rises, but core inflation is clearly proving stickier than originally expected.

“With markets now forecasting a peak in Bank Rate of over six per cent, the likelihood is that mortgage rates will remain higher for longer, and the squeeze on household finances will continue to put downward pressure on house prices over the coming year.”

Market commentators said the impact of higher borrowing costs on house prices has been a “slow burn” because the vast majority of owners with mortgages are on fixed rates that are not immediately hit by any moves by the Bank of England.

Tomer Aboody, director of City based property lender MT Finance, said: “Although we have seen a fall in the demand and pricing, this is far from the expected or predicted downward trend. The sentiment is that the market is keeping a stiff upper lip, with buyers and sellers still out there, making the impact less volatile.

“Of course, the continued interest rate rises are impacting buyers, as people wait to see where the new norm settles, but we are not seeing the ‘crash’ that many were expecting because proportionately very few people are being affected by the rate hikes, since most are currently on fixed mortgages.

Source : EveningStandard

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