ams Posted February 16, 2008 Share Posted February 16, 2008 The better half has fallen in love with an old house beside the sea. It is 74 M2 and needs total renovation. The estate agent said the area is in a protective zone and the maximum m2 that can be added is 25 m2, either along the side or the rear of the house. The logical area seems to be at the side, out 2 m and back 12 m. As a person with little to none experience of renovating i will have to hire a builder. It would appear to me as the side of the house is quite high that the roof can be extended naturally to accomodate the additional 2 m. The roof looks in good condition, apparently replaced in 1999 after the big storm. Essentially it seems to me that the ceilings, floors and all internal walls have to come down, 100% electrical rewiring, new santitary ware, new kitchen, equipment, new external wall placo insulation. all of the windows have to be changed to pvc double glass. Three 2m sliding doors and a new entry door. Front of the house needs to be plastered, i think crepée in french the agent said. internal painting etc. The house has not changed since the date it was built in 1937, it even has a 8 m2 german communication room in the basement which is entered by a 80cm steel door, which because of its historical nature can not be removed. The impossible question is, can it be restored for modern day living, with a budget of €100,000. ? ams Link to comment Share on other sites More sharing options...
LEO Posted February 16, 2008 Share Posted February 16, 2008 Yes it could be, however it may not be 100k well spent! From your description , I personnally , "would run a mile" Link to comment Share on other sites More sharing options...
Nick Trollope Posted February 17, 2008 Share Posted February 17, 2008 100K€ for 100M2 refurb and conversion? Pushing it, if you don't anything yourself (20% of that would be non-recoverable TVA).Ask yourself why it has not been snapped up by someone French, with all its history.... Then do what Leo suggests, IMHO. Link to comment Share on other sites More sharing options...
ams Posted February 17, 2008 Author Share Posted February 17, 2008 I am concerned, that it could end up a big cash hole. Still the location is fantastic, opposite the beach, front line and the only one on the market for a very long time in this area, charente maritime. ams Link to comment Share on other sites More sharing options...
ams Posted February 17, 2008 Author Share Posted February 17, 2008 I guess the reason that it has not been taken is because the asking price is very high. However the agent indicated that the owners are willing to negotiate the price for a cash buyer as it has been on the market for 18 months. It is a front line property in front of the beach with beautiful, full views of the sea and the beach. the only draw back is in summer, as the road in front of the house becomes a car park in July and august.I thought that some parts of the renovation costs would be charged at 5.5% vat, whilst other costs at the 19.6% rate. ? I am grateful for your thoughts and opinions and to all others as we have no experience of dealing with renovation projects or old houses, our only experience in france has been with new builds. ams Link to comment Share on other sites More sharing options...
Nick Trollope Posted February 18, 2008 Share Posted February 18, 2008 "Total renovation" attracts 19.6% TVA, I'm afraid. Link to comment Share on other sites More sharing options...
ams Posted February 18, 2008 Author Share Posted February 18, 2008 Thanks Good news for me, bad for the better half. ams Link to comment Share on other sites More sharing options...
Gluestick Posted February 18, 2008 Share Posted February 18, 2008 A good rule of thumb is to find the local price approximation if the property were finished and on the market.Don't rely on agent's magic pencils here! As a benchmark compare with other property for sale: less say 15%.Next ask a local builder for a rough estimate. If you seek a detailed devis he will probably chanrge you for this, as from his side the process is highly speculative.Then add together the current asking price and the renovation costs then add 20% cushion.Once you have some core numbers, ask yourself if it is really worth taking on all the stress, worry and problems for that location!The sensible conclusion will then reveal itself pretty quickly! Link to comment Share on other sites More sharing options...
Monika Posted February 18, 2008 Share Posted February 18, 2008 That's exactly it Gluestick, that is the calculation you have to make and if after all this you could buy the finished product I would not go for the Renovation (I am talking as a "battle weary " Renovater!) . But being in such a good position near the sea it might well be worth your while to renovate, because those places are very sought after and will be in the future. With the TVA it so much depends on your builder, I know of people who have done whole renovations and extensions and only paid 5,5 % TVA (having signed a document that the house you are renovating has been a dwelling for the past 2 years) Link to comment Share on other sites More sharing options...
clarksinfrance Posted February 18, 2008 Share Posted February 18, 2008 Also you may or not be aware that if you complete a total renovation, and then decide to sell within 5 years (IIRC) you will also have TVA to pay on total sell price.But in answer to your question, I would surmise it can be renovated (depending on level of trim, some self work etc) for €100,000. That said, you will have to take into account purchase price, fees, taxes etc to come to a better understanding of the situation. Link to comment Share on other sites More sharing options...
Ian Posted February 18, 2008 Share Posted February 18, 2008 It also depends on the "better half's" level of love for this property and your ability to affect this (positively or negatively)!A messy divorce can cost a lot more than a small seaside renovation project [;-)] Link to comment Share on other sites More sharing options...
Patf Posted February 18, 2008 Share Posted February 18, 2008 If you do decide to go for it, check out first that the sea isn't encroaching this part of the coastline. Not sure who you would ask, maybe the DDE, but I know that some parts of the french coastline are being eroded by the sea, as in UK. Link to comment Share on other sites More sharing options...
Monika Posted February 18, 2008 Share Posted February 18, 2008 I think you are right, I have heard that before Clarksinfrance, but is that 5 years from purchasing the property which was then renovated or 5 years from signing off the work, where could I get more information on that? ? Link to comment Share on other sites More sharing options...
clarksinfrance Posted February 18, 2008 Share Posted February 18, 2008 I am led to believe in a casual converstaion with our Notaire it is 5 yrs from when the Hotel d'Impots receive your form, which declares the building habitable again, not necessarily completed. But please put this and any other questions to your local Notaire, its OK for to listen to the likes of me and others here for non-critical advice, but in these types of situations, ask the question of a professional before you commit yourselves.Someone else has pointed out the possibility of the sea encroaching on the possible future property, this web-site may help determine if you could be at riskhttp://cartorisque.prim.net./. Link to comment Share on other sites More sharing options...
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