Holiday Home - is it worth it?

[Pel]

Sorry about this long post. I live in the UK, am getting on

in years and am thinking of buying a place in Provence as a long term investment

 as a holiday home for me to enjoy in my

remaining years but also my two grown up kids. When I say investment I mean

somewhere that at least maintains its value. Also myself and family will only

probably use it for 2-3 months each year so looking for somewhere that perhaps we could rent out. My daughter

wants access to beaches and Italy, my son favours more towards Marseilles for

easier transport links.  I have about

£150k to spend.  I wonder if what I am proposing is a realistic

proposition or something that will turn into a burden and a worry. Have any of

you done something similar and was it regret or delight?   Has

anyone any suggestions for location? Is there a website where private sellers

post their properties for sale? Many thanks in advance for any comments.

[EuroTrash]

I assume you have also considered the annual property taxes which can be several thousand a year regardless of how often you visit the property, the cost of keeping the utilities connected even when you're not there and presumably keeping heating on over winter, and also the cost of maintaining the property and any land. Weeds and grass grows when you're not there and the weather has been harsh on empty properties this year.

In terms of investment, most property in France doesn't appreciate significantly if at all, so maintaining its value is probably the best you can hope for.

Renting is fine if you're on the spot although you still have income tax on the rental income to pay in France, but if you're not on the spot you would have to find and pay a person to do changeovers and keep the property tidy and sort out any problems your guests have or damage they cause.

As you've probably guessed, if it was me and I had 150k to spend on holidays I would treat myself to a nice gite in a different part of France, or not necessarily even France, several times a year - no maintenance, no worries about storms or burglaries, no taxes to pay, just turn up, enjoy your holiday, then lock the door and hand the key back. But if you would feel bad about "spending the kids' inheritance" then that is a different question.

[andyh4]

Not done it Pel but some thoughts.

You can look for property on www.leboncoin.fr.

Alternatively do a Goggle.fr search for "immobilier Provence" You will get hundreds of hits.

150k does not seem a lot for a property where you are looking, but if you are prepared to take an apartment I am sure it is possible. Any purchase of property as an investment is a risk - possibly more so in France than the UK. PACA (Provence, Alpes, Cote d'Azur - the region you are looking at) has held up well regarding property values, which can be looked at two ways - it is a relatively safe bet, or it is a market that could see a correction. Currently I would favour the former, but I make no claims as an expert.

Beware of properties that are in need of renovation - not what you are looking for.

Think about renting out carefully. The period when you are likely to get short term (weekly) rentals is likely to be exactly the period when you will want to use it yourself. You will also need an agent to handle change-overs and for trouble shooting. This will impact on any income you hope to make.

Location:

Nice has virtually as good air connections as Marseille - in fact if you discount the low cost airlines, Nice has a better service with national airlines. National airlines are less likely to walk away from a route than the Locos. The downside is that I think you will find that that end of PACA is more expensive than the more industrial Marseille area.

[nomoss]

Regarding French property as an investment, it's probably a good way to lose money, at least in the property market here at present.

Besides the property taxes and standing charges for services already mentioned, all property sales are carried out by a Notaire, who collects transfer tax, together with his fees, which are both charged each time a property changes hands.

These will add at least 8% to your purchase cost, and will be charged again when the property is sold.

Although these charges are paid by the buyers, they are part of the purchase cost as far as they are concerned, so will affect what they will be able to spend.

As a non resident you would also be liable to capital gains tax on the eventual sale, although it is rather unlikely there would be any gain to be taxed.

[woolybanana]

To answer the basic question, no it is not worth it unless you get a lot of use out of it which means several months a year, if you enjoy going to the same area very frequently and if your renters chip in to the costs.

Remember that teenaged and older children who enjoyed the place when they were kids may no longer do so, so it will remain empty for even longer.

I concur entirely with the posters who advise renting gites in different places both inside and outside France.

[Pel]

Many thanks to all of you who replied for taking the time and trouble and for being honest. Certainly lots of food for thought there.

[richard51]

Agree with comments so far.

To add a little, we were concerned that we would eventually get tired of going to the same place for our holidays. However with the concept of home exchange,especially if you have a house in a holiday/popular area, then non-simultaneous exchanges can be made which can be to some wonderful places.

[BritinBretagne]

My holiday home in France was simply the best thing I’ve ever bought. Buying or not is a very personal decision. From what I’ve seen base your decision on what you plan to do with it and don’t rely too much on what others who have not made the same financial contribution say.

[Cendrillon]

Our holiday home of 18 years has been worth while. A great joint retirement project. Our children had just about finished university. They're now working, have families

And we love to see them and spend time together and with our 5 grandchildren.

To O.P. you say you are getting on in years...is that 60, 70, or 80 plus?

Consider whether you will want to drive in France in years to come, how much time will you spend at your second home, perhaps most importantly how keen are you to have to maintain property at home and away.

It's a good life if you can manage it.