Thinking of moving to France

[bambros2]

Hello all,

I've been looking at a lot of the info on these pages and my head is just buzzing - you all provide such great advice so was hoping you could do the same for me.

My husband and I are both professionals who have a fairly good understanding of French (hubby in IT and I am an event manager), we have 2 small children (one 5 and one 2).  We have been thinking for several years now that we would like to do something different and spend more quality time together whilst still earning a reasonable income.

We have viewed a gite business in poitou charentes and we love the area - not just for the weather but the people are so friendly with a real community spirit.  We love England too but feel we would like to give our children the chance to experience a different culture and way of life.

My questions are as follows:

Is the idea of running a gite business totally proposterous with 2 young children?  (the current owners have someone to do the changeovers) - would welcome comments from people doing this already.

Is it possible to earn a decent living from a gite business?  (the current owners have 4 gites they let out)

Many thanks and I look forward to the replies.

 

 

[Panda]

Whether it is possible to earn a decent living from the business should be obvious, how much are they currently getting from the gites per year and what are their current costs?  You presumbly have asked to see their accounts, tax returns etc. so can you say what the income is?

Having the two kids about is only an issue on changeover day and you could easily have someone mind them or get help on the day.

[andyh4]

Not a gite owner and no longer have small children, so my answers are rather based on general experience.

 

If you were buying a business in the UK you would ask to see the books.  Why not ask the current giites owners to show theirs?  You can then make a more informed guess of whether you can live of the income, than anyone here can.

 

At a guess (and it really is no more than that) I would doubt that 2 professions and children would gain enough income from 4 gites - but there are gites and there are gites.  That's why you need to see the books.

[bambros2]

Hi yes

Thanks for the quick response.  Yes the accounts seem very good ( a little too good to be true) our accountant is looking over them at the moment to check the figures.  Hopefully they will be accurate.

[Panda]

Are they french registered?  If so it would help you to know what cotisations (NI equivalent) and tax they pay as this can knock a big hole in income.  It should be roughly 25% of the gross income if registered as a Micro, I assume they are not registered as a mico though if the income is good as a micro limit is 32k.

 

[bambros2]

Thanks will check this out

[Braco]

bambros2

While I have no experience of running Gites, I strongly believe that rental income with a young family should be only be considered as a income supplement and not a main income stream unless you have substantial capitol reserves or alternate income sources.

 

 

[bambros2]

Thanks - everything is still up in the air at the moment in that we have a few business ideas in the pipeline and there is a chance I can also do some of my work from France but still be employed in this country (although still looking into the legalities of that one!)

 

[andyh4]

You need to do a thorough search on working in France for a UK company - it is a regular topic here and elsewhere.  Cost for you or for the company can be very high - expect to loose 50% of income in taxes, cotisations and other charges.  Not trying to put you off, but you do need to undertsand the minuses as well as the many pluses

[Quillan]

It is not in the interest, tax wise, for the owners to sell the Gites as a business. The general way the business is sold is as houses as in a private house(s) sale. The business side is then sold separately and as a guide should be the average of the last three years business.

Whatever you do, be it Gites or B&B, do not take a loan to buy. Very few people can 'live' off the income from Gites and B&B without a second job let alone with a mortgage. I was told this years ago and having run a B&B for some time now I know I would never have been able to survive if I had a mortgage.

As others have said it is so important to see their books. They also probably keep a diary with their bookings in which you can use to cross reference the books just in case there are any 'errors'.

Whatever you do, good luck.

[Cerise]

I think I'd go further and say plain don't do it if you have small children and no other income.  Even if the books look good, currently the holiday market is suffering a downturn and this may be why the present owners are getting out.  It will eventually turn up again, but can you afford to wait 2 or 3 years before you make any money.  Rental income is always unreliable, one bad season can eat all your savings.  If you are just two adults you can scrape by taking odd jobs if necessary, but who wants to 'scrape by' with a young family.

Many of the people making a 'comfortable living' from gites or B & B, actually have pensions or other income in place as well so that is the icing on the cake.  I've lived here 7 years, we have a fairly successful B & B and my husband works (but French wages!).  We are OK but we would be struggling if we had a family as well.

If you decide to go ahead, make sure you check things such as the dreaded fosse septiques.  If things are not 'aux normes' there may be a sudden - expensive - requirement to bring things up to date.  It may be worth checking with the local tourist office, Gites de France or any other body they are curently registered with that there are no urgently required upgrades (check water, electricity, pool security, roofs, insulation) so that you don't end up paying out a large unexpected sum.

I'm sure you have probably thought of this yourselves - and like Quillan I wish you luck in whatever you eventually decide.

 

[bambros2]

Thanks so much for all of your replies - you have certainly given me food for thought.

Kind regards

S