Denver, CO · Member since 2014 · 97 posts · 5 votes
I am considering buying an old home in France (not necessarily a chateau); they have houses called "manoir", that are really nice. The idea would be to buy and hold.
Anyone has experience on buying real estate in France as a US citizen? How did you get a loan? How was the management property?
Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
12y
I'm pretty sure you posted about this before. Something about getting a HELOC to do this? I would say, off the cuff, if you are looking into using a HELOC to buy a house in France, you probably don't have the money available to even consider such a move so stop trying to impress your friends with your real estate empire because they probably don't really care. If that wasn't you...
Then my next question is why do you think you need to buy a house in France? Seriously, what would be the point? Bragging rights? I see you are in SF so maybe you've capitalized on the whole social media trend and now you're looking for a place to waste invest your money? If so, go for it! I mean, there's never been a tech bubble before.
Again, seriously. Why do you keep posting about buying a house in France? Are you planning on moving there soon?
Maastricht, The Netherlands · Member since 2013 · 131 posts · 18 votes
12y
What @Aaron Mazzrillo says: what's your fascination with France? Read Immobiliez-Vous if you're really serious, it'll have you running away screaming from the French market.
If you're interested in buy & hold INVESTING, then stay away. You're better off in any European country other than France for the moment. The French themselves are investing in troves anywhere from Belgium to Florida, just not their own market, for good reason.
I can't be more clear than that. If you adhere to the principle "first you buy your market", then don't buy France. But if you really want French property as a buy & hold in order to perhaps relocate or have as a second home in the future, then you might, but it still depends.
Studio's in Paris are a no go, but manors/mansions/chateaus you can actually get for pretty cheap, even if they continue to be priced high. The buyer pool has dried up, so you should be able to get a deal with a 30% (or more) discount.
Now, France is a big place, so pick your favorite location first. Then, watch out with manors/mansions, these can sometimes even be pre-1800. Lots of rules, regulations, upkeep and operational costs. A real castle can require hundreds of thousands of euro's a year. Trust me, I've lived in one (long story).
Also, a lot of places just won't rent. Some isolated villages, for example. But they're the dream of many a francophile European, which is why a lot are running a B&B or even AirBnB business from them in their golden years right now.
If that's what you're planning to do eventually, then you don't need to look at it to cash flow. But still, try getting it to stay somewhat break even.