Want to Live Abroad? France is One of the 12 Best Countries!

Photo by Jacqueline Hughes

Given the recent political climate in the U.S., Americans unhappy with the potential outcome, and even many who don’t care about politics at all, consider living somewhere else on the planet besides their native homeland. There is a long list of reasons for that. For me, it wasn’t about LEAVING the U.S., but it was more about experiencing living in France, just for the hell of it…to experience another way of life, to see life from a different perspective and even to learn another language and of course, culture.

In a recent article in Thrillist.com, titled “The 12 Best Countries for Americans Who Want to Live Abroad,” Paris is one of the dozen, to no one’s surprise.

Here’s what the article says about Paris (and France):

– Cost of city living: Paris (price index 215) is Seattle plus change.
– Proportion of English speakers: More than a third
– Americans living there: Eurostat found almost 50,000 in 2005.
– Why you’d want to live there: Here’s the norm in France: 35-hour workweek, 90-minute lunch breaks, wine at pretty much every meal, no open-container laws, unpasteurized cheese, great soccer…living the dream, in short. Recent terror attacks have the politics in a jumble, but if you want calm, simply grab a coffee by the Seine to pass all the time you have off. In addition to the short workweek, French employees are given five weeks of paid leave along with 12 federal holidays a year. Prowl the restaurants of Lyon, the museums of Paris, the beaches of Cannes, the vineyards of Champagne. As you work less in France, you’ll live more.
– What’s the catch: The French aren’t renowned for their embrace of foreigners. And no, high school French and an admiration for Amelie aren’t going to help you cozy up to the cool Parisian crowd. If you don’t have a     French-born significant other, expect some serious social isolation. You’ll most likely find your social circles among other expats, but hey, Jazz Age Americans in Paris essentially invented expat cool. Also, getting a work    visa is notoriously difficult, so if you don’t have full-time employment in France, expect to live below the law. — M.K.
    
Whomever M.K. is, he/she got it almost right. This perspective assumes that the person wanting to live abroad is young enough to still be working and therefore loves hearing about the 35-hour work week, the many legal holidays and the 1.5 hour lunch breaks. But what if you’re a retiree and none of that matters? What if good health care that is also inexpensive is more important to you? Or things to do without needing to drive are a big factor? Or you want to make a good investment in a home you can live in the rest of your life? France is a great place to do it.

Expat.com recently interviewed me on the subject of French Property. Here are a few excerpts that might be of interest to you:

Q: What are your views about the current French real estate market, especially that of Paris?

A: The current real estate market in France is forever evolving with the variable conditions that affect it: the highs and lows of interest rates of financing, strength or weakness of the Euro, terrorist activity or lack of, unemployment and strength of economy and most important, the laws that govern real estate transactions and taxes. Paris real estate has not suffered a loss in prices since the low in 1998. Prices flattened out on a couple of key occasions, such as the economic crash in 2008, but never destabilized and is currently on a price and sales volume increase.

Q: How, according to you, has the French real estate market evolved for expats in France? Has there been a rise or decrease in the demand?

A: Those who purchased in the early 2000’s have benefitted most from their investments. For the next 10 years or more, foreign investors have been able to realize significant rental revenues and large increases in the value of their property. Since the “crack down” on short-term rentals in Paris beginning in 2009 (the only city to enforce the national regulations), getting a good “ROI” is exceedingly more challenging. Demand is still high, particularly in Paris and Nice, as the rate of exchange from dollar to euro is quite favorable and lending rates are at an all-time low. But demand is always strong among American expats and we find that given the current rental laws, investors are buying more expensive properties and are not dependent on rental revenues to maintain them.

Q: What are the advantages and disadvantages of investing in real estate or buying property in France?

A: Purchasing in France as compared to other European countries is a safe investment bet. There are tight rules and regulations along with consumer protection in France that may be highly bureaucratic, but which make the investment fairly risk free. The cost of entry is high, but the cost of ownership is low, particularly compared to the U.S. where property taxes can be unimaginable. Capital gains taxes are high on secondary properties in France, but reduce over time, so long-term ownership is more desirable. Property prices tend to remain relatively stable thanks to a variety of aspects of the system which do not encourage “flipping,” “price wars” or other events that would create a “bubble” or make the market volatile. In cities like Paris, where building restrictions are rigid, the quantity of property is more finite and therefore demand usually out performs supply, keeping prices and values up.

Q: What are the formalities expats can expect when buying property in France?

A: There is no difference between an expat and a native French person purchasing property in France. The process is highly bureaucratic and cumbersomel, however, an expat who is not familiar with the laws, the system and the language, can be overwhelmed by the bureaucracy of the process. We do not recommend they venture into the market without professional advice and assistance.

Q: In general, who are the expats that are likely to buy property in France (any specific feature: nationality, profile, family…)?

A: Expats of all kinds purchase in France, and do so in particular communities. The British are the biggest foreign buyers overall, followed by Italians, particularly in Paris and on the Riviera. Americans tend to purchase in Paris, Provence and the Riviera.

Q: As an expat, what should one expect in terms of rent prices?

A: Rental rates for long-term rentals in Paris are approximately 35€ per square meter per month for a furnished apartment. However, rent control was introduced in August of 2015 and rates are determined by district and apartment amenities. Most landlords are not complying with the rent control laws in an effort to maintain the value of their investments and various groups are lobbying against them. Short-term rentals are considerably higher – two to three times.

Q: What would be, according to you, the ideal places to invest in property in France?

The two most ideal spots in France in which to invest are Paris and Nice. Paris, because Paris is Paris as an international and historic city with a finite geographical and highly regulated market. Nice because it’s an international hub with enormous growth, with properties at half the price of Paris with excellent rental potential.

Q: What would you advise to soon-to-be expats looking for housing in France?

A: I would advise never to seek property or go through the process in France alone without the counsel of professionals who are looking out for their interests.

You can read the article in its entirety on expat.com.

A bientôt,

Adrian Leeds
The Adrian Leeds Group

(by Les Young)

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