Saving Money

Although France is less expensive than many other places (such as England), there are some easy ways to save even more money. Following are a few tips, we will be adding additional tips over time:

• Currency Conversion. When buying in France, you will need to pay in Euros. If your money is in a different currency (e.g. English pounds, American dollars), you will need to convert the required amount into Euros. Many people make the mistake of using a bank to do the conversion, which is very expensive as banks offer poor rates of exchange and often charge various fees on top for converting money and for transferring money. With half an hour of your time, you can arrange to have a currency exchange company do the currency conversion for you. In many cases you can save up to 4% (or more). So, on a 200 000 euro property, you can save 8 000 euros with just half an hour's work.

• Regular Payments. If you are transferring money on a regular basis to France (e.g. to pay living costs), you are probably losing money at both ends. To begin with, unless you are using a currency exchange company (see point above) you are likely paying too much for converting your money to euros. Secondly, when sending money from one bank to another, you will normally be charged a transfer fee by the sending bank and often by the receiving bank as well. Avoid both costs by using a currency exchange company.

• Euro-Mortgage. If you are taking out a mortgage to pay for your property in France, there are a number of different currencies you could take the mortgage out in. For example, if you are living in the UK and buying a second property in France, you likely have the choice of taking out a mortgage in pounds or in euros. There are a number of factors which need to be taken into consideration when choosing the mortgage currency (e.g. having your main liabilities and main assets in the same currency), but one fact to consider is that mortgage rates for Euros have been historically quite low and consequently quite attractive.

• Pre-approved Mortgage. Many people wait until they find the property they want to buy before applying for a mortgage. However, there are a number of advantages to applying for approval prior to this. One advantage is that you know exactly how much you can get a mortgage for, before making an offer. Another advantage is that pre-approval strengthens your offer and negotiating position. A home seller will often choose an offer that is pre-approved for a mortgage over someone whose financial picture is still in question. They may even accept a lower price from a buyer who is pre-approved, as they know that the deal is less likely to fall through than with someone who is not pre-approved.