Dordogne - to buy now or to wait ?

Last activity 18 May 2022 by evanspiano75

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MelliehMember10 April 2022 16:11:16

Dear Expats,

We are at the start of a planned permanent move to The Dordogne once we are in a financial position to take early retirement.

We would like to purchase a property (with a mortgage) within the next 18 months to use as a holiday home for ourselves for approx three years after purchasing it, until we can afford to make a permanent move in around 5 years from now (give or take a year).

My question is this: does this make financial sense? Or are we better off just waiting until we are ready make a permanent move in five years before buying? I’ve been trying to work out if we bought now whilst still having a house in the UK, whether we would be taxed for having a second property. I’m not sure if the second property rule applies worldwide or to two French properties?

Any advice would be appreciated.

I do have a couple more questions - pet related, but will post them separately 🙂

Many thanks

Mellie

Harley1550riderMember18 April 2022 09:01:50

@Mellieh You will be taxed in the UK for owning a 2nd home abroad plus the Tax Foncier and the Tax d'Habitation will be higher in France. But prices are increasing here and will be substantially higher in 5 years. I have been living in the Dordogne for 19 years.

OblibleNew member17 May 2022 17:53:02

As said below, you'll have to pay "taxe d'habitation", "taxe foncière", water ... and in some cities you have also a tax on holiday homes.

But first question should be : will you find a bank that will help you to buy the house while you are not living nor working in the country ?

evanspiano75New member18 May 2022 08:12:09

I have heard from good sources that it's almost impossible to find a French bank that will approve your mortgage. I don't know about English banks.

Current buzz is that real-estate bubble hotspots in North Amercia and Europe have reached a peak, and prices are beginning to drop, as demand slows.. However, that would differ from region to region, and the Dordogne might be different.

I think more research is needed all round, with many advisory agencies to be found online. Check out prices yourselves over the next few months and see which way they seem to be going. We have lived in France since October, with the resources to buy a house motgage-free, but have decided to delay a permanent decision, and rent until we're more sure of how we want to shape our future. In our region, we are seeing houses stay on the market longer, and prices are therefore beginning to soften as a result.

Another difficulty might be obtaining permanent residence. Have you checked into that? I was able to come with a permanent residence working visa based on a liberal profession project of my own. I don't know for sure if a retirement visa is possible here, and post-Brexit, UK citizens have lost their claim to residency in France through membership of the EU (as I'm sure you know).

This is good place to start, but you need to check things first-hand from expert sources for yourselves.

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