Thinking about buying Paris property with family or friends?
Is it possible? Easy to do? Or is it full of red tape?
These are common questions we get asked at 56Paris, and it’s the topic of a new video on our YouTube channel with Kerstin Bachmann, Managing Director of 56Paris.
Purchasing an apartment jointly
Buying Paris property with family, children, or close friends is a request we hear all the time.
It’s a big part of the dream. A holiday home, in a great location in the capital. One where you can all take turns throughout the year to stay and enjoy a taste of the Parisian lifestyle. Then come together for family events and celebrations. Or even rent it out to generate income.
Of course, all of this is perfectly possible. But there are challenges to navigate before making such a huge commitment.
The French legal system does offer structures that allow joint ownership, regardless of whether the owners are jointly responsible for each other through marriage.
However, the system can be restrictive, and more so for foreign buyers who don’t live permanently in France.
Things to consider
If you’re talking about co-purchasing an apartment, you must all be clear on what’s involved.
You need to talk through all possibilities, such as what happens if there’s a dispute, what happens if one person dies, or if someone wants to sell their share.
You must communicate openly and honestly with your family and friends from the very start. This will help to avoid any misunderstandings or disagreements down the road.
You will also need patience. Delays are possible, and it can be a complex process. Although an expert search agent can certainly help you smooth these out.
Get professional advice too. It’s always a good idea to get legal advice from experts who are familiar with the French property market.
Everyone in the group needs to be on board with these decisions before taking the next step.
Financing a joint purchase
The most important thing is to decide how you will finance your joint purchase here in Paris.
In France, banks and credit institutions evaluate the individual situation of each future owner, together with the market value of the property.
To obtain a loan in this way, the purchasers are all responsible for each other’s debt, in case anyone defaults on the monthly payments.
In general, French banks are more flexible with parents and children buying together. This won’t encounter too many issues.
Other than that, for groups of friends for example, it can be more complicated.
But there is a solution.
The best solution
To avoid the red tape when co-buying a property, we would suggest looking at ways to finance the purchase through other means. Ways that avoid the strict regulations of French banks.
If you have enough savings across the family or friends group, that’s ideal. Cash buyers will certainly have an easier time.
If that’s not possible, a solution is to get a home equity loan or remortgage on another property, perhaps your main dwellings or other properties you and your family each own back home.
You would then be a cash buyer, and will avoid having to apply for a joint French mortgage.
Don’t forget to watch our latest video about this topic.
You can also find out more about our real estate buying services on the 56Paris website.
Want to know more about buying Paris property with family?
Want to know more about buying Paris property with family or friends? Don’t hesitate to get in touch with 56Paris today.