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5. Recap of Out-of-Pocket Property Acquisition Costs
As an example of out-of-pocket costs to acquire a home in France, let's consider
a four-bedroom renovated mas with a pool in Provence. With the
help of JUST FRANCE SALES, the buyer and
seller have agreed upon a sale price of 700,000 €.
All figures are in €. For today's
exact conversion rate for major currencies, click
here.
The first example is for an acquisition without a mortgage. The second is for an
acquisition where 60% of the purchase price is financed. A. ACQUISITION COSTS (NO
FINANCING)
JUST FRANCE SALES | - 0 - |
PROPERTY COST | 700,000 |
NOTAIRE FEES & CLOSING COSTS | 43,400 (6.2% of purchase price) |
TRAVEL, LODGING, MEALS, ETC. DURING ACQUISITION PROCESS | 4,500 (2 trips)
___________ |
Total Acquisition Costs with no financing | |
B. ACQUISITION COSTS (60% OF PURCHASE PRICE FINANCED)
JUST FRANCE SALES | - 0 - |
PROPERTY COST | 700,000 |
NOTAIRE FEES & CLOSING COSTS | 43,400 (6.2% of purchase price) |
TRAVEL, LODGING, MEALS, ETC. DURING ACQUISITION PROCESS | 4,500 (2 trips) |
MORTGAGE ACQUISITION FEE | 6,300 (1.5% on loan of 420,000) |
LESS AMOUNT FINANCED | -420,000
___________ |
Total Acquisition Costs with 60% financing | |
In addition to these costs, buyers should prepare for advance payments on property insurance and security deposits on utility accounts. These deposits generally will not exceed
2,000 € total.
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