Friday, April 9, 2021
Dear Your Overseas Dream Home Reader,
The air is cool inside the old winemaker’s house, a welcome break from the summer sun.
The house has three floors. In total there are six bedrooms, and lots of what you’d call “character”—original floor tiles, heavy wooden doors and wrought-iron finishes. It also has a small shady garden in front making it perfect for renting.
On my last scouting trip to the Languedoc, in southern France, I explored a bunch of such homes.
Few of the old village houses in this part of France come with outdoor space and the key for investors is to find something a little bit special, a house with an unusual feature…like a 600-year-old winding staircase…a delightful little garden…a big terrace ideal for adding a hot tub…
I was hunting for historic village homes surrounded by vineyards…bargain properties you could stay in part- or full-time and with the potential to throw of some rental income too.
The winemakers house was a fine old mansion. It was close to the village’s boulangerie for fresh croissants, a small market for groceries, and the local café for an espresso or pernot. I’m not sure the age of the house but it’s possible to find 800-year-old homes for sale in the area.
If you’re idea of France is fairy-tale castles perched on rugged mountain peaks and medieval villages where the food is amazing and the wine is local, then you’ll find everything you want in the Languedoc.
And if you yearn for Mediterranean views, long beach strolls and fresh seafood, then the Languedoc has that, too.
As I explained in yesterday’s mailing, the Languedoc region offers some of the best value in France.
Its Mediterranean coast is part of France’s sunbelt and its long sandy beaches are still fairly uncrowded. Inland you’ll find wild mountain ranges, dramatic gorges and stunning hill towns that can easily compete with over-touristed and over-priced Provence.
It has long been popular with French second-home owners, but today, thanks to extended lockdowns, and encouraged by low interest rate, more and more French buyers from larger cities are looking to the Languedoc for country homes.
Budget conscious British expats discovered the villages of the Languedoc a while back. But due to the Brexit Effect their residency options are now limited, and motivated sellers are emerging.
|
|
The best play is to look for what’s called “a house of character,” a historic home. These appeal to both foreign and French vacationers coming for heritage and wine tourism and I recommend focusing on the villages along the coast and closest to the sun belt ensuring you get the best of the weather year-round. As you get into the highland regions the climate is cooler and wetter and the season shorter.
I recommend looking for a house of at least three-bedrooms. You’ll be shopping with a budget of around €250,000 to €300,000 ($280,449 to $336,539). You can find smaller, cheaper properties but that limits you to a smaller pool of renters. You want to target the widest pool of renters, and families and couples will all want what you have.
My team and I have been conducting some initial research for a forthcoming issue Dream Home Digest, which I mail to RETA members. And we’ve found some interesting prospects in the Languedoc.
For instance, this character home is located in a small village just 30 minutes from the Mediterranean coast. It has four bedrooms, two bathrooms, a spacious sunny terrace, and a private courtyard and pool. The listing price is €289,000.
|
|
My advice is to avoid houses in need of renovation. You won’t see any additional return for the additional costs you incur doing the work—and they could be hefty. Keep your buying costs as low as possible to maximise your return. In this market there are plenty of turn-key renovated properties available. Many foreigners arrive in the Languedoc, fall in love with a historic home, and pay handsomely for impressive renovations that will never be reflected in the price when they sell. You need just swoop in and enjoy the fruits of their labor and bank account.
You want to find something with some unusual feature, a winding medieval stairs, a unique tiled floor…something to stand out. This will boost your rental profile. And you should ensure you have space to add in some touches like a treadmill in the basement, a sauna, a hot tub, bicycles…one of my researchers even suggested throwing in a classic Citroen for guests to use.
This renovated three-bed stone house in a quiet hilltop hamlet offers a lot of French charm, with expansive views of the surrounding region, and just five minutes’ drive from a lively tourist town with restaurants, cafes, shops, and boutiques. It lists for €259,600.
|
|
The peak season here is about 13 weeks, from May to August. With the right property you should see some rental demand beyond that window.
The winemaker’s house in the village of Saint Genies de Fontedit that I visited on my scouting trip in 2019 listed for €279,000 ($313,000 at the time). Marketed right, I figure a buyer could rent for about €1,200 ($1,428) a week, maybe make more. Historic homes with a pool or a garden big enough to have one installed are rare finds and would be in strong demand in the hot summer months.
Foreigners can get mortgages here, and they come with eye-poppingly low rates—sub 2%. The criteria however seem unclear and subject to change. I’ve heard of some Americans getting through the process easily. Others…well, the bank’s process just didn’t understand their sources of income. It’s very important your income is easy to explain and you have a steady three-year plus history.
Remember, it’s crucial you do your due diligence. I haven’t visited the properties above. I just wanted to share them with you to give you an idea of what’s available.
I will be taking a deeper dive into the Languedoc in a future edition of the Dream Homes Digest for RETA members, where I’ll share some of the best deals my team has discovered in the region.
If you’re not a RETA member, sign up here.
Wishing you good real estate investing,
|
|
Ronan McMahon, Real Estate Trend Alert
Your Comments and QuestionsMJ says: We am looking to spend half a year in Portland/Vancouver area (summers) and spend winters in Mexico. I now live in Miami. We’re interested in hearing more about what’s on offer. Ronan says: Hi MJ. First thing, assuming you are new subscriber: I’m not a real estate agent. So, I don’t have a brochure of properties to try and sell you. However, if you’d like to share your preferences, I can offer some guidance on where to look, what to look for, and where you might find the best rental potential for when you’re not using your home in the summer. Furthermore, if you’re a RETA member, you can also act on one of our members-only deals. This is an incredible benefit. Essentially, we can negotiate huge discounts on best-in-class real estate by using our group buying power. Some of our upcoming deals might be of interest to you… For instance, we have an incredible deal on condos coming up in Tulum on the Riviera Maya. These will be some of the closest condos to Tulum’s prized white sands. A community like nothing I have seen in Tulum… Plans include a beach club and shuttle from the community to both the beach club and Tulum town. As well as a rooftop terrace with infinity pool overlooking the national park and with views to the Caribbean. Thanks to our RETA discount, I expect our entry price will be sub $200,000. On the Pacific Coast, in the resort town of Puerto Vallarta, I expect to bring RETA members condos with sea views and members-only discounts of up to $70,000. And in Cabo, where I own myself, I’m close to finalizing a deal on codos with stunning views of the flat, azure waters of the sea of Cortes, just outside the town. The two-bed, two-bath condos will have big terraces that make the most of these views. And come with an entry price of $198,000. If you’re not yet a RETA member, you can join here today. Connect with Ronan on Instagram |
