Property Abroad |
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DIY your holiday home By Sam Barrett
As the British invasion of the continent continues to fuel property prices, it's not surprising that a growing number of us are choosing to buy a run-down property and transform it into the holiday home of our dreams. For DIY-lovers, hungry for a challenge, this is a great means of getting the type of property you might not otherwise be able to afford. The popularity of DIY holiday homes means the price of even the most run-down wreck has risen. However, Howard Farmer, managing director of property website 1st-for-French-property.co.uk, says if you're prepared to go off the beaten track there are still plenty of bargains to be had in France - the most popular destination for Brits in search of a rural retreat. He says you can still pick up a renovation project for as little as £6,500. "Areas like Calais and the Languedoc have seen huge price increases but if you look in areas such Champagne, Ardenne, Auvergne and Limousin you can pick up a bargain," he explains, adding that these areas are well-served by some of the budget airlines. Bargain hunters are looking further afield too. According to Simon Conn, managing director of Conti Financial Services, more of us are picking up renovation projects in countries such as Bulgaria and Croatia, where run-down properties can be picked up for under £4,000. "There are some very cheap properties in this part of Europe but make sure you take proper legal advice as you could do up a property and then find you don't actually own it," he warns. When you consider the impact of the cost of buying property on the Continent, the idea of buying a cheap wreck becomes even more attractive. For example, in France you can add a further 10% to the property price in buying costs, including a particularly unsavoury fee of a couple of percent to the estate agent. You also have to pay 5.5% in VAT on any work conducted on the property. The costs of buying in Spain, Italy and Portugal are slightly lower, but it's still worth setting aside an additional 10% of the purchase price to cover these. DIY abroad But however great your love of DIY and however cheap the property, before falling in love with a Tuscan idyll or a French farmhouse, it's worth finding out exactly what's involved. While cost will undoubtedly be one of the driving factors behind taking on a ruin - the biggest investment you'll need to make into an overseas holiday home renovation is time and patience. The time taken, to fight your way through all the necessary bureaucracy, for example can test even the most patient of people. Getting planning permission in the UK can be fraught with difficulties but throw in a different language and different legal systems and you can multiply the potential problems. James Bowman, director of estate agents Vibo Immobilier in Languedoc and the owner of a renovation project in Fitou, which is expected to be finished in time for Christmas this year, says that although it's not difficult to get planning permission in France you do need to prepare your submissions carefully. "In France you'll get a decision within three months, but make sure you've put in as much detail as possible to stand the best chance of it being passed," he says. He also recommends having a couple of meetings with the planning officers before you submit your application. "Meet them and get a name," he suggests. "This will improve your chances." Italian building regulations can be even more frustrating. Steve Emmett, chairman of the Federation of Overseas Property Developers, Agents and Consultants, explains: "The requirements have relaxed on internal work - you used to need to get planning permission if you wanted to change floor tiles - but you can still get problems." And don't even think about modernising a property. "You can't come in and put in big picture windows and balconies. The Italians want to be sure your work will be sympathetic to the original style of the property," adds Emmett. Local tradesmen When it comes to dealing with tradesmen, in France all work comes with a 10-year guarantee, which helps to ensure that work is of a high standard, with prices comparable to those charged in the UK. Likewise in Italy all trades are licensed so you can be sure of the quality of the work. So far, James has been very impressed with the work done on his property in France. "The people we've used have been incredibly passionate about their work, perhaps because of the guarantee, and they always work to a fixed-price contract, which is good," he explains. Actually getting tradesmen through the door in the first place, however, can be more of a challenge. Lead times tend to be long, especially for the good tradesmen or those with specialist skills such as masons. And location can add to these difficulties. Differing lifestyles can also come as a surprise to Brits renovating in France. Two hour lunches are the norm and the further south you go, the greater the likelihood that factors such as the weather and the wine will dictate working hours. Although this can be frustrating, Howard Farmer warns against bringing in British builders. "We do see a lot of people, especially in the north of France, using British builders but I wouldn't recommend this. They don't offer a guarantee on their work and you could hit a problem if you try to sell the property as most French people won't buy without one," he explains. The same is true in Italy. "Without a licence, you won't get a certificate of habitability," says Emmett. "And without this you won't be able to let your property." Going for a local builder will also ensure they have a good understanding of the area, its building peculiarities, other trades and the best suppliers. Additionally, supporting local tradesmen can also help you be accepted into the community more readily. Of course you do still always run the risk of dealing with cowboys. Giving up all your time to oversee your property renovation isn't always possible, but there are plenty of Brits out there offering this type of service. Naturally the more fluent you are in the local language, the better - not only will it help you manage the project, it will also help you establish relationships within the local community. Don't lose out with currency exchange When you are renovating a property every penny counts, so you need to make sure you don't get ripped off with currency exchange. Getting a bad deal on your holiday spending may cost you a few pounds, but on the purchase of a property it could cost you thousands, so it pays to shop around for the best exchange rates. If you are buying in Spain it's also worth finding out if the company handling your exchange has accounts in place that will help you side step the Spanish bank's receiving charges which can be as much as 0.5% of the sum transferred. And, if you'll be needing stage payments, as work on your property progresses, it may also be worth asking the firm whether they can fix the exchange rate for you to protect you from future currency fluctuations.
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