Allow for future expenses!

You have wisely calculated precisely the total of your monthly repayments… Before you finally commit yourself, don't forget to take into account your household expenditure, which is an additional expense. If you have not budgeted properly for it you may find that your family budget does not balance.

Take into account any monthly costs...

• If you are buying an apartment in a co-owned property, find out from the syndicate how much the shared costs are and how they are divided up.

• In any event you can also ask the vendor to provide a statement of - shared and individual - costs for the last two years.

• Don't forget to give some thought to heating bills: the cost will vary depending on the quality of the insulation, the type of energy used and heating method (shared or individual).

Assess what work will have to be done in the future.

If you are buying an apartment in a co-owned property, find out from the syndicate or owner what work has been carried out in the last five years, and ask for the minutes of the general meetings and what work is planned for the future. This will give you an idea of any investments to which you will have to contribute.

As a general rule, any work already agreed at the co-owners' General Meeting but not yet carried out, must be paid for by the former owner. However, you will be liable to pay in two cases:

• If it has been approved but the cost for each co-owner has not already been calculated.

• If a clause in the sale agreement states that the buyer will be liable for all costs from the date of signature of the final deed of sale.

Don't forget local taxes!

Every year, the tax authorities will bill you for the following:

• Property tax, payable on both land which has been built upon and other land, is payable by the owner of the premises on 1 January of that year, with no exceptions.

• Taxe d'habitation (similar to council tax in the UK and property tax in the US) is payable in addition, by the person(s) residing in the property as of 1 January.

• To calculate the amount of these two taxes, the tax authorities set the "rental value" of the property; this does not always reflect its actual standing. You should therefore ask the former owner, former tenant and neighbours to give you an idea of how much you will have to pay.

• In addition you will have to pay a household refuse collection charge and, in some communes, a road sweeping charge.

Mortgage costs

A mortgage is a guarantee with the bank issuing you the loan; the bank is entitled to seize your property if you cannot pay off the loan. The mortgage fee varies depending on the amount borrowed and the type of loan taken out. It can easily amount to several thousand francs (around 1.5 to 2% of the amount borrowed). You can perhaps avoid or reduce your mortgage fee by involving an organisation that will provide a guarantee that the lender will be repaid. But you should be aware that they do not act for just anyone, and you will have to show them a repayment plan! Some banks have agreements with these organisations. You can find out more from the local branch of the bank concerned or, if you are a public employee, from your mutual association.