Is building then selling in South of France a good idea??

[busgrw]

Hi all,

Originally I was planning to build a villa in the South of france somewhere on the French Riviera so that I could use it as a holiday home. Now though, I am actually keen to see if I can make a business out of it where I would build a villa and then sell it on for profit in the hope that I can eventually move out there for good.

Can someone please give their opinion / advice on whether or not this plan could work especially in this economic climate. My thoughts are that the French Riviera will not be affected as much (if at all) given the demand for property in this area.

Thanks.

 

[sextant]

Investing in a French Property

In view of the current world crisis, it is true that the good idea for those who desire to put their money somewhere safe is certainly to invest in a property. I don't know about building and then selling, but I can advise you on buying and renting out a property in South of France. As you said, it is certainly a good idea to make money in the long run and it is also true that this part of France may face the crisis better than others.
You could for instance invest in a Leaseback property. This will indeed enable you to go on holiday in Souther France but also to rent it out the rest of the year. Don't hesitate to ask for more information by answering below!

 

[rowlandsbb]

I do not want to teach you to suck eggs but......in property it is location, location, location even now in all this economic mess!!!
Naturally once you have found the location you have to have the skills to exploit it, if you are a dealer

So if you know what you are doing. now is probably as good as any to start looking for the good deal

South of France is expensive but there will be opportunities and the same applies to Spain

Also for life stylel buyers rather than investors/ dealers there are good opportunities to find that home you dream of and a good price just now

Parts of Spain are much cheaper than France and the weather in winter is better!

 

[busgrw]

It sounds like you both think it is a good idea then regardless of the economic climate which is what I thought. The fact is that if I was to secure land in the next few months it would take about another year to build it and by the time that happens the market should have a more favourable outlook.

Sextant, thanks for your advice. Unfortunately i'm not looking for a leaseback (although 6 months ago things might have been different) as my intention now is to completely escape the hustle and bustle of the UK for a better life on the Riviera so i'll be makng a permanent move out.

rowlandsbb, I agree with your advice regardging Location Location Location and I think i've found the right location to search in so that's a good start. Hoping to head out early December to start the plot search!

 

[rowlandsbb]

Land in France

It sounds like you both think it is a good idea then regardless of the economic climate which is what I thought. The fact is that if I was to secure land in the next few months it would take about another year to build it and by the time that happens the market should have a more favourable outlook.

Sextant, thanks for your advice. Unfortunately i'm not looking for a leaseback (although 6 months ago things might have been different) as my intention now is to completely escape the hustle and bustle of the UK for a better life on the Riviera so i'll be makng a permanent move out.

rowlandsbb, I agree with your advice regardging Location Location Location and I think i've found the right location to search in so that's a good start. Hoping to head out early December to start the plot search!

In your budget assume the worse case scenario....a slow sale time.General view is that the market will not pick up until late 2010 ..then if you do get a quick sale it is a bonus
Make sure that you follow all planning and building regulations and do not cut corners
Good luck

 

[busgrw]

In your budget assume the worse case scenario....a slow sale time.General view is that the market will not pick up until late 2010 ..then if you do get a quick sale it is a bonus
Make sure that you follow all planning and building regulations and do not cut corners
Good luck

What do you mean "in your budget assume the worse case scenario....a slow sale time". Would the sale time differ significantly depending on the sale price at the moment?

As for following all regulations, we will be doing everything by the book on this one - qualified architects and builders, CCMI contract etc. Our thoughts are that for a little bit of extra cost getting the right people we can save money in the long run. Still trying to find those right people but hopefully that will all come.

 

[rowlandsbb]

I think that you have to accept that no one knows how the market in property in the EU will be in 12 months time so in these circumstances it is better just now to allow for the sale to take quite a long time
It all of course depends on the local market and you may pre sell and the time of the year that you complete the build may make a difference
Eg : if you compete the build say late October then in many markets it may be early spring of the following year before you get a lot of interest [ in general less buyers about between November and March ]

 

[busgrw]

I think that you have to accept that no one knows how the market in property in the EU will be in 12 months time so in these circumstances it is better just now to allow for the sale to take quite a long time
It all of course depends on the local market and you may pre sell and the time of the year that you complete the build may make a difference
Eg : if you compete the build say late October then in many markets it may be early spring of the following year before you get a lot of interest [ in general less buyers about between November and March ]

Thanks for the advice Rowlandsbb. Appreciate it.

 

[jazzy06]

What will make a huge difference in selling fast is a well designed and build villa. In this tough market you need a competitive edge over all the other properties for sale in the area. It can't be the same boring house just like the neighboor next door. A premiere location put together with a "jaw dropping" property will give you a huge advantage over any market and people would pay big bucks for it. You can make a realistic rendering and market it way before it's even built to create an anticipation of what's coming. You also have to decide before hand what kind of clientele you are trying to reach. Also publicating it in high end magazines and entering it to win different awards helps with spreading the word and making it the "buzz of the town". I know an architect and builder that would be perfect for this who works on high end luxury residential and exclusive water front properties. His name is Martin Smargiassi of Innovative Collaborations 617-695-3777. You can give him a try.

 

[busgrw]

What will make a huge difference in selling fast is a well designed and build villa. In this tough market you need a competitive edge over all the other properties for sale in the area. It can't be the same boring house just like the neighboor next door. A premiere location put together with a "jaw dropping" property will give you a huge advantage over any market and people would pay big bucks for it. You can make a realistic rendering and market it way before it's even built to create an anticipation of what's coming. You also have to decide before hand what kind of clientele you are trying to reach. Also publicating it in high end magazines and entering it to win different awards helps with spreading the word and making it the "buzz of the town". I know an architect and builder that would be perfect for this who works on high end luxury residential and exclusive water front properties. His name is Martin Smargiassi of Innovative Collaborations 617-695-3777. You can give him a try.

Jazzy06, thanks a lot for the post. You and seem to be on the same wave length as I am deep in the process of finding the making sure I find the right designers and builders to ensure that the villa is at the top end of architecture and built to the finest quality.

I will definitely be placing the property in high end magazines (can you recommend any) but the awarding winning approach is a new one to me and it sounds like a really good idea. Any thoughts on how I would go about entering it in for awards?

I'll be sure to get in touch with Martin Smargiassi as a recommendation is better than choosing a random architect.

Thanks.

Busgrw

 

[jazzy06]

I don't know any magazines of the top of my head but I'm sure that you will find very high end local magazines and even international if you do your homework before hand. As far as the awards go, usually it's the architect who enters it for awards and competitions that way gets a lot of attention in the architecture world and eventually you can use that as a catch line in your marketing. Also you need to get a very experienced real estate agent who has a lot of connections with very wealthy clients. I strongly agree with Iain as far as location and building a spectacular property. I think it comes down to the architect doing a superb job.

 

[busgrw]

Hi Busgrw,

This will only work if you build something spectacular in a very high profile location such as Monaco, Cannes, St Tropez, otherwise you will be wastin gyour time.

Regards,

Iain

Hi Iain,

Thanks for your feedback. Can I ask why you think I would be wasting my time? Can it be that someone can buy a plot of land, build on it and for the finished article to be worth less than what they paid to build it in the first place?

Thanks.

Busgrw

 

[busgrw]

Yes, your problem will be that if it is not in a very strong location then there will b e no demand for it and you will end up haveing to sell it for a loss. Through experience our clients who buy properties in the French Riviera always demand location, location, location. There are a lot of people in the area with serious amounts of money and they will not go for something that is not spectacular.

Iain

Appreciate the advice Iain. I'll just have to make sure that I get the Location, location, location right!

Busgrw

 

[odond]

Apparently certain locations such as Nice, CAnnes, Antibes will always keep a certain value and resale is not a problem. Idem for very prestige locations, regardless of the crisis the very rich are still buying!

Deirdre

French Property Ireland