French Property News – August 2019

78 French Property News August 2019 http://www.completefrance.com

COST CUTTER

Embarking on an exciting renovation? Get to grips with your

budget and turn your dream designs into a workable reality with

Louisa Heath’s cost-cutting tips

I

t’s a rare thing to find a dream

property that’s perfect in every

way, with most people having to

accept some sort of compromise

between location and property

layout/condition. If you’re

prepared to take on a property

renovation to achieve your goals,

it’s important to remember that in

some cases the cost of a renovation

can end up eclipsing the initial

purchase price. However, if you

put the sledgehammer down for a

moment and take a look at these

top tips, you can easily cut the cost

of your renovation.

Check your ambitions

It can be tempting to view a

renovation as an opportunity to

completely rework a property,

knocking down all the non-

structural walls (and some of the

load-bearing ones!) and

redesigning the entire floorplan.

However, work on this scale

inevitably comes at a cost. In an

ideal world, everyone would be

working with an unlimited budget,

but it’s important to figure out the

scope of the changes that you can

afford before you get started.

If you haven’t purchased a

property yet, try to factor in the

likely scale of the changes you’d

want to make when making an

offer. There is little worse than

embarking on a major renovation

only to run up against financial

constraints halfway through,

leaving you with a home that

might not even be in a liveable or

saleable state anymore.

Make sure you prioritise the

most important aspects of your

renovation, especially those which

would make it hard to live in the

property while they’re ongoing.

Once the more dramatic

alterations are out of the way, you

can save on potential rent and

travel costs by moving in while

you work on the more minor

renovation work.

Budget effectively

At the end of the day, if you want

to cut costs on your renovation, it’s

essential to start with a budget. If

you only have a rough estimate of

what you want to spend or what

you think the renovation will end

up costing, you won’t be in a very

strong position when it comes to

cutting costs during the build.

Unless you start your project

with a careful budgeting exercise,

planning out exactly how much

you aim to spend on everything

from materials to contractors,

you’re at risk of seeing unexpected

costs running away with a lot of

that estimated budget.

Try to build contingency funds

into your initial project budget and

weigh up which things you

absolutely need to splash out on. If

it’s essential for you to have that

cast iron bathtub, be prepared to

spend a little less on those new

kitchen fittings. A carefully

planned budget means balancing

out the luxuries you don’t want to

do without with the areas you’re

prepared to spend a little less on.

Lock in your budget

When you’re planning a budget in

advance of your French property

purchase, there’s another

important factor to take into

account – how you plan to move

your funds to France.

If you’re moving your money

from the UK to France to pay for

your renovation, you’ll be entering

the world of currency exchange,

and it’s essential to bear in mind

how much exchange rates can

fluctuate. Between the day when

you planned out your budget and

the day when you transfer your

funds, the GBP/EUR exchange

rate may have moved dramatically.

This doesn’t mean that you have

to build in a potential drop in the

value of your pounds into the

budget though. If you get in

contact with a reputable currency

broker, you can take advantage of

a service known as a forward

contract. For a small up-front

deposit, you can lock in the

current exchange rate for up to

two years in advance of making a

transfer. This means that the

amount you receive for your

transfer is set, and you don’t need

to worry about the potential

impact of exchange rate

movements in the future.

Shop around

One of the best ways to keep costs

down on a big project is to seek

out multiple quotes for any work.

While one contractor may offer

you what looks like a reasonable

price, you’ll never know that you

can’t get better unless you ask

around for alternative quotes.

Even if the first firm you ask ends

up being the best, there is nothing

to lose from getting multiple

options at the start.

When it comes to the furniture

and fittings that are going into

your new property, it’s easy to get

attached to a specific product.

However, while there are some

unique designs that you won’t be

able to find anywhere else, it’s

more cost-effective to have a look

at comparable products on sale

elsewhere. You’ll probably be able

to find something that looks

similar but costs a lot less, or you

Louisa Heath is a currency analyst

at TorFX

Tel: 0800 612 9625

torfx.com

EXPERT ADVICE

© Sxxxxxxx– iStock / Getty Images Plus

might even find the exact same

product on sale for less at a

different outlet.

Shopping around for vintage or

second-hand furniture is another

easy cost-saving exercise, with

many furnishings likely to only

need a little sprucing up in order

to look as good as new. Rather

than ordering a brand new

kitchen, you could also save a lot

of money by picking up a

showroom’s ex-display instead.

With new kitchen models regularly

installed on showroom floors, you

could get a relatively up-to-date

kitchen at a discount if you have

the patience to wait just a little

longer for it.

Moving money

While it’s easy to anticipate the

costs of certain essentials, such as

paint or furniture, there are a

number of hidden costs that may

catch you out along the way. One

of the main ones to watch out for

relates to transferring your money

from your UK bank account to

your French one.

Your bank may charge you a

standard fee on any international

money transfers, something which

could potentially cut into the

funds you have for the renovation

• particularly if you’re moving
  money abroad on a regular basis
  rather than in a single lump sum.
  However, some currency brokers
  don’t charge transfer fees – so
  you’ll make immediate savings.
  They can also help you secure a
  more competitive exchange rate
  than your bank and give you
  access to expert support and a
  range of specialist services. 

Paperwork power: How to

set up accounts for your

French property

completefrance.com/

french-property/law

MORE

ONLINE