Why having a castle in France is not a good investment
It is now possible to buy a castle in France for a relatively affordable price. According to Business Insider, ancient properties are being sold across the country. The average cost of such a property is US$2 million, but there are options from as little as US$200,000. In addition, some owners of mansions are willing to give them away for free.
The active sale of castles is due to the high maintenance costs of this property. The annual fee is approximately 1.5% of the value of the property. If repairs are required, the price increases many times over. In addition, castles listed as historic monuments require additional investment. Only accredited specialists can carry out their restoration. In addition, there is a complex bureaucratic process for authorising repairs.
Buyers of French property
The French generally avoid buying chateaux. They understand all the difficulties involved. However, foreign investors are showing an active interest in these properties. The main buyers are US citizens, who have bought around 50% of the chateaux near Paris.
Experts note that foreign buyers’ behaviour is changing. While châteaux have traditionally been second homes, they are now increasingly regarded as primary residences. At the same time, buyers face the need to invest heavily in renovation. Most castles need major renovation, including the replacement of electrical wiring, flooring, and modern technology systems. Often, these properties do not have drainage or plumbing.
Special features of castle and other historic property ownership
French castle owners do not share the enthusiasm of foreign buyers. They are trying to sell an inheritance that requires a lot of effort and money to maintain.
In 2023, the supply of this type of property increased significantly. Sellers were offering properties at discounts of up to 25%. The reason for this was the crisis in the French market. In just one year, more than 100 castles passed through the market at an average price of around €880,000. At the same time, there are around 40,000 such properties in France.
The rapid sale of castles remains a rare phenomenon. This is due to the following factors:
– the reassessment of the value of the property by the owners on the basis of its historical value;
– the need for significant repair expenditure, which is often not specified at the time of sale;
– typical castle problems such as lack of modern drainage, mould and faulty plumbing;
– huge heating bills.
Business objectives drive the motives of US buyers. They buy a castle to make money from it in the future. A popular option is to rent it out to artists, writers or for private events. Some use castles as exclusive tourist attractions, offering private tours or organising weddings and other celebrations.