... to spend my inheritance on a house in France?

[CurlyWurlyHurlyBurly]

An elderly relative has died and left their estate to me and my siblings equally. As a result I am getting an inheritance of around £30K. I currently live in rented accommodation along with my DH and 2 DC and we will probably never be in a position to buy within the UK.

My idea is to buy a small property in the Dordogne region of France (an area we have family links to) and relocate over there. Our budget is small but we could manage it. We nearly moved over there a few years ago, but finances didn't quite work out at that time so we stayed in the UK.

DH's idea is that we use the inheritance to clear our loan/credit card balance, invest some in the highest interest savings we can and spend some on "fun" stuff.

I feel slightly resentful about his plan as he is a spendthrift, and most of the loan/credit card debt has been for his benefit, and his idea of "fun" stuff includes a motorbike for him.

So, AIBU to tell him that I have thought about his suggestion but I still think buying a house in France should be the way forward?

[Branleuse]

if i had 30k and had to put it as a deposit for a uk house where it would only be a small fraction of the actual cost, rather than an actual house, albeit a doer-upper in the dordogne,i think id die a bit inside

[mamapants]

I think I'd go for using it as a deposit in the UK .Then you can both still work and kids go to English speaking school.
You are currently paying rent so could afford mortgage repayments and 24k is a decent deposit

[Branleuse]

op has family connections to the Dordogne dont forget.

[KenAdams]

Why wouldn't you just use the £30k for a deposit on a house here?

[ImperialBlether]

I was completely wrong about the size - I'm an idiot. I was thinking it was 70 sq ft!

Sorry!

[TwistInMySobriety]

Gizzy, it's only 70 sq m! They'd have to sit on top of each other!

It's small but not that small. I used to live in 24 m² a few years back!

[WhirlyTwos]

Why, thankyou Seriously



OP, maybe you can tell us what part of the country you're in and how much you currently spend on rent? It might help build a picture of what's feasible.

[Seriouslyffs]

whirly is wise.

[WhirlyTwos]

Pay off the debt first, to avoid the compound interest. Use the remaining 24k as healthy deposit on a UK property. Live in the property for a little while, thus making it your PPR for CGT purposes.

Then you are in a great position to go to France, rent there, while renting your UK place out (having got mortgage co agreement to rent).

Let's you see if France is really for you without the risks of buying there, while getting a foothold / investment on UK property ladder.

win-win.

[LittleLionMansMummy]

My initial instinct was 'do it!'

But how old are your dc? We've considered doing this and I couldn't go through with it because I had concerns about education for our ds. Not that I don't believe he'd receive a good standard of eduction but I am not sure the French teaching style would necessarily suit him.

[Flutterbutterfly]

I checked you can buy a shell, which could be ok if your handy but you would need quite a bit for renovation and costs.

Look at the uk again...cheaper area.

[mijas99]

You wont get a house you or anyone else will want to live in for £30k

The reality is often very different to the dream

If you want to go to France then rent or go on holiday there

There is an obsession about buying. It wont make you money and you will end up living in a crap area.

[AndNowItsSeven]

I would buy in the uk , there are areas you can buy a house for 60-70k so 30k would be a large deposit.
Regarding the debt , you are a married couple all money coming in or debts are " family debt".

[Featherbluedot]

Maybe buy a flat you can afford, rent it out and hopefully get a small income from it.

[Flutterbutterfly]

You can't keep the money from your DH... It's family money!

However you an prevent him pissing it up the wall on a bike. I'd be surprised if you can buy a house in fance for 30k ( can you? I Might buy one, link anyone?)

If you can, buy one, it's a great plan. Otherwise you could relocate to a cheaper area uk and buy a small house with a small mortgage maybe.

[CaveMum]

Also bear in mind that there are rules in France about inheritance, capital gains tax, etc, that you'd need to look at carefully. DH has a relative (by marriage) that has family in France, they want to leave a house to her in their will but the inheritance laws are so complex (and tax for non-residents so high) that she'd be forced to sell it and actually have very little to show for it.

[frenchfancy]

Agatha is right. It is expensive to live in France. Social contributions are really high, the cost of doing business is prohibative, and living costs in general are high.

The days when you could buy a bargain house in France are long gone. If you find somewhere at that price it is likely to be in a dead village with no facilities, no schools and no work. Any house at that price will need considerable work doing to it. There is unlikely to be any insulation in the room, windows will not be double glazed, heating systems (if there are any) will be outdated and it will cost a fortune to keep warm in the winter.

[WayneRooneysHair]

I remember a thread where someone's husband got a £150k inheritance and he wanted to get a loft conversion and a train set using £30k of the inheritance, some posters were saying that it was family money etc and that he should not spend it.

[RedDaisyRed]

First if they might split up then p utting it in the chikldren's names is safe as Mr Big Spender cannot get his filthy mitts on the money if they split up.
If all is likely to be stable then yes usually repaying debt is wise but this might be the first chance ever to own a home.

What about using the £30k as a deposit to buy a flat and live in it in the UK? It might be your only chance to buy abnd there is no capital gains tax when you sell your own home in due course but there is if you sell this second property.

Ah Agatha has said what I said yes.

[AgathaF]

We have a holiday home in France that we let out to guests and also use ourselves frequently. I would say be very, very careful about buying there, whether or not you intend to relocate. As others have mentioned, the cost of living is higher than the UK, taxes are considerably higher. We've met many Brits who have moved over there thinking that their skills are transferable and workable in France, who've then found out that that is just not the case. Setting up a business there is a nightmare of red tape and dead ends. You ill be able to buy a house for £30k, but it will need work doing.

I would advise using the money as a deposit on a house in the UK, with the resulting mortgage being probably less than the rent you are currently paying.

[Weebirdie]

30k is nothing really and all the more so when buying a property abroad and all that comes with it is concerned.

How about you put the money away, just sit on it and tell your husband nothing is being done with it till all debts are paid off and he's sorted himself out financially? Though for the life of me I cant understand how anyone can consider a partners inheritance as something they have any say over, or any right to benefit from. The bit about 'doing fun things' is awful considering its highly likely the person who's died probably had to go without over their lifetime in order to be able to have a bit of money behind them.

[lottiegarbanzo]

I agree that you need a big chat with DH about money. He sounds like a spendthrift who habitually lives beyond his means and would fritter away any amount he had access to. The attitude that you should spend most of this inheritance on 'fun stuff' not 'sensible stuff' is very telling.

[CurlyWurlyHurlyBurly]

Thanks for all the responses. Definitely gives me some direction for thinking!

[WayneRooneysHair]

I'd pay the debts off first.

£30k isn't that much and you'll need more than that to buy a house, even in France.

[ImperialBlether]

Gizzy, it's only 70 sq m! They'd have to sit on top of each other!