Budgeting for a Vacation Home Abroad

Welcome to part-two on the cost of a vacation home in Europe, where I continue to break down the cost of purchasing and maintaining my second home in France. If you missed part one, you can read it here.

While exchange rates fluctuate, for the costs outlined here, I’ve converted Euros to US dollars based on the current average EUR to USD exchange rate of 1.07

Setting up a household

Having a second home anywhere means duplicating all the necessary household and decorative items you have in your current house — and then some. Luckily, France has plenty of second-hand shops and leboncoin, which is the equivalent of Craigslist in the US. And what could be more fun than decorating your home with treasured finds at community yard sales (called vide greniers) and brocante sales (flea markets and antique fairs). Plus, there are plenty of Target-like stores selling reasonably-priced home goods and décor items.

The couple I bought my house from were moving back to the UK and left a lot of their furniture and household items. This was both a plus and a minus. It meant I didn’t have to rush out and buy new furniture, however I did immediately buy a new IKEA queen-sized bed and mattress.

Slowly I’m swapping out the oversized furniture with smaller, more delicate country French pieces that better suited to the cottage and my style. Several old sofas and overstuffed chairs were hauled to the local dump, called “la déchetterie.” In total I’ve spent close to a thousand dollars in truck rental and hiring helpers with a trailer to make multiple trips to la déchetterie. Some of the furnishings and smaller items I’ve given away or donated to the local thrift store.

I recently found the perfect-sized dining table at a thrift store for 30 Euros ($32) and sold the oversized one to a friend for the same price. I bought a white slipcovered sofa at IKEA. And I’m now on the hunt for a classic French coffee table.

When I moved in, it was nice to have a place to sit, a table to eat at, and outdoor furniture too. And having pots, pans, silverware, glasses, dishes and more was a real plus. However, if you buy a place that’s completely empty, you'll find beautiful dishware at thrift shops and yard sales at incredibly low prices.

I don't know the exact total for what I've spent on household items and furniture, but so far I’ve spent $4,853 at IKEA. I’ve probably only spent $150 at thrift shops, around $800 at other home goods stores and $280 for a battery-powered lawnmower. That comes to $6,083. I had budgeted $10,000 for furniture and household items, so I still have money for additional furnishings.

Maintenance, repairs and remodeling

If you purchase a house versus an apartment, you’ll need someone to maintain the yard and gardens while you’re away, and you'll need to budget for ongoing repairs. You might also want to have someone clean your house regularly or at least right before you arrive. I have a regular handyman/housecleaner/gardener who comes around 16 hours a month and charges less than $20 an hour. I’ve also hired extra help with yard work for around the same hourly rate. Additionally, I’ve budgeted an extra one percent of the purchase price for ongoing repairs and replacements.

You can also hire a property manager to check on your property starting as low as $55 a month just to enter your home once a month. Or have a neighbor check in on your place. I’m currently undergoing substantial renovations on my house and gardens. I’ll leave those costs for a future post. I will say, I’ve found the cost of construction and labor to be around 30 to 40 percent less than what it is in Portland, Oregon. After all, you can buy a newly built, 1,000-square-foot house in my area of France for less than $200,000.

Travel costs and travel insurance

Having a vacation home abroad can mean potentially greater travel costs, but not necessarily. See my post on ways to minimize your travel costs, and pay next to nothing for international airfare.

You’ll also need travel insurance. I use World Nomads and pay an average of $120 a month for a three-month period with their standard policy.

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Total cost

Here’s my total annual cost for maintaining a second home in France, not including my car, airfare or furnishing the house.

• Electric                                                  $1,935

• Water                                                    $ 478

• Trash                                                     $ 152

• Firewood                                               $ 210    

• Internet, cell phone, TV and landline     $ 852

• Tax foncière                                           $ 867

• Taxe d’habitation                                    $ 867

• Home insurance                                     $ 740

• Bank fee                                                $ 132

• Gardening and cleaning                         $3,084

• Maintenance and repairs                        $1,920

• Travel medical insurance (5 months)      $ 500  

Total: $11,737 a year or $978 a month.

If that still seems like too much, remember a second home can be a source of income if you make it a short-term vacation rental. Another option is to list your European getaway with a home exchange service. With the points system you don’t have to do a direct exchange. Let someone stay at your home while you’re away and you’ll build points you can use for vacationing anywhere in the world. 

Things you can’t put a price tag on

A European second home can offer a more affordable getaway, but the benefits are so much greater. While having a vacation home in the US means returning to the same location, a second home abroad provides a comfortable base and a gateway for exploring all of Europe, especially if it’s near good transportation links.

That was one of my main priorities when looking for a home in France. Having a train station I can walk to allows me easy access to major cities, including Paris, which is only two to three hours by TVG fast train. Europe has an excellent train system and budget airlines provide an economical way to explore European cities.

In many parts of Europe you won’t need a car. And if you do, there are plenty of used cars on the market. You’ll be glad to know car insurance in France for my 2021 Renault Clio is $642 a year, one fourth of what I pay in Portland, Oregon.

The true return on investment in a home in Europe can’t be quantified in dollars or Euros. Having a home in France is an opportunity to immerse myself in the day-to-day life and culture of another country. It’s brought new friendships and the opportunity to meet people from all parts of the world. And those experiences are priceless.