IRISH people are still buying on the French Riviera – generally, they’re people who don’t need a mortgage. But more Irish people are selling up – and although prices there have held up well, many Irish sellers are finding it difficult to get their money back, especially if they bought in the last five years or so.

The reason is the high property transaction costs in France. Buyers pay approximately 7.5 per cent in legal fees, while sellers are hit for a minimum of 6 per cent – and sometimes up to 10 per cent – on the selling price. In addition, foreign sellers face the costs of translators and numerous statutory reports on everything from termites to energy efficiency, which can easily add a further thousand euro and more to their costs.

The result is that a property bought a few years ago for, say, €300,000 and sold now for €330,000 would have buying and selling costs of up to €45,000, leaving an overall loss of €15,000. And thats apart from any redecoration and other costs incurred. Such losses, of course, pale into insignificance compared to buy-to-let losses at home and, at least, there is no difficulty in selling in France, according to Cannes-based Irish agent Hilary Larkin (info@hilarylarkin.com).

“A good property at a realistic price will find a buyer,” she says. “The usual problem is that people over-estimate the value of their property and try to recoup their full outlay, including estate agents’ fees, notaire’s fees and all the other costs of buying and selling.

“Unfortunately, a lot of Irish people who bought during the boom overpaid, as they thought they were getting a bargain compared to Irish prices.