Receive exclusive news on investment opportunities.
Investment & Lifestyle Properties For You
Property Investment In France
Why Buy Property in France?
The jury is still out on what is going to happen to property prices in Ireland and the UK. Price growth has been negative or minimal at best over the past 12 months and where growth has occurred is often limited to specific areas. Add to this the recent credit crunch and the high cost of borrowing in the UK and the property market at home is looking a little unpredictable.
So where do you invest? The stock market over the last few years has had good gains, but has shown increased volatility over the last six months, so is not for someone looking for a solid investment. We are now hearing of people who invested their life's savings in pension funds only to be told that they were to expect a fraction of what they had long being expecting to have in their golden years. People are increasingly turning to other forms of investment, the most popular being property, with a large number going abroad to obtain security, renatl income and capital growth. As an added bonus with a property as supposed to the stock market is that you can actually make use of what you have bought and enjoy it for as long as you want!
Paris was recently named the number one location for investing in property in the world while Lyon was no. 5 in the world. These ratings were based on economic research and analysis by the Urban Land Institute (ULI) and Pricewaterhouse Coopers. They took into account many factors including economic stability as well as potential capital growth and it was deemed to be the best place to invest for the next two years.
Why Invest in French Property?
Considered to be the safest place in the world to buy property due to the rigorous buying process and protective legal system
Extremely low Euro interest rates with highly competitive mortgages currently capped at less than 5% and now offering 100% finance for non-residnets
Government backed leaseback property scheme with guaranteed yields up to 5.5% (more than covers mortgage interest payments) plus a full VAT refund of 19.6%
France is still the number one tourist location in the world and consistently demand exceeds supply of tourist accommodation ensuring good and continuous rental yields
Capital appreciation has been more than healthy in France over the last five years with capital increases of over 100% recorded for properties in many locations across the country and average growth of 10% in 2005 (source FNAIM)
A proven exit strategy: Unlike many other tourist destinations France does not rely heavily on non-nationals to buy their property. 95% of property sales in France are to French residents who consistently buy holiday and/or permanent accommodation. This leads to a proven resale market when the time comes for you to sell up and cash in on your investment.
Wherelese can you find an investment you can enjoy so much: with fantastic weather, excellent food and wine to be found across the country, and culture galore, you can choose to use your property a few weeks a year and really get the benefits of it, whether it is in the countryside, on the beachfront or in the ski resorts.
Double tax treaties are in place between France and Ireland/UK so you will not pay tax twice on rental income or capital gains.
You can reduce any tax liability by deducting interest payments for your mortgage and the cost of any work carried out on your property (keep your invoices!) against your rental income so you are left with a minimal amount of tax due.
Those who opted to Invest in property in France have done particularly well over the last ten years and France is expected to continue to be a major location for investors. To view statistics on capital growth in the different regions and cities in France and what sort of properties have faired the best, please contact us.
Maybe you want to buy an investment property now to generate a rental income, and consider using the property more in years to come, or perhaps it will always be an investment property to be rented out year round. Either way we can assist you in finding the property you are looking for as our contacts in the French real estate sector cover all of France and constantly help Irish/UK buyers alike fulfill their dreams of finding THE property for them in France to enjoy.
We are ready to assist you in whatever way we can.
