property investment in france

Buying Property in France is an excellent Investment

The jury is still out on what is going to happen to property prices in the UK. Price increases have been very slow over the past 12 months and where they occur are limited to specific areas. Add to this the recent credit crunch and high cost of borrowing and the market looks a little unpredictable.

So where do you invest? The stock market over the last few years has proven to be a very unreliable source of investment, especially for those who invested their life's savings in pension funds only to be told that they were to expect a fraction of what they had expected. People are increasingly turning to other forms of investment, the most popular being property, with a large number going abroad to secure their nest egg. The added bonus with a property as supposed to the stock market is that you can actually use what you have bought and enjoy it!

In fact Paris was 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 PricewaterhouseCoopers. They took into account economic stability as well as potential capital growth and it was deemed to be the best place to invest for the next 2 years. Click on the link below for the full article-

Where to invest in Europe

Why invest in France?

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 4% and now offering 100% finance for foreigners
Government backed “leaseback” Investment property with guaranteed yields up to 5.5% (which more than covers mortgage interest)and full VAT refund of 19.6%
France is the number 1 tourist location in the world and demand consistently exceeds supply of tourist accommodation thus ensuring good and reliable rental yields
Capital increases have been very healthy in France over the last five years with 100% capital increases in property in many locations across the country and average growth of 10% in 2005 (source FNAIM)
A proven and existing exit strategy: Unlike any other tourist destination France does not rely on foreigners for investment in their property as 95% of property sales are to French residents who constantly purchase holiday or permanent accommodation. This means there is a proven resale market when the time comes to sell up and cash in on your investment
An investment you can enjoy: with such fantastic weather, wine, food and culture you can choose to use your property a few weeks a year and really enjoy it whether it is in the Mountains, beach or countryside
Double tax treaty between France and the UK so you will not pay tax twice on earnings
All your costs including your mortgage can be set against your rental income so that a very minimal amount of tax is actually paid

Investing in property in France has done particularly well over the last 10 years or so and is expected to continue to be a hotspot 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 click on the link below-

Overview of property market performance in France

You may not want to completely relocate to France but simply have a second home there for holidays and wish to rent it out for the remaining periods. On the other hand this may purely be an investment and you may wish to rent it out all year round. We can cater for both situations as our estate agency network constantly engage in both types of rental contracts for the French and English alike.

Your Personal Investment Analysis (PIA)

At Leapfrog Properties we understand that people are individuals and therefore have differing needs from their investment and what might suit one person may be completely wrong for someone else.

Our trained and experienced consultants analyze these needs carefully to produce a bespoke pacakage that suits you. For example if you are an active investor and like to be able to liquidate your assets quickly to take advantage of new property hotspots or other investment vehicles then your needs will be different from the long term buyer looking for an investment with a view to using it personally for a number of years.

Why not book a totally free, no obligation PIA with one of our consultants and find out what works for you.

Book your PIA

Search for your property investment in France now

France is the safest place in the world to buy property

SIPPS in France after 5th April 2006

How to buy French leaseback property using your pension money