Consider France as a Property Investment
Parmdeep Vadesha
July 02, 2008
From luxury investment spots like Cannes, Frejus and St. Tropez to the winter slopes in the French Alps, property in France is highly diversified. You can invest in a luxury villa or apartment and gain a lucrative profit from a combination of rental sales and capital appreciation.
Many areas in France have a great potential for property investment. Depending on your budget and needs, there are various schemes to choose from for investing in French property. Thus, prime properties in France can be purchased at prices well below market price.
One option is buy to let, which is where an investor purchases a new build or refurbished property and leases it to a permanent tenant, thus earning rental income on a monthly basis while the property goes up in value. With property prices in many areas of France much lower than in UK, many Britons are considering French property as an investment by purchasing houses and apartments and earning from the rental income. In some cases investors purchase these properties off plan. Despite the fact that you are purchasing into a yet-to-be-constructed property, buying off-plan offers the least cash shell-out and at a very competitive price in most cases. Furthermore, buying off-plan means that the property will be brand new, thus making maintenance and running costs minimal while offering excellent rental and resale profitability.
Yet another option is investing in reversionary property, which an increasing number of people are considering as a good alternative investment. Property is purchased from an elderly homeowner at a highly discounted price, with the usual arrangement being a payment of a minimal lump sum and monthly annuities in exchange for ownership of the property when the homeowner dies. The price depends on the age of the property owner, the location and other characteristics of the property.
Finally, a more popular investment scheme in France is the leaseback. Introduced by the French government more than 20 years ago, leaseback property is geared more towards the tourist destinations and holiday accommodations. With leaseback, an investor purchases a property, usually in a "Residence de Tourisme" (Tourist Residence) or "Residence avec Services" (Residence with Services) and earn a guaranteed monthly rental income. Leaseback properties are available all throughout the major tourist areas of France – from Brittany to Provence and the provinces in between. Most of these villas or apartments cater to short-term lets and offer a variety of services and amenities such as a swimming pool, Jacuzzi, sauna and laundry and linen services.
France is a certainly a favourite site of UK property investors. Hardly surprising, the current trend among buyers of French property is the tourist destinations and ski locations, for example Meribel and Courchevel, despite their relatively high prices. People continue to invest despite the high property values since rental yields have remained consistently high, especially in well-established resorts. Furthermore, France is fast becoming a popular place for British expats. With the faster Eurostar rail services to and from London and the future lower costs of airline routes, buying a property, setting up a second home or relocating to France has never been faster and easier.
Many areas in France have a great potential for property investment. Depending on your budget and needs, there are various schemes to choose from for investing in French property. Thus, prime properties in France can be purchased at prices well below market price.
One option is buy to let, which is where an investor purchases a new build or refurbished property and leases it to a permanent tenant, thus earning rental income on a monthly basis while the property goes up in value. With property prices in many areas of France much lower than in UK, many Britons are considering French property as an investment by purchasing houses and apartments and earning from the rental income. In some cases investors purchase these properties off plan. Despite the fact that you are purchasing into a yet-to-be-constructed property, buying off-plan offers the least cash shell-out and at a very competitive price in most cases. Furthermore, buying off-plan means that the property will be brand new, thus making maintenance and running costs minimal while offering excellent rental and resale profitability.
Yet another option is investing in reversionary property, which an increasing number of people are considering as a good alternative investment. Property is purchased from an elderly homeowner at a highly discounted price, with the usual arrangement being a payment of a minimal lump sum and monthly annuities in exchange for ownership of the property when the homeowner dies. The price depends on the age of the property owner, the location and other characteristics of the property.
Finally, a more popular investment scheme in France is the leaseback. Introduced by the French government more than 20 years ago, leaseback property is geared more towards the tourist destinations and holiday accommodations. With leaseback, an investor purchases a property, usually in a "Residence de Tourisme" (Tourist Residence) or "Residence avec Services" (Residence with Services) and earn a guaranteed monthly rental income. Leaseback properties are available all throughout the major tourist areas of France – from Brittany to Provence and the provinces in between. Most of these villas or apartments cater to short-term lets and offer a variety of services and amenities such as a swimming pool, Jacuzzi, sauna and laundry and linen services.
France is a certainly a favourite site of UK property investors. Hardly surprising, the current trend among buyers of French property is the tourist destinations and ski locations, for example Meribel and Courchevel, despite their relatively high prices. People continue to invest despite the high property values since rental yields have remained consistently high, especially in well-established resorts. Furthermore, France is fast becoming a popular place for British expats. With the faster Eurostar rail services to and from London and the future lower costs of airline routes, buying a property, setting up a second home or relocating to France has never been faster and easier.
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