With the downturn in pensions and other more traditional methods of investing, more and more people are turning to bricks and mortar and French leaseback schemes have helped take the hassle out of owning buy to let property for many.
Uncertainty in the UK property market is leading to more investors turning to foreign markets for their property purchases. Whilst there is currently a trend in eastern European “developing” markets, these markets have little history and present a risk to many investors.
France is an attractive alternative and being located just across the channel makes it a practical choice. Prices are still rising and interest rates are low making it ideal for those wishing to finance their purchase through a mortgage. The French property market has experienced an increase in prices of between 50 –60% over the last five years (source: Laviefinanciere.com) and according to the INSEE 320 000 lodgings must be constructed each year from 1999 to at least 2020 to respond to sociological demands in terms of housing in France.
It is however, important to purchase the right kind of French property in right place to ensure that your investment will stand the test of time. Just because prices are rising does not mean potential investors are guaranteed that their property will rise in price but French Leasebacks are excellent choice.
Reproduced by kind permission: © Your French Property 2004
Areas of France for Investment
France is divided up into regions – such as Brittany, Aquitaine, Limousin – and then sub-divided into over 90 departments (such as Finistere, Dordogne). Some regions and departments are more popular than others for long-term rentals or holiday lets. So Paris, Cote d’Azur, and ski areas in the Rhone-Alpes are good areas for income.
Historically, these areas also have good capital appreciation (sidebar: prices have been affected by the financial crisis). Right now French prices reflect a buying opportunity if historical trends are repeated.