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With all the hype surrounding emerging property markets such as those in Romania, Cape Verde, Estonia or Northern Cyprus for example, mass media focus has been deflected away from France investment property recently – yet all the while the appeal of the French real estate sector has remained strong.
The popularity of the investment property sector in France is underpinned by constant British and Irish interest and of those who buy France investment property the majority plan to spend at least some of their time in the house themselves and this is why sophisticated locations with fantastic infrastructure and superior accessibility such as France, rather than emerging markets such as Romania, remain so popular.
While the world has been looking the other way French investment property has been accruing constant and sustainable growth in the region of 10% a year and attracting strong rental yields in the region of 7% gross because the popularity of France as a tourism destination does not fluctuate.
Furthermore as accessibility across France has greatly improved and made even the more rural and outer-lying areas accessible from the major French cities which are all serviced by airports and main train stations, the appeal of France for those UK citizens looking for an affordable commuter-belt home or a house from which they can telework at least part time has intensified pushing up demand for property for sale in France to almost all time highs.
Those looking for more stable, albeit conservative growth in a country where there is no political instability or potential economic volatility and where demand remains equally strong for property for sale and rent year on year should remember France…
While the preference for buying a run down renovation wreck in rural France as an investment property has diminished substantially, interest in purpose built, brand new villa and apartment properties has intensified. Part of the appeal of such developments is the unique French Leaseback Scheme which enables anyone to buy a freehold property within either a Residence de Tourisme (tourism development) or a Residence avec Services (serviced development) and then earn a guaranteed level of rental income from the short term letting of the property to either tourist or corporate clientele.
While the leaseback scheme has been in evidence in France for about the last twenty years it is only recently that overseas investors have begun to realise the inimitable opportunity it offers. Those who make a careful purchase can usually cover any mortgage payments with the guaranteed income earned and then just sit back and have a hands free, capital appreciating asset in their portfolio.
France investment property as a commodity may
be slower to return capital growth than investment property
in certain emerging markets, but as an investment commodity
well located and facilitated investment property in France
is far lower risk and offers a more cautious investor a real
alternative that will go up in value and which can generate
a decent and sustainable rental income.
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