As property prices in the UK start to stabilise, an increasing number of buyers are looking abroad to invest. One of the places many investors have turned to is France which is regarded as one of the most visited destinations in the world. Last year alone, the world’s sixth economic power and one of the most open nations in the world had over 60 million visitors. France has also been one of the chief host countries of foreign investment for years. Invest in France Agency asserts that some 20,000 international companies have already selected the country as their business destination.
The country is currently enjoying an exceptional position as one of the best places for British second home buyers to invest in at this point in time, according to Property Finder France. Compared to other locations, many investors find that France is a better bet when it comes to overseas purchases. Figures from the Association of International Property Professionals reveal that 17% of all foreign properties purchased last year by buyers from the UK were in France.
According to industry experts, buying a property in France is no longer the domain of couples planning to retire. There is already a noteworthy number of first time buyers and young couples who are moving to France as the prices there are cheaper and the quality of life is better, says Property Finder France. Rather than scouting for areas in the South of France, these particular buyers are looking at metropolitan locations including the center of France, near Paris and the areas around them.
Experts note that even though house prices in the country are declining, deals are still available thus making France a popular option when it comes to purchasing properties overseas. It has also been able to keep its exposure to the sub-prime market at a minimum giving it a stronger position from which to weather the storm.
Buyers who are looking to buy French property investments are advised to take into account the country’s regional aspects as there are different areas that are doing better compared to others. It is recommended that potential investors thoroughly study an area they’re interested in, its trends and long-term outlook.
With average profits of 10% per annum and a thriving rental market presently giving investors profits of approximately 7% in some highly desired areas, a French investment property can provide investors a profitable and secure option. Propertyshowrooms.com provides some essential data that make investing property in France a worthwhile strategy
The country has a historically robust and secure market for property investors.
Residential property price growth for the long term is at a decent 10% (estimated) each year.
Net rental profits can be pegged at approximately 7-10% depending upon what you buy and where.
Of late, capital gains tax on housing has been halved to 16%. Property holders of more than 15 years are exempted.
It is apparent that France is a valuable market for property investors to invest in. With the soaring number of buyers heading there, property investors are advised to take action fast before the best bargains are grabbed. In addition to a beneficial market, investors are likewise assured by this established market where homebuyers and investors have similarly enjoyed strong profits on their investments over the years.