If you are thinking of investing in French property to lease it as a Chambre d'Hôte (B&B) or holiday gite, check out the wide choice of buy-to-let properties - sumptuous villas, semi-detached bungalows, elegant manors and country houses - on the market.
Golf courses, vineyards, large equestrian estates and cosy hunting lodges in the French countryside are ideal investment properties, while buildings, conference halls and office complexes in fashionable French cities like Paris and Marseille are snapped up as soon as they come onto the market.
On the glittering Côte d'Azur, magnificent beachfront mansions and resorts sell quickly, similarly in the French Alps, luxury ski-in ski-out chalets are very popular with the sporty and apres ski set.
Trends show that while investors of all nationalities invest actively in French property, Chinese, British, American and Scandinavian property buyers top the list of property investors.
Why invest in French property
- Some of the reasons why investment property in France is a favorite with international investors are:
- A booming French economy (ranked fifth largest in the world), stable property market and annual appreciation of French real estate at approximately 10% per annum, guaranteeing buyers a fine return on investment.
- France is a central, well linked European hub and a culturally rich country, whose art, luxury fashion, magnificent Mediterranean coastline and historic buildings attract crowds annually from across the globe.
- Excellent net rental yields of around 7% to 10% and popular leaseback schemes providing tax benefits and assuring a high rental income.
- No capital gains tax if you sell your French investment property after 15 years.
If you are from the UK, check out the France-UK double tax treaty.
Tips for investing in French property
Prior to investing in French property, ensure you conduct in-depth research of the property market. A locally-based estate agent would be able to provide a fairly good insight and this knowledge goes a long way in enabling you to assess the return on investment (ROI) as well as inherent risks.
In France, among the efficient ways of investing in property is to make sure your buy-to-let mortgage is one which benefits you long-term, you have a clear understanding of applicable taxes and you have made a fair calculation of the expected rental yield.
Purchasing an investment property in France in a popular holiday destination, a flourishing city or a town, known for its educational institutions and transport facilities is a great way of ascertaining a steady rental income and a high return when the investment property is sold.
Finding an investment property requires time as you need to visit several areas, chat with locals for a deeper understanding of the area’s prospects and hidden gems, search on various forums and look through numerous property websites.
For any assistance you may require in locating and purchasing your dream investment property, contact Winkworth International.
Winkworth International has a comprehensive portfolio of quality French buy-to-let properties and we would be happy to mail you a brochure of our portfolio of French investment properties, to arrange a property visit and to provide you with any other assistance needed while investing in a property in France.
This information is for guidance purposes only and is subject to change. Winkworth recommend that prospective buyers or sellers of foreign property obtain professional legal advice.