Investment properties in France
Demand for investment properties in France remains
high. With a stable property market aiming long term
France enjoys sustained demand on the part of
investors. Primarily meeting the needs of its own
people the property market is on the whole unaffected
by trends and fashions. A less speculative market
than in the UK and traditionally more conservative it
provides sustained capital growth and reliable rental
potential. French people still rent as much as they
purchase their main home. There is ongoing demand for
high quality long term rental homes and these
investment properties in France generate good
reliable returns.
As far as investment properties in France are
concerned several main stream options are available
to the purchaser: Leaseback properties and
Seasonal letting or residential letting.
Leaseback as investment properties in France
The French leaseback scheme is a government
initiative to encourage and promote both investment
and tourism in France. It is a national scheme
overseen by the French minister of tourism and offers
the assurance of government regulated contracts and
financially bonded developers.
The substantial incentive of leaseback property in
France is 19.6% VAT refund. This is a real benefit,
as the VAT is often pre-financed by the developer,
meaning an immediate saving for the buyer on the
property purchase price. In addition, leaseback
property in France is sold fully furnished. A
leaseback scheme normally runs for 20 years with the
initial lease drawn for 9 years. Leaseback properties
are attractive investment properties in France as
they normally offer a guaranteed annual income
together with weeks of personal occupancy.
See our selected leaseback properties in France
Seasonal letting or residential letting
The seasonal letting season in France normally runs
from Easter to September. The French Alps region
differs in the sense that most locations enjoy dual
season potential. Holidaymakers are quite specific in
their requirements. Key elements such as location,
proximity to amenities, accessibility are important
factors when deciding on such investment properties
in France. French letting agencies (agencies de
locations saisonnieres) offer absent owners a full
management service. Management fees are deducted from
the rent paid to the owner.
See our selection of dual season properties in the
French Alps
Residential letting investment properties in France
would also require the key elements of location,
proximity to amenities and accessibility. Such
investment properties would normally be in urban
locations with good employment prospects. Residential
rental law in France is highly regulated. Residential
letting properties are governed by a lease or rental
contract called Le Bail. A Bail would normally be
drawn for a period of 9 years divided into three 3
years periods. The lease can be terminated at the end
of each single three year period. This type of
investment properties in France requires professional
management. There are rules on how the residential
lease can be terminated and it is important to
include all relevant provisions, clauses and notice
periods in the rental contract from the outset.
Professional residential letting agencies offer a
full management service would usually include the
tenant search, the drawing of the letting contract,
the property maintenance, the controlling of rent
payments, vacant property insurance etc. A management
fee is deducted from the rent paid to the owner.
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