Reasons Property in France Remains an Investment Favourite

While a great deal of our emphasis at Amberlamb is on property investment approaches to take and potential to be realised in emerging countries around the world, we do include buyer guides for evergreen markets such as New Zealand, Canada, Spain and France because the ongoing appeal of countries like these often means that investor interest in such countries is also strong.

When it comes to France it is a very popular country for British based property investors to consider simply because it is just so accessible.  Recently Assetz have been reporting on the regions of France that they believe will do very well in 2007 and so while investor attention is focused on the other side of the channel we thought we should collate the reasons why property in France remains an investment favourite.

Accessibility

The fact that France can be reached by road, rail, air or sea from the UK means that not only can investors easily reach their real estate assets, the British public can reach France and rent out or buy resale properties held by British investors easily.

In recent years there has been a significant lift in the number of smaller airports across the whole of France being serviced by cheap flight operators.  The opening up and greater use of these airports means that even lesser discovered regions have now become hotspots with buyers.  According to Assetz Languedoc-Pyrenees in Southern France will be a popular 2007 investment destination – this region is serviced by Perpignan and Montpellier airports as well as Aeroport de Salvaza and Nimes-Garons airport proving that yes, the whole region is open for exploration.

Travel and Tourism

According to the Office for National Statistics Europe is the number one destination for British holiday makers with France the second most popular European country after Spain.  It receives around eleven million visits from Brits alone per year and is also a nation of great interest to holidaymakers from around the world.

France appeals to families, couples, individuals, old and young and it offers sun, sea and sand, culture, history, cuisine, entertainment and relaxation – in other words it is a nation with an unrivalled abundance of appeal which makes it an evergreen favourite.

For this single reason well located investment property in France remains a fantastic income earning asset year in, year out.

Mortgages and Finance

It is incredibly simple to raise a mortgage to buy a property in France – British lenders such as Barclays Bank have a strong presence in the nation and offer euro mortgages secured on the French property with interest rates that are usually lower than British sterling rates.  What’s more it’s possible to get a mortgage from a local lender in France too.  The wide choice of lender and the good availability of mortgages means that more local and overseas buyers can afford to own homes in France which increases an investor’s target market for resales and it also means an investor can leverage with finance to enable him to buy more.

Leaseback

The unique French leaseback scheme means that an investor wary of risk or seeking a guaranteed rental income can buy property at a discount of almost 20% and enjoy a guaranteed rate of return for a fixed duration – the scheme was created to encourage development of and investment into tourism properties in key locations; it has been so successful that there are waiting lists for such properties – but they do offer an investor a great way into real estate investment from a position of confidence so the waiting is quite easy!

Broad Range of French Property Stock

In France an investor can choose to buy to let a city based apartment, he can purchase a chateaux in need of renovation and turn it into a commercial venture such as a small but exclusive hotel, he can buy leaseback property and target the holiday market, he can buy a seaside villa or apartment without the aid of leaseback and rent it directly, he can buy renovation projects across the whole country and either renovate for local demand and tastes or for overseas buyers for example.  The range of property stock is very broad and the prices also vary greatly across the region offering an entry point for many investors.

Strong Demand

There is demand for property in France from the local buying and renting public and they have good affordability levels especially in many urban areas.  An investor can buy to let to tourism demand, buy and resell to other investors or holiday home seekers – and there is also strong demand from those seeking a new life abroad for small commercial ventures as well which an investor can create and set up and resell for profit.

In fact, France ticks many ‘must have’ boxes on all property investors’ lists which is why we are quite confident that 2007 will be another good year for investment activity in France.

Special Reports: Property News for France

France a Guide to Buying Property
A comprehensive guide to the property buying process in France including legal and financial considerations

France for Property Investors
An introduction to France and its property market for would-be investors

France Investment Property Potential Guide
From leaseback to commercial property investment opportunities, we examine the potential for profit from property in France