Investing in French Residential Property
Although an estimated 400,000 properties
in France are owned by the British, until recently the country was largely considered
as a place to acquire the quintessential rural holiday home, with many Brits snapping
up ancient and dilapidated properties in areas the French themselves no longer wanted
to live. In the past, the potential of France as a market for serious investors
has been largely overlooked by many in the UK. The French themselves, however, have
looked at property as being a fundamental part of their retirement planning for
many years, which has resulted in a very mature and well organised residential investment
market - with many government approved, tax efficient schemes available. Below is a brief guide to the investment opportunities to be found in France.
Leaseback
France is one of the few countries that can offer genuine long term
rental guarantees - Imoinvest can offer investments where you can enjoy the security
of guaranteed, indexed linked rental income for up to 22 years. No other world market
offers such security to the investor. Add to this the security of high loan to value
financing with fixed interest rates for up to 35 years and you can see that in terms
of investment planning and managing risk, France is an unbeatable market for
property
investment.
Basically, a leaseback investment is a purchase of a freehold property where
you grant a lease to a professional property management company who will sublet
the property and pay you a guaranteed rental for a fixed lease period - the lease
will be for a period of at least nine years and is usually renewable after that
initial term. The rent will be paid by the company regardless of whether or not
they rent out the property at all times. By investing in leaseback you eliminate the risk of void periods, you have no
concerns over the security, maintenance and cleaning of the property and as it is
in the interests of the management company to keep everything in good order so that
they can continue to sublet, you can be assured they will take care of your property.
Classic Buy-to-Let
In addition to the opportunities offered by the leaseback
scheme, as France is largely a nation of renters - the residential housing market
offers investors an unrivalled
buy-to-let environment.
New build properties constructed by large international companies are offered
to the market with prearranged rental programs in place. This means you can buy an apartment off-plan with perhaps a completion date in
two years’ time and be guaranteed a tenant and thus a rental income upon delivery.
With the average price increase across France now 15 per cent per annum, it is not
inconceivable to have made a capital gain of over 30 per cent by the time you get
the keys.
These properties are available all over France, with key investment hotspots
being Paris and its suburbs, the revitalised cities of Toulouse, Marseilles and
Bordeaux and in fact all along the Mediterranean and Atlantic coasts.
ImoInvest, have sought to bring our expertise in the French market in order to
offer investors in the UK and Eire the opportunities hitherto only available to
the French.
We have recently opened offices in Central London and Dublin and welcome the
opportunity to meet prospective clients in these cities and discuss how the opportunities
we offer can meet your Investment needs.
ImoInvest UK Ltd
21-22 New Row
Covent Garden
London WC2N 4LA
Tel: 08718717744
Fax: 08718717745
www.imoinvest.com
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