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Investors considering obtaining a French mortgage could not have picked a better time, according to the experts.

Financial analyst Consultancy Global Insight has said that the French property market is likely to remain “dynamic” in 2007.

The firm insisted that although there had been reports that the number of new home building projects in the country had dipped by 15.1 per cent from February 2006 to the same month in 2007, a crash was “unlikely”.

French property proving popular

Research from the Federation Nationale de l’Immobilier revealed that house and flat prices across the country rose by one per cent and two per cent respectively in February, compared to a month earlier.

Economist Sonia Pangusion said: “With the economic expansion seen in 2006 likely to remain broadly on track in 2007 and with continued favourable credit conditions, the French housing market will remain dynamic in 2007.”

Brits get French mortgages

Meanwhile, a recent survey by currency firm HiFX has revealed that France is still the most popular destination when it comes to buying property abroad.

Perks like the French railway which helps people to travel in France with ease means that families are still flocking to buy holiday homes and older couples heading there to retire.

They are often prepared to travel further but like the convenience of low cost airfare destinations to all parts of France. So a Provence Property is less than 90 minutes away.

More articles on France >> French Articles

Popularity: 26% [?]

Leasebacks

Leasebacks have just got better with some important French TAX changes - more of that later. With a French Leaseback, you buy a property - typically in a ski, beach or golf development - and receive back the local tax (TVA). TVA is levied at 19.6% in France. As well as this substantial perk, you received a guaranteed rental income for initially 9 to 11 years.

How much does the Property Price appreciate?

Here are some examples provided by the biggest leaseback developer in France:

1 bedroom Meribel apartment bought in 2003, appreciated in value 118.3% when sold in 2006.

1 bedroom Coudalere apartment bought in 2004, appreciated in value 97.4% when sold in 2006.

Of course, we cannot guarantee such high levels of growth on future purchases

SIPPS

Another big tax perk for UK buyers is the benefit of buying a leaseback within your SIPP. Many of our developments are classed as “commercial” and can be included. We have leasebacks in France and Spain that can be included in SIPPs.TAX BENEFIT
There has been recent clarification of a new French law regarding VAT and leasebacks. Upon the sale of a leaseback property, owners now no longer have to repay the VAT pro rate temporis as long as the new buyer continues with the lease agreement - the new buyer does not therefore have VAT to pay either.

OUR TOP TIP

CENTER PARCS

Lac de l’Ailette, the first Center Parcs Europe Domain developed by the Pierre & Vacances Group, opens in July 2007.

The new generation Center Parcs is in a league of its own - with high quality furnishing, LCD screens, private terraces and three different types of Cottages.

We expect reservations to be snapped up fast - please contact us if you wish to reserve.

Sebastian Jay
PropertyMagnate.com - Leaseback Investments
tel: + 44 (0)1525 635191

Popularity: 35% [?]

Luxury French Property

These are France’s dream properties to own - from fabulous chateaux to luxury villas on the Cote d’Azur. Live like a movie star in your French pad. Buy one today! Mere pocket money for some……enjoy:

Top 10 Most Expensive French Properties

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This list updates automatically so bookmark!

Many more - click here >> Luxury French Property

Popularity: 25% [?]

Here are the results of our quarterly review of top French regions in terms of property buying! Our sample is based on 190,000 visitors to 1st for French Property during the period January to March 2007. Here is the breakdown of visitors to the website. Not surprisingly the majority of English speaking visitors come from the UK.

The most popular region is once again Brittany. The table also shows the movement in % visitors for the 2 periods.

Our previous results are discussed here: Top 10 (Oct to Dec 2006)

Popularity: 25% [?]

Despite the fact that Brits are big buyers of property in France, they have a terrible reputation in France whilst buying a property. Why?

a) The big reason - Brits book appointments to view and then do not turn up.
b) The Brits expect to view during lunchtime (noon to 2pm). Mon dieu!
c) Wasting time!
d) Culture differences

Appointments

No doubt this is the biggest issue! Appointments are often made, and broken without any communication with the Immobilier. Potential buyers should be aware that the Immobilier has set aside a time frame to show you a property (and in many cases will have turned down other potential clients at the same time); he has organised a viewing time with the vendor - so the vendor can have set aside time to receive you! Many Immobilier will ask for a mobile number whilst you are viewing in France to ring you and confirm a viewing. Often Immobilier complain that mobiles are turned off or the British clients have not arranged international roaming and so they do not work in France!

Brits when asked about the lack of communication will often get aggressive and cannot see how inconsiderate and rude they have been! A classic excuse: “I was stuck on the motorway”. When asked “Which French Autoroute?”. Reply: “We are still on the M1 in England”. Yes - not even in France. “Not our fault we did not ring you!”. Then, of course, the good fallback - “It was too expensive to ring you on our mobile. International mobile calls are so expensive you know!”. Just how much was that property you were going to buy?

Lunchtime Viewings

Brits just do not appreciate how important le “Lunchtime” is. It is a sacrosanct 2 hours that the French enjoy - it is a passion to eat well and savour the ambience of food, wine and talk. How often do you hear “Don’t they want to sell me a property? Why won’t they arrange a viewing so that it will fit in with my viewing schedule?” Don’t forget one of the reasons you buying a property in France is too enjoy the French life style and culture.

Wasting time

Another classic - “I’m holiday in the area, can I have a butcher’s at a few houses while I am here?”. Often asked during July and August - when most French go on holiday - so Immobilier will be on skeleton staff (if not closed), and the Vendor could be on holiday too. Consequently viewings can be extremely difficult to arrange.

In many cases, the most frustrating time-waster “I have a property to sell in the UK!” Remember once you have made an offer which is accepted, you will have to sign the “Compromis de Vente”. This document commits you to buying - normally the process takes about 3 months with the Notaire. You HAVE to be in a position to buy - do not make offers if you cannot complete with 3 months (approximate time frame).

Culture Differences

We have already mentioned the Lunchtime issue! Brits have to realise that the pace of life in France is different. Everything is more laid-back. You are going to have to get used to it! This is France and what you are buying into. Yes, at times it can be frustrating. You are in France so do not expect to dictate your terms of reference on the French.

Are we really that bad?

Of course, most of the Brits are NOT representative of the above. They are all too ready to adapt to the French style of life, and enjoy their experience in France. Many Brits even become friends with their Immobilier! 

Popularity: 63% [?]

In France Private Property Sales account for a large share of the total number of properties sold in France. Why? Well one reason is the fee / commission that Immobilier (Estate Agents / Realtors) add to the property price. This fee can be 5 to 10% of the price! So the vendor thinks his price will be more attractive with a private sale!
So it is a big carrott - for a selection of French Private Sales < < click here.

If you want to go down this path - remember all property transactions in France are performed by Notaires. Do not part with cash to a vendor however tempting the price! The property transfer will not be legal unless the Notary has checked and notarised the sale. The notaire's fee including taxes will be about 7 to 9% of the purchase price. Documentation will be in French and you need to understand what you are signing.
In addition, we would recommend that a surveyor (or at the very least a local builder) has checked the property for problems and estimated the costs of renovation or repairs needed.

The Comfort Factor

If you want a helping hand when buying a French property, then get the comfort factor of using an Immobilier who is experienced in selling to the English. They will often help you through the purchase process, including negotiating a better price with the vendor, arranging mortgages (at better rates), translating documents, arrange the transfer of utilities (gaz, electricity, phone, etc.) into your name, recommend builders, etc. You could also end up saving money by using the services of an Immobilier!

Popularity: 21% [?]