French Property Market

­­­­How is the recession affecting the French Property Market?

With the current economic crisis emerging into something bigger than anyone could have expected, it is becoming evident that the recession is global, and bound to touch every nation involved in the free market economy including the French Property Market. In the UK we have seen more houses being repossessed, property prices fall considerably, and well known and long established companies go out of business. As the number of people out of work constantly rises from week to week, people are becoming wary of parting with their money or taking out loans and mortgages.

Analysts say that France has not experienced the recession yet and may pull out of the downturn by the end of 2009, the reason being that it did not experience the property bubble as much as other countries and hence did not have as much household debt either. As mortgage lending is based on the borrower`s ability to pay the value of a property, house prices have not depreciated on such a large scale as in the UK. However, sales in the French property market is slowing down, as people are not investing so eagerly of late. The majority of property investments by Brits are as second homes and in these economically difficult and unpredictable times people are being cautious. However, it is still a good time to buy in France, as French banks are still lending and buyers can negotiate a good deal in house prices. Negotiations should take place prior to the buyer signing a compromis de vente, once they are sure that they are happy with the property. Sellers have embraced the fact that the exchange rate between sterling and euro has fluctuated daily, and British owners of French property have grabbed the opportunity to take advantage of the weak pound by selling their French homes, despite the likelihood of having to pay capital gains tax in the UK. However, a word of warning here is that when contemplating buying a French property it is always a good idea to consult a currency house on transactions.

The buying process in France is quite straight forward although it is inevitably conducted usually in French. It is advisable to buy your new French property through a property agent, of which there are many available online. This way, you will be helped through the process. It is also recommended that you find your own independent legal advisor or solicitor to deal with all the legalities, ensuring as smooth a transaction as possible. Although property sales in France have slowed down, it has been at a lesser extent than in the UK. Mortgages are still available from French banks who have not been affected by the recession as much as those in the UK. As British owners of French property are cashing in on the weak sterling, more desirable houses are coming onto the market and prices are definitely lower than they were a year ago. Invest in the French property market with cashback opportunities

If you enjoyed this article please Social Bookmark so that others can benefit .....

Related Articles:
Know your mortgage options when buying French property
A move to France doesn't have to be taxing
Insurance top priority when buying in France
Get a good view of French property
Get up to speed on French property deposits
Will you pick a survey for your French property
Get you French home out from under the hammer
French investors inherit foreign will system
Counting the cost of buying in France
Top tips for buying a French property