Investing correctly into French Property can be so attractive and take up so little of the investor’s time that we have dedicated a whole section of our site to the unique proposition available by investing in French property. The general rule of thumb here is that these properties are aimed towards the medium-long term property investor and are therefore low risk. However, do not make the mistake of thinking that low risk means low reward. As we shall see, the rewards on offer, when purchasing the right product, can be extremely attractive.
The French managed leaseback scheme was introduced in France in response to a lack of properties to rent to tourists and visitors in key areas such as cities, ski locations beaches and areas of touristic significance. These areas are therefore generally sought after areas where the property sales market is also in demand from investors, home-buyers and holiday home buyers. The locations usually suffer from an under-supply of properties to rent. France is the number one tourist destination on the planet and demand for properties in certain locations is very high.
A managed property investment will provide the investor with a minimum of 9 year rental assurance with rental income between 4 and 5.5% net. Most or all of the maintenance and management costs are deducted prior to the payment of the income figure which means that when compared to a more standard buy-to let property where there may be letting and management fees and service charges to pay along with void periods, the yields enjoyed by the investor can be viewed as comparable to a couple of points higher. What’s more, the occupancy of the residence is of no consequence to the investor. All of the usual concerns relating to property investment such as breakages, tenant defaults and void periods along with high maintenance and management costs are of less concern with this type of property investment.
In addition to these benefits, purchasers benefit from the VAT incentive where 20% of the purchase price is refunded to the investor by the French Government.
Those investing into furnished investment properties and leaseback investment properties in France also benefit from extremely attractive income tax incentives relating to their French property. In addition to all of the above, French mortgage rates are currently at record lows with mortgages available form 2% and purchasers can fix their mortgage payments for up to 25 years at rates which would seem fanciful elsewhere. Please click above to go to a selection of French investment property that is currently available and please click here for a tax example comparing UK and French property investing income rates (please seek advice from your tax advisor).
Now is the time to purchase and investment property in France. With ultra-low mortgage rates available along with excellent property investor incentives, this excellent investor structure will suit both the low money high leverage investor and the cash investor looking for attractive stable long-term returns with minimal time requirement on the part of the owner investor.
We would be delighted to discuss your French property investment goals so please do not hesitate to contact us to discuss this excellent form pf property investing.