France Would be a Fine Thing

For UK holidaymakers, the easiest foreign destination is neighbouring France, with eleven million British tourists visiting annually, and over half a million owning property there. With living costs there generally around 25-35% lower than the UK, with the exception of Paris, and a variety of ways to travel there, holidaying in France can be one of the easiest and more affordable holidays abroad.

With the recent announcement that Air France is planning to launch a high-speed rail service that will travel from London to Paris in under two hours, France is becoming more and more accessible from the UK. Along with the increase in low budget airlines flying to and from more destinations in France and the UK, the Channel Tunnel and ferries, France can be easier, cheaper and quicker to get to even than other destinations within the UK.

So what is it that makes half a million British people want to own a property there? Aside from the initial set up and legal fees, which will work out at around 7% of the property price, you will soon be close to owning a property that pays for itself and, in a lot of cases, can be used as a holiday home for a set number of weeks a year. With a fixed rate of return on investment if using a property management company, and even more income if you choose to become more involved with the renting process, it can be fairly hassle free if a leaseback system is used.

By granting a lease to a management company, they will pay you a guaranteed rent for a period of nine to eleven years. This means there is little involvement needed with the property as they will run and maintain it, and you will receive a fixed income whether the property is rented or not.

Although you can end up owning a property that essentially pays for itself that doesn’t mean you should forget other key elements that can earn you extra case such as obtaining the best possible exchange rates when it comes to paying a deposit, or subsequent stage payments on a new-build property. Currencies Direct offer a number of exchange services that are particularly useful such as free money transfers between your UK and overseas bank accounts, for example to transfer your pension or meet mortgage payments.

If you need to transfer money quickly, a specialist can give you the best foreign money exchange rate available right now – and guarantee it – with a 'spot deal'. However, if your need is less pressing and you have the time to hold out for a really good foreign exchange rate, they can transfer your money as soon as the exchange rate reaches the level you want with a 'limit order'. You can also set a 'lower' level or 'stop' to protect yourself should the forex rate drastically fall unexpectedly. This option is ideal for when you don't have to make an immediate payment and have a very specific budget. A ‘forward contract’ however allows you to lock-in a good rate for up to two years, with only a small ten percent deposit.

As specialist foreign exchange brokers, Currencies Direct is able to offer a number of product choices for foreign exchange. Which one is right for you will depend on your circumstances, foreign currency needs and timing. By dealing directly with the currency market they get a competitive edge in pricing foreign exchange, along with charging no commission.

So with the same interest as a high yielding savings account, why not invest your money in French property? You have the opportunity to make money through capital appreciation, plus being able to use the property for your own leisure.

Visit www.currenciesdirect.com, or call the Currencies Direct team on +44 (0)20 7847 9400.

You can also email them at info@currenciesdirect.com

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