Flurry back to France
In recent years France has been outshone as a popular destination with ‘emerging’ countries such as Bulgaria, Hungary and Lithuania stealing the limelight as their economies boomed and have-a-go British investors tried to make a quick buck. However as many of these emerging destinations are no longer viewed as the hot investment opportunity they once were, France, a longstanding stalwart of the overseas property market is enjoying a resurgence in popularity.
With its vast English spoken ex-pat communities paired with a robust economy, its no wonder people feel more confident when investing in France, especially during times of economic uncertainty in other parts of the world. France has something to offer every ex-pat with each of the 22 regions representing its own charm, culture, peculiarities, and vineyards. Whether you are retiring or looking to invest, there are many destinations and options that are well worth considering.
For tranquillity and relaxation Brittany is a fantastic example of the serenity that France has to offer. Brittany holds exceptional historical and artistic heritage with over 4,000 chateaux, manors and stately built homes, as well as being famous for its apples and cider production. Not too far from the south coast of Britain, Brittany has proven to be a popular place for retiring Brits, as friends and family are only a short ferry ride away. Property in this region varies dramatically in age, architecture and most importantly price.
If, on the other hand, you are tempted by a more glamorous location with hot and dry summers then the Cote d’Azur on the South Western coast of France is sure to grab your attention. Mark O’Sullivan, director of dealing at foreign exchange specialist Currencies Direct, comments, “The Cote d’Azur is unrivalled in its popularity with cash-rich City investors thanks to its superior properties, fine restaurants and world-class golf courses. Prices in the region have doubled since 2000 according to some sources, and will no doubt continue to rise steadily as more money flows into this affluent region.” That’s not to say that all properties are expensive, by travelling further inland you are likely to find hidden gems with an agreeable price tag.
For those that don’t want to make the permanent move abroad there are plenty of investment opportunities and schemes that have become popular all over France. Tourism plays a very large part in the French economy, and unsurprisingly, there is a shortage of tourist accommodation, specifically in Paris. This means if you buy the right property at the right price you are likely to make a good return. To get the best of both worlds where you own a property, receive rental income and can use it as a holiday home, a ‘leaseback’ option is worth consideration. This scheme enables you to lease back your property to the developer or another property management agency, whilst they maintain and rent it out for you, leaving you to sit back and reap the benefits. This is a popular hassle free option but you need to be aware of extra fees and costs associated.
Another, perhaps slightly morbid, option are ‘French Reversion Schemes’, which involves buying a property at a reduced price from an elderly inhabitant. The scheme enables you to move in or use the property only when its original inhabitant has passed away! Although increasing in popularity across France, estimating a time limit on someone’s life may put some people off. Furthermore, even though you can secure a property at a reduced price, don’t expect instant returns.
When it comes to moving or investing abroad, not only do you need to be savvy about exchange rates when transferring money, but you also need to be aware of extra fees that agencies and banks may charge you. Mark O’Sullivan comments, “Regular transfers overseas may be needed, perhaps to service a mortgage. High street banks can leave buyers out of pocket even after the first lump-sum transfer by charging fees of up to £20 on small successive transfers.” To ensure your returns are optimised and you receive the best possible rates you need to look beyond the high street banks. Any foreign exchange specialist worth their salt should be able to offer you a considerably better exchange rate, potentially saving you up to £4,000 on the cost of an average property abroad, and many will not charge you any fees or commission for the pleasure.
The housing market in France is historically more stable than for example the UK market. The last decade has seen a large number of European residents relocating to France where property prices are on average substantially lower. So don’t miss the ferry, head to France and find out what’s on offer.
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