The property in France has over the past twenty years increased exponentially in value, however this phenomenal rate of growth has ended. There are still good investment opportunities in the French property market but the investor has to be more discerning in today’s economic climate.
There are of course excellent returns in the holiday let sector along the coast, Riviera and Alps but you have to be pretty wealthy to even consider this end of the market. You also have to take good care that your tax liabilities do not encroach to far into your margins. Much depends on your residency status but your accountant will be the best person to advise you on this matter.
Renovation property for either home, second home or holiday let in France can look like a fantastic deal. But care needs to be taken especially in the costs of renovation, as in the rest of Europe there are more and more regulations about who can do what and while the DIY enthusiast can still save himself money, he should consider that his project must be ratified by French qualified tradesman, or his licence to live in the house may not be granted.
It is often argued that it?s cheaper to build new than it is to renovate and sometimes this is the case, but not always and at the end of the day what is it that you want, you can?t fake old, you just can?t. So if modern architecture is not your bag then the renovation project could be your way into the French property market, for a start there are a lot of old buildings still for sale in rural France that can be bought for little money and you don?t have to fix it all at once, therefore you can buy now and restore the property at your own pace.
If you are looking for fast turn around and immediate profit there are better markets to explore at the moment, but the long term outlook for the French property market is still up and if France is where you want to be then look no further.
France still offers so much in pace of life, food, lifestyle and a language that makes your toes curl up in the nicest possible way which it remains and will remain one of the top destinations for the foreign property investor.