France offers much for buy-to-let market investors

France is proving an attractive option for buy-to-let investors and is holding its own against some of the stronger European property propositions, according to a new report.

New figures from property investment specialists Assetz have shown that despite the emergence of strong investment markets in popular Eastern European countries such as Bulgaria and Croatia, there has been an astounding 100 per cent increase in French sales since January 2006.

Particularly interesting is the high regard with which British buy-to-let property investors treat France. As Britain’s closest European neighbour, France has always proved a popular investment proposition due to its continuing leaseback scheme. The scheme offers investment opportunities in holiday rental properties without any of the associated market hassles, while also allowing investors the possibility for corporate lets in chic French cities such as Paris and Strasbourg.

Moreover, the quality offered by French properties is an advantage reflected right across the scale in the region’s growth as a buy-to-let hotspot.

Stuart Law, Assetz managing director, said, “Hard-nosed investors might want the higher returns of Bulgaria but they would not retire there. Quality destinations that offer an established infrastructure, culture and lifestyle, including excellent food and wine, continue to hold firm against their new competitors.

“Capital growth is slower in France compared to Bulgaria or Croatia, but the rental market is undeniably strong and reliable, underpinned by a tourist industry which sees 60 million people visit the country every year.”

The Assetz Property Investment Tracker discovered that French capital gains stood at 10.3 per cent over the last 12 months with typical deposit levels sitting as low as 15 per cent. When these figures are combined with the seven per cent growth yields and capital growth, potential buy-to-let investors will be pleased to hear of an average of 68 per cent total returns on the funds initially invested.

The renaissance of investment in the French property market is all the more impressive given the trends for investors to look to Bulgarian ski resorts such as Bovorets and Bansko in 2005. However, the country’s popularity as a holiday home and retirement destination plus the considerable buy-to-let potential in the meantime has seen France become established as a market favourite.

While many of those looking to invest in French property may have a stereotypical image of the rambling countryside epitomised by Gerald Depardieu in the classic film Jean de Florette, the reality is an altogether different one. Investors are, in fact, shunning the wandering French countryside and farmhouses of the Dordogne region and instead opting for hassle free new-build houses and apartments. Apartments on the southern coast of France are particularly popular with Brits as they require little upkeep in terms of DIY and mowing the lawn.

Law concluded, “Relocating to France has never been easier with broadband connections and cheap flights making it as commutable as Cornwall or Wales. Property prices, though rising, still remain considerably lower than in the UK, so those retiring in France by releasing equity in their UK home can usually enjoy a great lifestyle.”

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France offers much for buy-to-let market investors

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