Resicom – Holiday Investment – 04-21 – LB

Low Interest Rates Bring High Interest for France

Interest rates on mortgages in France have reached record lows, making financing a property purchase cheaper for overseas property investors who finance within the country.

Although tourist rates have suffered slightly in France, partly due to terrorist activity, it is still one of the most visited countries in the world and continues to be of interest to British property investors.

Property prices have not fully recovered from the global meltdown, and indeed property prices outside Paris fell slightly by 0.4 per cent according to the latest available figure from the Notaires covering the second quarter of 2016.

However, not everywhere in France is seeing property prices drop. Paris was up 1.2 per cent and other regions much more, with the Savoie seeing a jump of 9.6 per cent and the Alpes-de-Haute-Provence 9.4 per cent.

Other regions have not fared so well, with the Dordogne and also Lot-et-Garonne down by 8 per cent and also Lozere in the Languedoc-Roussillon down 10 per cent.

Location is, as ever, very important when buying investment property, but low interest rates on borrowing for the purchase are making property invesment attractive again in the right areas of France at the moment.

Chairman of agent Leggett Immobilier, Trevor Leggett, commented: ‘With the pound bouncing up and down like a yo-yo, a huge number of our clients are now taking advantage of the ridiculously low borrowing rate.’

He continued: ‘If you are looking for an investment then property in Paris, the Alps or PACA can easily provide a 3-4 % yield, with 7-8 % yield available in some provincial towns. We’re seeing an unprecedented opportunity – even clients looking for a holiday home are piling in.’

With interest rates for mortgage lending in France at historical lows and property prices yet to fully recover, now could be the time for British overseas property investors to consider our nearest European neighbour again.

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