Why property in France?

Posted by admin in Property Investment, The South of France | September 12th 2005

There are many reasons for buying property in France, as is evidenced by the literally hundreds of magazine articles, television programes and expos dedicated to the subject … Financial Mail – “If you really want to get out of rand’s and into property, go to Euroland. French property for instance, is going at bargain prices.”

There is an increase in demand for rental property combined with a decrease in supply. For this reason the French Government are sponsoring a ‘leaseback’ scheme where they guarantee the owner of rental property a minimum 6% net return, but the term of the agreement is 9 years – a bit restrictive. It is designed to encourage supply.

Many millions of tourists visit France each year. This is not a passing phenomenon, and with the new improved and cheaper transport links, the demand for self catering accommodation in France continues to grow.

Sterling is likely to lose value in relation to the Euro in the next few years. Specifically it seems inevitable that the UK will go to the Euro soon, and when it does sterling will devalue or the Euro will revalue in the changeover. When we bought property in Cannes in May 2002, 100€ cost us 60 pounds, now it’s costing 69.9, and a US$ is worth less than a Euro.

Finally, we speak French!

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