Property in France may never be better value than it is now, with prices at their lowest since 2003 and borrowing cheaper because of new tax breaks.
Also, changes to inheritance tax (the amount a parent can leave to each child has trebled, and transfers between husband and wife are now free) make this the time to snap up an investment, as there are some real bargains available, says Trevor Leggett, executive director of specialist French agent Leggett Immobilier (www.frenchestateagents.com).
Mr Leggett's advice is backed up by recent research by the company that finds nearly half of British house hunters are attracted by good value in France.
‘Traditionally, France has been a country that has offered UK buyers excellent value for money along with safety and security. Our survey shows this French reputation for reasonable property prices still holds true, now more than ever,' he adds.
A quarter of those questioned are looking to move to France to reduce financial pressure, with worries over fixed rate deals ending in the UK, debt and the effects of the sub-prime market scare.
'In France, the situation regarding fixed rate mortgages is different,' Mr Leggett explains. 'The French have always preferred a fixed rate for the entire term of the loan, which generally are not available in the UK. And if you do find one, it can be very expensive. French people do not move as frequently as the British and tend to plan for the long term.'
Leggett Immobilier has witnessed strong levels of interest right up until the end of 2007, showing the slowdown in the UK market has not impacted upon demand abroad.
- Overseas property for sale
Comments
Martin
June 12 13:10
However, the peak of the rate of growth was 15.4% in 2004. Perhaps Cheryl meant to say that the growth trend in prices as opposed to the actual prices is lower than 2003, which this confirms.
In any case and to support John's point, there has been continued price growth over the last two years and especially in the Alps Maritimes Cote d' Azure - recorded at 21.3% for 2007, the Languedoc at 9.3% and Ille de France at 11.3%.
Although France has a land mass over 3 times the size of the UK, but a population of similar proportions, there is still a big and increasing housing shortage. Like the UK, desirable coastal areas (the Med) continue in increasing demand as does the capital.
However, the different structure of the French economy, with it's high savings and massively lower consumer debt ratios, mean it's capital city appears more able to withstand the pressure on property prices there.
You can buy excellent value property in many areas of France, but you just won't get the capital growth that the areas above deliver. Like all markets things are driven by supply and demand fundamentally.
There is no doubt that many experts see the southern half of the Languedoc as a big growth area, which seems justified by med-side and city properties in Perpignan being considerably less psqm than such properties from Montpellier to (astronomical) Nice. Perpignan's coming connection by TGV to Barcelona at a journey time of 43mins may over the next few years have a big effect on this.
So if you do want to reduce pressure with a move to France, yes there are good fixed interest rate mortgages you can access here, but you'll only get the best rates with a 20%+ deposit. However, lending decisions are more limited in France and based on a strict debt/income ratio.
If you want to know more contact me at martin@sud-de-france.co.uk
John
February 16 05:29
M. Smith
February 15 11:32
Thanks for sharing
Nice article
I'm thinking of buying in France but I'm a bit hesitating at the moment
I'm not sure if it is the right moment to buy as the exange rate is not to good at the moment.
I'm considering of buying new, though
I've been searching through some websites - aplaceinfrance.co.uk and latitudes.com - and the idea of buying new in France sounds very good.