Why to invest in a property in France?
Why invest in France?
“Overseas investors can feel secure in their investments…”
France’s reputation remains remarkably unsullied. French estate agents and developers are strictly regulated, and buyers are well protected by the law. What’s more, with its carefully controlled lending climate, and lack of ‘boom and bust’ trends within the property market, France has been remained strong.
Nowadays, France is so easily accessible. This makes a holiday home an extremely practical and logical investment.
Over the last few years, buying property in France has been a very popular investment alternative for many people, be it for a permanent move, a second home, or a long-term or holiday let. As a whole, the prospect of investing in the “French Way of Life” is an important deciding factor.
Consumer protection is a serious priority in France and property buyers immediately feel
that they are buying in a safe and reliable legal system that is there to protect them. Particularly for those who have never bought property abroad, France is the perfect place to start, as the strict French legal process protects the buyer from any of the risks associated with buying property in the emerging markets and the horror stories heard in the press.
“Entering a mature and stable market…”
The French economy and its property market are mature which gives buyers security in comparison with new and emerging markets in less politically and economically stable countries. There is historical data on the housing market in France and, therefore, the proof that this country can provide a safe and sustainable return on investment. The French economy was not affected by the recession quite as dramatically as other counties.
“A sustainable long-term return in investment…”
Those with savings, particularly in today’s economy, see French property as a good investment for this cash. Properties bought in the right key hotspots in France, Lake Geneva region, Paris or Cote d’Azur, are likely to see long-term capital growth as well as excellent rental returns in the meantime.
France is the number one destination for holiday makers with approximately 75 million tourists visiting France every year. In addition, the French themselves tend to holiday within France putting further demand on holiday rentals. The French government is continuously offering incentives to investors to buy and rent out holiday style properties as they are in desperate need of sufficient accommodation to handle this demand from tourists. Those who holiday in France see this for themselves and want to enjoy the benefits of buying into this market.
“Offers an attractive retirement option…”
Those looking to the future see a good, safe investment in the French market as a way of generating a Euro income for their future retirement to Europe. Others will buy a property with a view to moving to that property once they retire. Either way, the French property market provides ample choice to those who want to plan for a better future.
“Ranked No1 for International Quality of life…”
Whether a property in France is used for holidays, full-time habitation or retirement, it is a way to benefit from the French joie de vivre on a more regular basis.
France ranks No.1 in the International Living Quality of Life Index and the uSwitch European Quality of Life Index. When it comes to quality of life, there’s nowhere quite like France.
Nowadays, France is so easily accessible, overseas buyers who can’t move to France permanently can benefit from this better quality of life for their summer holidays and short breaks.
France’s many charms cannot fail to work their magic on foreign buyers, particularly as this country can offer something to suit every lifestyle requirement; ski, sun, beaches, mountains, cities, culture, history, food, festivals, wine, architecture, alfresco dining…
Purchasing Property in France
Buying property in France without the help of a market expert has the potential to turn into something of a nightmare for the overseas buyer. The system is fundamentally different to that of your local market and should be respected accordingly – the legal process and tax system, for example, as well as the need to confront the inevitable language barrier.
Using the extensive experience and knowledge of Vendome International Property, will help to bring you peace of mind throughout the buying process, allowing you to focus on making your dream a reality.
The preliminary contract is called a contrat de réservation.
The purchase usually takes place in two stages:
- The preliminary contract (“compromis de vente”) is the document you sign when you wish to purchase a re-sale, i.e. a property that you will buy from a private seller. It is as binding as a sale contract for both contracting parties. Since the 1st June 2001 there is a new law that tends to protect the buyers. It gives you a cooling-off period of 7 days to think over your purchase and, if you decide not to go ahead, you can call off the deal. No money will be asked for or cashed during these 7 days. Only at the end of this delay will you have to make a deposit. On signing of the contract, you are generally asked to pay a deposit of 5% (new development) to 10% (second hand property) of the price. You pay direct to the notary on a client account. However, the mortgage authorization from the bank is still a pending condition to the contract.
- The reservation contract is the document you sign when you make a purchase in a new program, off-plan, or up to 5 years old at the most.
On the day you make the reservation, you will have to sign:
- the contract itself,
- the specification sheet of the building,
- the block plan as well as the floor plan,
The Final Deed of Sale
The final deed of sale is also called a acte de vente.
This “acte de vente” is to be carried out by a French notary, who represents, as a public officer, the Government and they are impartial. It is common practice to instruct only one notary. He is responsible for making the usual enquiries before completion (i.e. checking the origin of the property, the parties’ identities, as well as all legal and financial aspects related to the property), thus preparing the title deed for both vendor and purchaser.
Following this compulsory deed, the transaction is to be registered by the “Conservation de Hypotheques” (the Land Registry), which is a department of the Inland Revenue Service.
In the case of a re-sale, you can choose the notary you wish. If it is a new program, you deal with the notary in charge of the program. You have to bear in mind that from day one (on the day you sign) you have to take a basic insurance policy (fire, water damage and third liability) to insure the property.