Where and Why to Invest. Loans & Credits
If you are looking to invest in real estate in 2019, many questions will invade you such as: What kind of property to buy? Where should I invest? Where can I buy goods at reasonable prices? etc … All his questions and even more arise when looking to invest in France. It is a country where real estate is advantageous and at the same time complicated because of the rather expensive taxation. However, real estate is also advantageous because not only is it profitable but also this profitability is quite interesting it lasts longer when you know how to keep tenants.
Why should I buy property as an investment in France?
There are quite a few good reasons why one should bet on houses in France for a satisfactory profitability. First of all, because of the structure of the French mortgage market property prices are relatively stable and there are now clear signs that property prices are increasing across the country. Secondly, in the south of France in particular, you can take advantage of the high rental yields of weekly rentals during peak season in summer and long term. Thirdly, the French economy is finally about to start again, with forecasts of strong growth for 2018, why it will not continue in 2019? Finally, over the next ten years, the south of France will experience a strong demand for housing. You can turn this situation in your favor.
Real estate in France: high yields in the rental sector
There are a number of factors that contribute to a successful outcome in a real estate investment . The first is to buy a secure French property. Basically, you have to look for a property below market value – it’s a renovation project or buy the property when the market has reached the bottom of a slowdown. As already pointed out above, it is quite logical that investors should be encouraged to consider buying a house in France. Second, when borrowing costs are cheap and rental yields are high, real estate investment conditions are favorable. The low level of interest rates in the eurozone currently makes borrowing more attractive than saving. In addition, when it comes to rental yields, this is where the south of France is really in itself. Traditionally, real estate investors target long-term residential rental of properties to produce return on investment. But in France, residential rentals are problematic. The law strongly favors the tenant and the market rates are not favorable. However, there is a neglected niche in the market which, in our opinion, opens the South of France to real estate investment.
Investment tips in France
It is therefore important to invest well even if in France real estate investment has a lot of advantages. Enjoy the tax exemption varies depending on the type of property and also by location. Some places benefit from a more favorable rate of tax exemption because of the real estate development policy in the area concerned. Otherwise, some places are also favorable for rental because the demand for real estate rental is huge.