While increases in prices in the French property market have slowed, there is still upward movement. This is notably the case in the cities such as Lyon and Strasbourg, as well as in coastal areas where a real shortage of accommodation is apparent.The market slowed off in the run-up to the French presidential election, which is a normal occurrence, but has since picked up.
The future looks promising property-wise due to new president Mr Sarkozy’s planned reforms. For those purchasing their main property of residence he has introduced a tax reduction of 20 per cent of the mortgage interest paid annually up to €1,500 per year per couple, or €750 per year for a single person during the first five years after the purchase and of the mortgage. Inheritance tax has also changed, with the surviving spouse no longer paying inheritance tax. Mr Sarkozy wishes to encourage French residents to purchase property and to become a nation of home owners like the UK.These reforms are expected to boost the French property market in the coming years as more and more people are encouraged to purchase property, which will also attract foreign investment. This coupled with French lenders improved flexibility and less rigid approach will allow more people to purchase a property.
In 2005 the average age of people purchasing an apartment was 43.5 according to the French chamber of notaries.Eighteen per cent of our clients are aged between 30 and 35 and live in the South East, so it just shows that more and more young professionals are highly attracted to the property market despite the ups and downs we have seen over recent years.With the famous ‘loi littoral’ in France, developers are not allowed to build on the coastline and therefore developments on the beachfront are extremely rare and sought after. Despite a general slow down in the French market, coastal areas are continuing to see the highest increase in property prices, as buyers rush to secure property as a main place of residence or a holiday home, but also with the outside interest of foreign purchasers such as the Brits.
YFP is currently selling a beachfront development in the Atlantic resort of Mimizan Plage, where prices rose by 12 per cent last year alone and are expected to continue to increase with the current trend in France for coastal properties, fiscal advantages and also the improvements of the resort itself. Prices start from €181,400. Bordeaux and Biarritz airports are both less than 90 minutes away and are serviced by Easyjet and Ryanair.Loire Atlantique and Southern Brittany are also coastal hotspots, property prices rose by an average of 21 per cent in 2006 in the area surrounding La Baule. A lack of properties on sale in the Morbihan area means that prices are tending to rise rapidly as it is a sought after area. Your French Property is marketing properties for sale in a delightful seaside residence just 20 metres from the beach, located on the Presqu'île de Quiberon in Brittany. Prices start from €205,500.France remains a popular destination for tourists from the UK and Ireland due to its proximity and flights with low cost airlines. We are seeing more and more requests for new build coastal properties as opposed to existing houses and renovation projects, as new build properties present a good solution for those looking for a holiday home due to the low maintenance and building guarantees offered.France has everything a Brit could ever dream of.
Forty-five per cent of our clients buy in France because of the fantastic lifestyle that it has to offer, not to mention the amazing climate compared to the UK’s unpredictable weather (particularly this year’s tragic monsoon summer).With Sarkozy’s changes, prices on the up and property bargains still to be had France is still a viable and stable option for British buyers to look into when in search of a long-term investment.For more information contact Your French Property on 01793 610947 or visit your-french-property.co.uk
Residence la Pinede, Le Bacares, Languedoc Roussillon
Residence le Pinede on the shores of the Mediterranean is made up of 15 three-bedroom villas with garages, terraces and private gardens, along with 41 one, two and three-bedroom apartments.
The attractive fishing port of Le Bacares is a year-round tourist attraction, easily accessible through low budget airlines, which is creating a big demand for rental accommodation. The increase in property prices in the Languedoc area has been in the region of ten per cent annually over the last few years compared to a national average of seven per cent.
All the properties are available either as a traditional holiday home or as an investment opportunity through the Assetz Leaseback scheme, costing from €119,500 (£81,577).
Under the Assetz scheme, investors would claim back VAT on the property purchase and receive a five per cent guaranteed rental yield for five years, with all administration fees, taxes and insurance paid, along with three weeks’ free usage and a 15 per cent discount on the public tariff at other times. Following this period the management company would continue to rent the property out for another four years, should the investor wish to do so.
For further information, contact Assetz on 0161 456 4000 or visit assetz.co.uk.