How are house prices doing in France?

How are house prices doing in France?

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Discussion

slf2012

Original Poster:

313 posts

153 months

Monday 18th August 2014
quotequote all
We are looking at spending a portion of the year in the south of France, either Nice, Beaulieu or Villefranche and were wondering if renting or buying would be best.

We have two rental properties in London, both of which have offered great investment returns and have been fairly hassle free.

We had thought that buying in France would be best, but I'm wondering if we would be better buying another property in London and using the rental income from that to rent a place in France?

I guess the decision would be based on which place is likely to make more in the long term, and I think London might be the best bet?

Obviously markets can go up and down, but is the London market likely to be a better long term prospect? Are there any other factors I need to consider?

magooagain

10,801 posts

177 months

Monday 18th August 2014
quotequote all
The areas you have mentioned are a better investment than alot of other areas in France.
It could be an even bet that owning a house there could match a London investment.
If it was me i would play safe and buy another in London though as rental in France in those areas could be only seasonal.
Its a nice conundrum though!

Fatt McMissile

330 posts

140 months

Monday 18th August 2014
quotequote all
slf2012 said:
Are there any other factors I need to consider?
Exchange rate fluctuations if you buy/rent/borrow in a different currency to that where you mainly earn your income?


rdjohn

6,370 posts

202 months

Monday 18th August 2014
quotequote all
http://www.cgedd.developpement-durable.gouv.fr/hou...

This was a bit of research that I read last week. You need to click onto the links to find the relevant information that you need.

Personally, I would say it is a no-brainier. Any difference in rental dividend would be comparatively minuscule compared to the probable capital appreciation of a property in London.

Russwhitehouse

962 posts

138 months

Tuesday 19th August 2014
quotequote all
London! Don't even entertain thoughts of property as an investment in France. Rent one when you fancy it, or buy a holiday pied a terre, to enjoy, but forget all about making money.

lowdrag

13,033 posts

220 months

Tuesday 19th August 2014
quotequote all
Russwhitehouse said:
London! Don't even entertain thoughts of property as an investment in France. Rent one when you fancy it, or buy a holiday pied a terre, to enjoy, but forget all about making money.
+1 Rental rules here, were you to let it out, are draconian. If they don't pay the rent you can't get them out in winter and it might take you a year to evict. As regards buying as an investment, forget it. With the "council tax", the new tax on second homes for foreigners, the maintenance and periodic upgrades it just isn't worth it. Here in the Sarthe my house has lost 25% of its value in 10 years, plus the pound/euro fall. Just rent for the period you want and if you don't like it, try somewhere else and just hand the keys back.

slf2012

Original Poster:

313 posts

153 months

Tuesday 19th August 2014
quotequote all
Thanks for all the help guys, sounds like my initial hunch was right!

Buy another place in London and rent a place in France!

YankeePorker

4,797 posts

248 months

Tuesday 19th August 2014
quotequote all
Now that we're no longer fiscally resident in France, my wife and I pay 35.5% tax on the rental income from our property there. Add to that the property tax (impots foncier) and we struggle to break even on the rental. And of course selling the house in the current economic climate would make us losers too.

But it sounds like you have already reached to wise conclusion.......

AlexIT

1,549 posts

145 months

Tuesday 19th August 2014
quotequote all
Owning and letting a house in the Nice area I can't disagree with those suggesting to invest in London and rent in france.
When you let in france apart from the already mentioned 35% tax and the property tax, you also have the Taxe d'habitation unless you rent on a yearly base, which almost doubles the property tax.
It is also quite difficult at the moment selling at no-loss and with the current government I can't see things changing for the better soon (2017).
And don't forget that they (well a part of me too) are french... so you might get fed up from them quickly biggrin