Buying a Holiday let in France-any tips
Discussion
Person I met recently has a apartment in St Tropez up for sale, says its's 200k euro and rents out on a 400 to 700 a week for 10 months a year..they were rather blase about maintenance/management costs being cheap..as most bookings from holiday let sites and they have a little old lady who does the changeovers...so tips from the PH experts required please???
I would say be very careful as I can imagine France starting to increase taxes on this sort of thing soon.
However, I would certainly consider it with a lot of research. I don't yet have any holiday lets but you may want to check on here: http://www.ownersdirect.co.uk/ to see how many similar apartments there are available in the area, the rental prices and how full they are (you can check availability).
HTH
M
However, I would certainly consider it with a lot of research. I don't yet have any holiday lets but you may want to check on here: http://www.ownersdirect.co.uk/ to see how many similar apartments there are available in the area, the rental prices and how full they are (you can check availability).
HTH
M
I looked at doing holiday lets for our place (in France) and came to the conclusion that it wasn't worth the hassle.
First of all, if you are in the UK, how are you going to manage the property? The "little old lady" may be great for cleaning and changing the sheets, but how will you deal with plumbing, electrical or other problems and maintenance?
Then there is the issue of French tax and bureaucracy. As I understand it, as a non-resident, you are taxed on 50% of the gross rental income, irrespective of expenses, and whether you make a profit or not. Add in the likelihood of social charges (15.5%), Taxe Fonciere, Taxe d'Habitation, submitting French tax returns, managing bookings, breakages, French inheritance laws, capital gains, exhange rates, and so on, and so on. More info on lettings and French tax
It obviously works for some, but personally I would prefer a rental property in the UK as an investment.
First of all, if you are in the UK, how are you going to manage the property? The "little old lady" may be great for cleaning and changing the sheets, but how will you deal with plumbing, electrical or other problems and maintenance?
Then there is the issue of French tax and bureaucracy. As I understand it, as a non-resident, you are taxed on 50% of the gross rental income, irrespective of expenses, and whether you make a profit or not. Add in the likelihood of social charges (15.5%), Taxe Fonciere, Taxe d'Habitation, submitting French tax returns, managing bookings, breakages, French inheritance laws, capital gains, exhange rates, and so on, and so on. More info on lettings and French tax
It obviously works for some, but personally I would prefer a rental property in the UK as an investment.
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