France set for property boom?

Nicholas Sarkozy, the new president of France, has made suggestions that he will be making changes to the current inheritance tax laws in the new future. His intention is that people of ‘average wealth’ will not have to pay inheritance tax on properties in France. If his proposals do become law, anyone who owns property in France – both natives and foreign investors – may find they have lower costs during the transfer of property upon the death of the property owner.

The French property market is generally seen as a low-risk real estate investment with the market staying fairly stable. If Sarkozy does change inheritance tax laws, it could have a huge effect on property investment and it may help kick start a mini propeprty boom.

Historically, the French have tended to rent properties rather than own. With the changes to inheritance tax, it is expected that more locals will look to own their own bricks and mortar, hence driving up property prices. This could result in undersupply, pushing prices up.

There is hope that Sarkozy will also shake up some of the bureaucracy across the property board to enable property transactions to be completed quicker and with less hassle.

2 Trackback(s)

  1. From Paris top for European Investment - Buying Foreign Property | Jul 5, 2007
  2. From The Sarkozy Effect - Buying Foreign Property | Aug 6, 2007

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