Overseas investors flock to France

overseas property in franceFrench property is rapidly becoming the place to buy in Europe again for overseas property investors. During the boom years, many property investors took mortgages out on homes in their own countries to purchase property abroad however with the recent economic shakiness, overseas property purchases dwindled.

However many investors are now looking to buy again although many are looking to buy properties in established markets which appear to be relatively stable – and France, with it’s fairly stable property market and solid financial system appears to be heading up the list.

British buyers in particular appear to be quite keen on French property, however instead of mortgaging their own homes, they are looking for Euro mortgages. This is partly because many are hoping to stretch their cash further as, if expected, the pound starts to strengthen against the Euro in the long-term. At present, the Euro/sterling exchange rate is fluctuating however many financial experts believe that the sterling is undervalued and will rise again in the medium-term.

Overseas property investors are still able to take out Euro mortgages in France where banks are happy to lend to foreign investors – unlike their counterparts in Spain and Greece who have been hit hard by defaulting customers. It is still possible to borrow 100% of the property price, although a LTV ratio of 85% will generally see a much better rate of interest.

Despite having a relatively stable property market, prices have fallen across France by around 15% from their peak so there are plenty of excellent properties to choose from. Properties away from hotspots such as in the Riviera offer great value for money however they may take a lot more marketing and drive to rent out on a regular basis.Properties in hotspots are, of course, higher however they will be easier to rent out on a regular basis.

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