Innovative land & property investments
Investment Property in France
Buying Guide
Property ownership
Moving in
When you move in, you will need to make sure you have all services connected and signed over into your name.
This is one of the points that can frustrate people more than any other, as the utilities companies are famously slow in reacting to these requests.
You can expect to wait anything up to a month or longer for your details to be changed, and for a phone or internet line to be established can be a process that moves excruciatingly slowly.
Investment returns
As previously discussed, the market for property in France is mature, though there is a real opportunity to make significant capital gains.
The maturity of the property markets is more a signal of its stability, which means that in many regions you will find steady growth, without the spectacular gains that are claimed elsewhere in the overseas property world.
In the most popular regions, like Brittany and the Dordogne, plan for high-single figure growth, while more exciting gains can be expected in the south-west or the up and coming areas just outside Paris.
Rental returns
Although the tourist market in France is exceptionally strong, it is wise to plan any rental income you receive based on the worst-case scenario.
In that way, you can make sure that the rentals will cover your costs across the year, and everything else is a bonus on top.
The real way to make money on this type of property is when you come to sell on.
Selling on
When you come to sell your property, you could be liable to pay capital gains tax (CGT) on any profit you (hopefully) make on your property.
The system depends on how long you have owned the property in question.
If you have been the owner for over 15 years, there is no CGT to pay; after five years of ownership, the rate is reduced by ten percent for every subsequent year of ownership.
If you were to sell during the first five years of owning the property, CGT is charged at 16%.
Key facts
- Although the utilities companies may be slow, make sure you have all services connected and signed over into your name
- Selling on is where the real money is to be made in the French property market
- Plan for high-single figure growth in popular regions, like Brittany
- Exciting gains are possible in the south-west and Paris’ up and coming outskirts
- Capital gains tax (CGT) is liable on any profit made on a property owned for less
Downloadable Reports and Documents
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