Why invest in Buy-to-Let in France?

Rental property market in France is strictly regulated. Unlike many other markets around the globe France operates a highly regulated rentals market, largely due to the high dependence on rental accommodation in France as a principal property.

 Insured rental income through recognised insurance companies that will protect the investor against rental voids and tenant disputes

 Long term tenants. Residential rental leases tend to be on a 3 year basis coupled with the fact that this is the tenant's principal property and normally not an interim property it is likely that you will keep the same tenant for extended periods of time. It is possible to break the lease, see point 5.

 Fully managed and hassle free. Since there is a high dependence on rental property in France, management companies are very sophisticated and take on the property as though it were there own. This helps to relieve the investor of day to day running issues. The management company will ensure properties are well maintained as well as arranging for any repairs to be made if required.  

 Possible resale at any time. While tenancy agreements are firm commitments on both the owner's and the tenant's part it is possible to exit the agreement by the owner if (a) the owner would like to take back the property as his/her principal residence or (b) would like to sell the property.  

 Excellent captial growth prospects. Owning a buy-to-let property in France presents some very good capital growth opportunities as the country changes shape, and if you share our view, to the advantage of the investor. Selling a residential property without being locked into an 11 year lease agreement allows you to take cash-in on rising property prices earlier.

 Deductible expenses against income tax on rental income. There are a number of expenses that are tax deductible from any tax liabilities on rental income. These include;
       
       Depreciation of management fees
       Insurances paid on rents
       Tax fonciere
       Refurbishment or renovation works
       Interest paid on loan
       Bank guarantee fees, mortgage fees, bank fees
       Co-propriete charges non payable by the tenant


The opportunities for Buy-to-Let in France are endless. There are the obvious cities; Paris, Lyon, Montpellier and then there are the towns where you really need someone on the ground in France to assist you.

We strongly recommend opting for a new build property bought off-plan for the advantages such as reduced legal fees and purchase fees, ten year building warranty and stage payments.

French Property Investment, based in the city of Pau in South West France, are very well positioned to advise you on opportunities throughout France. To have an indepth conversation about the Buy-to-Let opportunities in France contact a sales consultant today.