Add listing Log in

French novelty

01.09.2007
Author: Louis TAYLOR
48
France for tourists is an ancient architectural masterpiece, magnificent palaces and cathedrals. France, for those who are going to own real estate here, is primarily modern buildings. Buying new housing in a new building is the most popular and profitable way of investing, characterized by high reliability to get a stable income.
Buying a new home in France offers a lot of advantages. Firstly, these are lower prices in comparison with the secondary market, adequate operating costs, the possibility of choosing between housing arrangement or lack thereof, the use of modern materials and technologies, and a 10-year construction warranty.
Most French citizens prefer to rent a house rather than acquire ownership. So the opportunities for investors buying real estate for rent are great here. At the same time, new buildings are an ideal option, allowing you to get an excellent ratio of reliability and return on investment.
In France, like in no other European country, the leaseback scheme has been developed, which involves the purchase of housing with subsequent transfer to the management of a specialized company and obtaining a guaranteed income. It is perfect for those who want to invest money in real estate abroad and make a profit without participating in the property management process. This scheme is supported by the government of the country, so that investors choosing leaseback can receive a VAT refund in the amount of 19.6% of the property value. The management company takes over the operation of the property, repairs, search for tenants and settlements with them.
Roman Shendrikov, Director of Development at Cosmopolit, recalls another important advantage of buying real estate under the leaseback scheme: "Depending on the terms of the contract, the buyer has the right to live in his property for 2 to 4 weeks during the year, which makes it attractive to purchase several leaseback projects in different regions. In addition, you can turn down this opportunity, preferring to get a higher income."
"Since the leaseback program in France enjoys state support, it is possible to obtain a loan from a bank at minimum interest rates from 3.7 to 5% per annum," Roman Shendrikov continues. - And since, regardless of the economic situation in the country and any other indicators, the management company undertakes to pay the owner 4.5-6% per annum, the rent can be used to repay the loan. At the same time, everyone should clearly understand for what purpose they are buying real estate abroad. This will help not only to get the maximum benefit from the purchase, but also to avoid unnecessary expenses. Recommendations and suggestions for those who want to buy real estate for their own living are fundamentally different from the options for generating regular income or subsequent resale."

The rise of Brittany
Small or medium-sized cities with an active population can be a good start for entering the market of new buildings for rent. Brittany, a region located in the north–west of France, is attracting more and more attention from investors. Business is starting to develop here, companies are opening up, and the state is investing in the development of transport infrastructure – high-speed railways, regional airports, and highways.
Brittany is characterized by steady economic and population growth. From 1990 to 1999, the region's population grew annually by an average of 12,200 people, mainly due to the French moving in. It is assumed that the population growth will continue until 2015, which means that the demand for housing will also increase. The real estate market in Brittany has good potential for growth and is at the very beginning of the recovery. According to the Federation of French Real Estate Agencies (FNAIM), apartment prices in the region increased by 9.5% last year, while the average cost of housing here increased by 9.8% between 1995 and 2006.
One of the most interesting cities for investment in Brittany is Camaret–sur-Mer, located 64 km from Brest. There is a demand for long-term rentals from the local population, in addition, the number of tourists increases from year to year, which in the summer months exceeds the population of the city by three times. In this city, Assetz France is selling real estate in a complex of 26 one- and two-bedroom apartments. The complex has been specially designed to meet the requirements of local residents and customers looking for long-term rentals as much as possible, it is located close to the city center, shops and schools. Prices start from 110,000 euros, including transaction processing.
The project is scheduled to be completed in the spring of 2008. The guaranteed rental income is 4.7% of the value of the property, that is, approximately 4,500 euros per year, while the terms of the contract are reviewed every three years. For investors who do not want to take an active part in renting out housing, this is a simple and reliable option.

For golf and wine lovers
A characteristic detail is that large foreign developers are starting to work in France. Among them is the Canadian company Intrawest, known for creating first-class ski resorts in North America. However, in Europe, this company will build a project that is not related to winter holidays. The luxurious Domaine Haut-Gardegan Golf and Spa Resort will have excellent leisure facilities corresponding to a four-star level of service, as well as an 18-hole golf course. But the main highlight is that the complex is 15 minutes away. from the center of the famous Saint-Emilion wine region, so that the property owners and their guests can enjoy both the magnificent scenery and the fine wines.
The existing buildings will be reconstructed to create a center that will house trendy boutiques, cafes, a culinary school and a gourmet restaurant where you can taste truly French dishes. The golf course will occupy an area of 70 hectares, it was designed by the famous American designer Tom Lehman. Those who do not play golf can visit the spa, go wine tasting, take cooking lessons, play tennis or swim in the pool.
The entire project will include 400 units of real estate. The first stage, the Castel de Bellevigne complex, is planned to be completed by mid-2009, it will house apartments with a number of bedrooms from one to four. Prices start from about 300,000 euros – for one-bedroom apartments. The property can be rented out through the operator Intrawest Hotels and Residences.

And again the mountains
The Bourg-Saint-Maurice ski resort is located in the heart of the French Alps. From here you can easily reach resorts such as Tignes, Val d'Isere, La Rosiere, Vallandry and La Plagne. By cable car, it takes just 7 minutes to get to Les Arcs 1600, one of the seven stations of the Les Arcs resort, as well as to the Paradiski ski slopes, the total length of which is 420 km. Millions of pounds are being invested in the development of this resort, so it is logical to expect that real estate here will grow well in price.
The resort is located right on a major highway, but a bypass road has recently been built, so that most traffic no longer passes through the center, where MGM is building a new Le Grand Coeur resort complex. It will be located just 5 minutes away. walking distance from the railway station, it consists of 63 apartments located in three buildings. It offers both studio apartments, the cost of which starts from 120,000 euros, and duplexes with four bedrooms and two bathrooms, which can be purchased for about 450,000 euros. Almost all apartments have balconies or terraces, decorated with wood or stone. Note that when buying, the entire amount is paid immediately.
Another MGM project will also be of interest to investors. The Le Coeur d'Or residential complex was built specifically for tourists. It will include 45 apartments, which are sold under the leaseback scheme, a cinema, a small restaurant, shops and a bowling center. Prices are about 3,500 euros per 1 sq. m. The completion of the project is planned for December 2008.

In the atmosphere of the Middle Ages
In the south of France, 30 min. A short drive from the medieval fortress city of Carcassonne, the French real estate developer Garrigae Investissements is building a family resort called Les Jardins de Saint Benoit. The resort is a continuation of the neighboring village of Saint Laurent de la Cabrerisse, and will be designed in the style of local architecture. The medieval gardens bordering the resort are being restored, where residents and their guests can spend their leisure time. The residential part of the complex will consist of 141 townhouses with one and two bedrooms, as well as 30 villas with 3, 4 and 5 bedrooms. Each house will have its own garden and terrace, each villa will have its own swimming pool. The resort will have a restaurant, an outdoor bar, indoor and outdoor pools, shops, a spa and a children's club.
Real estate here can be purchased both in ordinary ownership and under the leaseback scheme. A furnished one–bedroom townhouse costs from 205,000 euros, and a three-bedroom villa costs from 442,000 euros. The high level of service and favorable climate will attract visitors here all year round, which opens up good prospects for renting real estate.

0
All articles by this country
All articles
Property in France
Discussion