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Initially, people thought twice before investing in French properties. But ever since 2000, there has been a tremendous increase in the numbers, as more people have started buying homes for different investment purposes. Think logically about every aspect of the property you want to invest in. The old-fashioned or quaint exteriors aren’t the only deciding factors. You must look at other aspects as well. They may be in the wrong locations, maintenance may be tough or they may lack the facilities that you need.
Many ways are there for you to choose and invest in the property.
Home investment: Most people buy property, re-decorate it and then sell it when the market prices are in their favor.. If this is what you want to do then you need to think more on the lines of potential re-sale than rent ability. But the property being in France, you will also need to focus on the tax implications.
Holiday home: Some people invest in property in France and use it as a secondary home. This house serves as a holiday home. But this has a disadvantage; reduced rental benefits. Sometimes the period you want to rent out to tourists and the period when you want to visit that home may clash. But irrespective of all this, the tax authorities have to be kept well informed.
To-let: This is the type of investment, where the property is let out on rent right from the time you buy it. You can either let out the property for full-time residential purposes or as a holiday home. Since the past few years, this is the rage in France. The major advantage is that you not only get rent potential but also any other additional capital.
However, you don’t get to utilize the facilities of the property. You can take the help of letting out agencies who can also help you out with the rent maintenance. But make sure you are well aware of all the rental yields and of the benefits the property reaps.
Leasing: Another way to invest in property in France is by leasing back the property you invest in. This is becoming an increasingly popular method of investment with overseas buyers. After buying the property, you lease it back to a company who can let it out on rent on your behalf. This process reaps guaranteed returns. You can also use the property after informing the company well in advance.
Location and legalities
The location is an important factor while investing in property in France. You need to look at the general area and the specific area in which the property is located. Think of all the aspects like schools, medical care, market place and all other necessary facilities.
Also, take legal advice before investing in any property because it is essential that you don’t violate any laws or tax implications.
While investing in French property, always think long term and plan for the future. But in terms of security and stability, the French property market is the best.
Author bio: Penny is an expert associated with Cote d’Azur Villas, a leading realty company in France. If you are looking for luxury villas on the Cote d’Azur site, the company offers holiday villa rental on the Cote d’Azur as well.