Things to Consider Before Investing In Real Estate in France

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Investing in real estate is a very lucrative proposition if you choose a location where prices have steadily increased over the years. But it is practically impossible to come up with such huge amounts of money, especially if you are buying large properties. There are many such properties available in France but if you don’t have the financial resources, you will have to look for mortgages. A mortgage is where the property you buy will be evaluated and an amount which can be recovered by the sale of that property will be granted to you. You will have to pay it back with an interest. There are a lot of other technical details involved.

Advantages of Investing on Real Estate in France

First and foremost, France is a great country to own property in. There is not a single person who will not like the atmosphere in France. It makes for a great getaway spot in case you want to take a holiday. Secondly, over the years, there has been a steady increase in the real estate prices in France. Experts and analysts are of the opinion that this trend will continue for the next twenty years at least. So, you don’t have to worry about your property losing value over the years. If you change your mind a few years down the line, you can always sell the property by foreclosing your mortgage.
Mortgage Rates are Low but Exchange Rates May Not Be If you compare the mortgage rates in France to other countries like the USA or the UK, then they are relatively lower. So you might feel that you have a good deal. If you are residing in France or any other country and earning in Euros, then France is definitely a good country to invest in. However, if you are out of the Euro zone, then you might have to think about the exchange rates. Even with the lower mortgage rate, you might be paying more than what you would have in the UK or the USA.

Ask For the APR

When you approach lenders for mortgages, enquire about the annual percentage rate (APR) first. This should be the primary constraint on which you choose the mortgage lender. Some lenders may brush over it saying that it is consistent with the other mortgage lenders and shift your focus to other details. However, the lenders are legally obliged to give you the APR. You can pick the lender who offers you the lowest APR.

Fees and Repayment Options

Most people assume that repayment structure will be the same irrespective of where you take the mortgage. This is a common misconception. There will be a few fine print details which are different for different vendors. Once you have decided that the APR of a particular lender suits you, have a detailed discussion about all the fine print details. Do not hesitate to ask questions as your hard earned money is at stake. The processing fee for mortgages is not a negligible amount. Sometimes it might be so exorbitant that you will feel like canceling the whole mortgage deal. Clarify about the processing fees before you decide to sign on the dotted line.

About the Author: The author, Penny, is an expert on finding property in Dordogne and Dordogne property laws. You can get in touch to know more about real estate in Dordogne.