‘Exceptional’ market for French property hunters
A strong exchange rate, cheap mortgages and the tax exemptions handed to leaseback properties have made France an appealing prospect for overseas buyers.
France Buying Guide’s Tamsin Roser said the Alps, where property prices are said to be more stable and rental demand is high, will be a key growth area.
“The euro is hovering around a seven-year low against sterling, making property across the Eurozone cheaper,” she said.
“Homes in the French Alps are often deemed a safe long-term investment, with a reliable rental record, thanks to strong demand from both the domestic and international markets.
“For buyers who want a ski home that looks after itself, there more opportunities than in other second home destinations to purchase with a leaseback contract. Complementing savings on the exchange and mortgage rates, leaseback properties are exempt of VAT, making it a triple whammy for British buyers.”
Roser described the current market as ‘exceptional’ and said the French Alps had particular appeal as properties in Switzerland were becoming prohibitively expensive.
“French ski homes in particular now appear great value for money, thanks to the cost of comparative homes in Switzerland suddenly rocketing to foreigners with the surge in value of the Swiss franc.
“Meanwhile, French mortgage rates remain at historic lows, for both residents and non-residents, with typical deals starting at just 2.2% for a variable mortgage over 10 years, and 3.25% for a 25-year fixed rate mortgage.”