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Stubborn investors opt for France

19th September 2006 | back to article listings BACK    print this article PRINT

Although some news reports have suggested that jet-to-let property investors have been turning to Eastern Europe for quick investment gains, new research shows that demand for property in France continues to be very strong.

Data collected by holiday-rentals.co.uk shows that property investors nowadays do not fit the stereotype of a suited faceless investor banking on big returns before selling the property on to the highest bidder, but are more likely to be people on an average income who happen to fall in love with a particular area abroad.

Recent statistics from the Fédération Nationale de l’Immobilier (FNAIM) reveal that property prices in almost every region in France increased by over ten per cent in the last year.

Fuelling this strong growth is not so much the returns on offer for the demand for property in the country seems unaffected by the great potential for high returns in the, albeit often volatile, markets of the east.

Also revealed by the research is that investors no longer need to be super rich to expand purchase a holiday home; a large number of owners in France's Aquitaine region were found to have a total household income of less than £50,000 a year and the most common price of purchases was between £100,000 and £150,000.

Surprisingly, property investors were found to not be primarily motivated by the potential profits to be made of buying a French home. Love of the area was cited as the most prominent reason for investment, followed by rental potential, with ease of access from the UK coming in as the third most influential factor.

It thus appears that the jet-to-let sector has expanded to include those primarily concerned with purchasing the ideal second home, those who are looking at a long-term investment both in terms of financial reward and future happiness. This is supported by the finding that the potential for re-sale emerged as a minimal influence on investors' decision.

But buying with the heart has its unexpected pitfalls as James Tennant of the Removals Group has warned. Although moving abroad should not be as stressful as is often portrayed, he urged budding investors to budget for those unplanned costs that often strike as people prepare arrive at their property for the first time.

"People often expect charges and protocol for moving abroad to be consistent across all countries. We always advise to expect the unexpected when entering a new country. Allocate some spare budget for unexpected costs," Mr Tennant said.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/2975.html. Alternatively, please see our full press release archive.

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