Why invest in Buy-to-Let in France?
There are numerous possibilities to invest in the “buy to let” market in France. Why should you consider the more traditional long-term letting investment than more touristic alternatives?
Rental property market in France is strictly regulated. Unlike many other markets around the globe France operates a highly regulated rentals market, largely due to the high dependence on rental accommodation in France.
Insured rental income through recognised insurance companies that will protect the investor against rental voids and tenant disputes, for peace of mind.
Long term tenants so low turnover. Residential unfurnished rental leases tend to be on a traditional 3 year basis coupled with the fact that this is the tenant's principal property and normally not an interim property it is likely that you will keep the same tenant for extended periods of time. It is possible for either side to break the lease, subject to notice periods on each side.
Fully managed and hassle free. As there is a high dependence on rental property in France, management companies are very sophisticated and used to handling all aspects of a rental. This helps to relieve the investor of day to day running issues, especially important if the investor lives in another country or spends a lot of time outside France. The management company will ensure properties are well maintained as well as arranging for any repairs to be made if required.
Possible resale at any time. While tenancy agreements are firm commitments on both the owner's and the tenant's part it is possible to exit the agreement by the owner if (a) the owner would like to take back the property as his/her principal residence or (b) would like to sell the property.
Excellent captial growth prospects. Owning a buy-to-let property in France presents some very good capital growth opportunities as the country changes shape, and if you share our view, to the advantage of the investor.
Deductible expenses against income tax on rental income. There are a number of expenses that are tax deductible from any tax liabilities on rental income. These include:
- Depreciation of management fees
- Insurances paid on rents
- Tax fonciere
- Refurbishment or renovation works
- Interest paid on loan
- Bank guarantee fees, mortgage fees, bank fees
- Co-propriete charges non payable by the tenant