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Buy to let options?

Posted by Louise29 - Created: 5 years ago
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5 replies (Showing replies: 1 to 5)

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Posted by Remendado - 5 years ago

Hi, Louise. As you may have surmised from the replys posted, investment in property in France is not for the faint hearted. However, I believe there is a third option re: rentals, that is rent to a student on a 9 month contract (Sep-May). Most standard form French letting agreements I have seen provide for this option. Just so you know.

You might want to look outside France (and, indeed, outside Europe) if you are looking to make a property investment that might generate a decent capital gain in the short term (i.e. 5 years or so.)  The market in Florida, for example, has been coming back this year, though it is WELL down on what it was in 2007.

I am in in the Tampa Bay area, though I follow AngloInfo Riviera because I have a property in Nice. Let me know if you would like more info on property investment here.

 

 

 

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Posted by laughingboy-409220 - 5 years ago

You say 'temporary investment' - but the British mindset of 'property=investment=proft' doesn't really work in France. People buy houses to live in rather than as an investment, driving house prices up isn't a national obsession, and in most regions prices don't rise significantly year by year. As has been said, in the short term you would be lucky to do much more than get your money back, if that, after paying the purchase fees and annual land taxes. This same fact means of course that there is no rush to get onto the property ladder - you might as well save your money, let it earn a bit of interest and buy a house when you're ready, the prices won't have shifted much.

Buy to let could be a viable way of investing money to produce an extra income but you would need to commit to making a longer-term investment and setting about it in a business-like way. 

 

 

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Posted by Louise29 - 5 years ago

Thank you for taking the time to reply, really appreciate it, it just seems a waste not to try as we live at work andhave some savings, i will really look into it but wanted to get some real feedback from real people as opposed to websites.

 

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Posted by Garonne - 5 years ago

If it's to let, a standard French contract is 3 years for unfurnished and 1 year for furnished accommodation.  There are no other options available under French law.

There are no get out clauses apart from if the tenant defaults on the rent in total for 2 months consecutively, and under no circumstances whether they pay the rent or not can you evict between 15th November and 1st March.

You will be liable to declare the rent on your annual tax return and will be subject to Prélèvements Sociaux regardless of your tax liability.

Be warned!!  Some people rent out properties successfully long-term, but there are some horror stories out there too!!

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Posted by Ras-214972 - 5 years ago

Be aware there are a lot of costs involved in buying and selling property in France, much more than in the UK. I am not sure it is a good investment for just a couple of years because of these costs. You should think longer term than that (5 years+).