France may never be better value than it is now
“France may never be better value than it is now”, says Trevor Leggett, Executive Director, Leggett Immobilier. “Prices are at their lowest since 2003 - and with borrowing in France cheaper than ever for French tax payers because of new MIRAS-style tax breaks taking effect, as well as inheritance tax changes, which have freed up the market - now is definitely the time to snap up an investment as there are some real bargains available.”This advice is backed up by the company’s recent research, which shows that nearly half of house hunters looking to buy in France are still attracted by the good value property prices.
Trevor Leggett continues, “France has traditionally been a country that has offered UK buyers excellent value for money along with the safety and security so many are looking for, with low crime figures especially in rural areas. Our survey shows that this French reputation for good value property still holds true, now more than ever.”
Interestingly, a quarter of those questioned are also looking to move to France to reduce the financial pressure on them. Trevor Leggett says, “With all the publicity in the UK about mortgage rates in general, the recent problems with UK fixed rate mortgages with the mortgage rate fixed for only a short term such as 4 or 5 years, problems with debt and credit cards, along with the sub-prime market scare, it is no surprise that our customers want to reduce their financial burden.”
Trevor Leggett continues, “In France, the situation regarding fixed rate mortgages is quite different – the French have always preferred and, indeed, still prefer a fixed rate for the entire term of the loan, which could be up to 30 years, depending on the age when the mortgage is taken out. And this is despite French banks encouraging them to take out a variable rate mortgage, or what in France they call ‘cape 2%’, which is similar to the UK and less risk for the bank. Fixed rate mortgages for term are not generally available in the UK and if you can find one, they are very expensive. It must be said that French people do not move as frequently as the British and they tend to plan for the longer term. They do not like interest only mortgages and prefer to pay off the capital - a very different mentality.”
Trevor Leggett ends, “We are seeing strong levels of interest right up until the end of 2007, showing that the slowdown in the UK market does not seem to have impacted upon the strength of demand. With most house hunters being cash buyers or small mortgage borrowers, this sector of the market seems to have escaped the worst of the sub prime fall-out in the USA.”
Buyers interested in finding out more about buying in France should visit frenchestateagents.com.