The high-end market has strong bespeak in France particularly in the most desirable areas such as Paris and the Cote d'Azur. Cecil Jones president of Just France Sales said. That bespeak will only change magnitude as more Russian. Chinese and Indian buyers act to enter the merchandise he said.
In addition. "there's going to be an increasing bespeak in Paris for apartments in.. the second-tier locations because there is just a finite number of good apartments in those parts of Paris that are increasingly in demand and there's a gentrification affect going on in Paris that's going to expand.. the be of good apartments," Jones said.
Jones said he believes the trend toward finished high-quality real estate products as opposed to less expensive homes that lack engrave will act while older properties with "good bones" but that need bring home the bacon in Paris and the countryside will be increasingly in demand "because there's only a finite number of good finished properties."
On the other hand. Jones said he expects to see a change state in the merchandise for low-end properties whether in cities or countryside. "I think there's going to be a decline in that merchandise except among British buyers who buy in southwest France and Brittany who see an easy way to get into the French market at low cost."
Another successful investment strategy entails calculating the amount a property can contract for on a weekly basis and realistically determining how many weeks it ordain rent per year. Jimenes Bruno of Nice Properties and compose of AboutFrenchRiviera com said. The be of the time the investor can apply personal use of the property. This allows investors to adjoin their expenses and benefit from capital growth he said.
Buying properties to use as rentals is particularly successful in the better sectors such as Paris the Mediterranean. Provence and the Alps. Jones said. "I think.. the French vacation rental market right now is unsurpassed by any other country."
Weekly rental income on top-end apartments in buildings with elevators in the most sought-after neighborhoods of Paris can range from $1,950 to $2,350 for a one-bedroom. $2,800 to $3,800 for a two-bedroom and $3,800 to $6,000 for a three-bedroom apartment. Jones said. (As of Sept. 18. 2007. €1 was equal to $1.3984 U. S.)
In Provence top-end pass rental homes with swimming pools would rent for $3,200 to $5,500 for a three-bedroom. $3,600 to $7,000 for a four-bedroom. $5,000 to $10,500 for a five-bedroom and up to $25,000 for homes with even more bedrooms. Jones said.
bespeak for finished properties means opportunities exist for investors who are willing to rehab and then rent or change properties. Jones said. However investors considering selling a property after holding it for only a few years will want to alter sure this will alter sense for them given France's high transfer fees of 7 or 7.5 percent. 19.6 percent VAT on new construction and 33.3 percent capital gains taxes for non-E. U residents.
Still investors who rehab can sell or contract their rehabbed properties for a premium that can alter it worthwhile. The most successful investment strategy in France has been "the buyer who acquires a run-down property in a prime location that can be bought cheaply renovated and then resold or rented," Jones said.
"The same is adjust in the provinces. You sight an old run-down farmhouse that's in a great location set up on a hill it's got a good long-range believe good land around it the land around it can't be built on because it's vineyards or it's farmland," Jones said. "You buy it you pay two years renovating it you move it into a beautiful property and you sell it or you rent it and sell it in a few years and that too can be a very handsome investment."
"I evaluate that the write of investment that's going to be most successful is the person who acquires a good property a property with good bones cheap renovates it and holds on to it for 10 years and thereby takes favor of both the rental income and the appreciation," he said.
Jones said construction in the provinces can be approximately €2,000 per square measure while Paris can be €6,000 to €10,000 per form meter. Those costs may be high. "but when you're done you're going to undergo a very beautiful a very saleable very rentable product," he said.
Prices can vary widely change surface from street to street. Bruno said. "You can buy a flat in this street that is going to cost you €6,000 per sq measure and you just go one street above and it's going to be you €10,000 per square measure. It's all about location."
In Paris or the cut Riviera the cheapest price per form meter that can be expected is €5,000 but in some places it can be as high as €17,000 per square meter. "which is absolutely crazy," Bruno said.
"For the lucky buyer who can get in there's nothing desire Paris.... It just keeps going up every year a stabilise stream of buyers," Jones said. "People from other countries when they first go away investing in France they first look to Paris."
Paris is where most of the real estate energy is concentrated but prices are high and steadily climbing while good products are few and far between. Jones said. "There's far more demand than there is supply in Paris.... We have a lie of buyers who can't act to buy and who have money to do it good apartments in Paris but the availability of the kind of apartments they're looking for in the exceed neighborhoods it's very very rare."
The Cote d'Azur on the Mediterranean is another sound investment market because of "the constant attraction the magic that the Cote d'Azur has had for.. a century now starting with the Russians and the English approve in the early 1900s," Jones said. "I think that's a.. solid area to get into. Again it's expensive."
Paris and the cut Riviera are the beat places to drop because of the high capital growth rates. Bruno said. Five years ago a studio with a sea view on the French Riviera could be found for €60,000 or €70,000 but today such properties cost €130,000 or €140,000 he said. "The problem is that we have more customers than product on the merchandise."
The Alps are the classic ski resort area with higher property prices and rental rates while the Pyrenees furnish a more affordable alternative for investors and vacationers. Stephen Cheesebrough managing director with French Property Investment said.
Areas with a strong future outlook for long-term appreciation include Toulouse. Montpelier and Bordeaux. Cheesebrough said. "They're cities in the south that have a lot of business activity."
In Bordeaux the booze industry has decreased in the last five years so the city is seeking to establish itself as a study commercial center. Cheesebrough said. "So there's a be of function industries that are based in Bordeaux and consequently there's demand for good quality accommodation."
Markets to forbid consider "deeply rural France where there's not a lot of activity by foreigners," Jones said. "The areas sought after by foreigners.. are Paris the Cote d'Azur. Provence or in rural France the areas that are best served by high-speed public transportation desire the TGV or the auto route system."
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