Buy to let was all the rage in the UK in 2004 and 2005, and the low
cost of mortgages soon pushed property prices up to the point where
first time buyers have to find 6 times earnings to get on the
ladder.
At the same time, the glut of buy-to-let properties meant that
many amateur landlords found they could not get the level of rent
they wanted to pay off their mortgages and maintain and improve the
properties.
New entrants to the UK buy to let market on doing their sums are
finding they'll be getting a return of maybe 4% against a potential
drop in value of their asset.
Bad news!
Not so in France, where the price of property is still low but
rising over the last two years at an average of 15%, and is likely
to go on rising. Property in France also attracts not just
long term domestic rental but also holiday lets. For example, a town
house in La Rochelle bought for £91,000 in 2002 is now worth around
£120,000, and has according to the owner has brought rental income
of about £4000. With very low rates and a better class of tenant,
the gross return is in the region of £25,000. The owner of course
has his eyes set on buying another property.
So if you're looking for something to do with Grannie's
inheritance, forget buy-to-let in the UK, forget world cruises
around the Isle of Wight - and invest in French property
instead.
Regions we suggest you look at are Normandy, central Brittany,
Charentes-Maritime and the south of France.
If you'd like any further info on properties available, click on
the search link above.
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