Positive housing News from the Experts...
Category: Finance > Finance | 13th Dec, 2011
A research team recently reported that house prices in France rose by 9.5 per cent in 2010 and this followed a figure from the Notaires de France (who act like solicitors do in the UK but also sell property) which quoted prices rising by 6.9 per cent last year. This more sustainable supply/demand scenario has ensured that the French lenders have a stronger position in this sustained credit crunch than lenders in other countries and this should therefore help support a more robust French property market. A more reflective figure is probably the increase in the overall number of house sales from 590,000 in 2009 to almost 800,000 in 2010. France has a well-established property market for non-residents and international second homeowners that, compared with other overseas markets, has a smaller percentage of new-build and off-plan properties. The French are careful with planning regulations so it is difficult to get permission to build until all avenues have been covered including local infrastructure, environmental issues and long-term town planning. The buying process in France is well regulated and as such, international investors feel more secure, practices such as under-declaring the value of a property to reduce tax liabilities is virtually non-existent in France. Second homes are carefully co-coordinated, such as the purpose-built French ski resorts, so as not to allow ghost towns to spring up where properties are only used for a couple of weeks a year. If you look beyond the statistics to the reasons why perhaps you also bought in France then you will appreciate second homeowners buy property because they love the country and the French culture. Those reasons have not changed as France still regularly tops quality of life surveys. You should always seek professional financial advice on personal circumstances but it seems apparent that despite the global crisis, people still want to buy in France so your investment is sound.
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