France still ‘wide open’

There are still bargains to be had in France, despite the credit crunch, claims Assetz...

Yet this seems to be far from the case. France retains an attractiveness and variety that should continue to keep the levels of interest high.

At least, this seems to be so in the case of the Cote d'Azur. This Mediterranean hotspot, famous enough for its sun, sand, yachting and proximity to inland wine-growing areas, nightlife and cultural melting pots has now attracted a new online service, run by property specialist FrenchEntree.

Stating that the region is one "which will always grow in terms of popularity", the site has launched dedicated sections for all the usual suspects: Nice, St Tropez, St Raphael, Cannes, Antibes and Monaco (which, of course, isn't actually in France) among others.

Many different  markets

Confidence in this area, where buy-to-let investors will find plenty of tourists to rent to, is one thing. But France has many different markets for numerous tastes.

This being the week of Valentines Day, the "most romantic city in the world" - at least according to a car advert - had its charms featured in the Daily Telegraph this week. Living in Paris, of course, has taken on a new potential dimension with the arrival of the faster Eurostar, making possible a dual life of living in France and working in London.

For those looking to buy property there the fashionable areas remain expensive, the paper notes. Left Bank apartments now cost the tidy sum of £6,785 per sq metre. A rather more affordable offering would be a one-bedroom apartment in the Marais district at £285,000. In the same district Knight Frank is said to be trading loft apartments for £370,000.

Of course, in a city as large as Paris there are bound to be a varied range of flats and of course different attractions and features in each area. As ever, of course, the key for investors is to find something that can either be rented out or bought and then resold at a decent profit.

Extra flexibility

Getting into the property market in France to start with is not difficult, VEF Property has said. It noted in particular that if people were trying to buy in France but found that the sale of a UK property to fund the purchase was delayed, then it would still be possible to take out a short-term mortgage to the value of 85 per cent of the value of the French property.

This, the firm noted, gives the buyer new options. For one, such deals allow a year's grace for the buyer to redeem the mortgage with no penalties, allowing an extra 12 months to sell the UK house, or alternatively, the UK house can be rented out to pay for the mortgage in France.

By having such deals available, UK property investors may just find they have that little bit extra flexibility to enter the French market or expand an existing portfolio there.