How to find a good and reliable investment Property in Provence?
Provence property investment information
According to our latest research by the French 2nd Home Property Association, 38% of all properties sold in 2007 in the Provence South of France were investment properties. There's no question that investing in real estate in Provence can be lucrative, but it's important to choose your properties carefully to make sure you don't end up getting burned.
Choose the right region, neighbourhood or town in Provence
When looking to buy real estate in the Provence, location is all-important. Property investors and developers alike focus on the 3 “L’s” when buying or developing property. The 3 L’s are: location, location and location. Don't forget the old rules still apply: buy the worst property in the best Provence region, not the best property in the worst Provence region. You don't want to end up buying a property that's worth significantly more than neighbouring houses, as this will mean your investment has no room to appreciate in value because the surrounding properties are dragging its value down.
Whether you're buying an Provence investment property to rent or you’re looking to buy a Provence property to renovate for resale, a large part of your success will come down to the region or town you buy into. One the one hand it makes sense to buy an investment property in a more developing or undervalued region in the Provence. On the other hand however, it makes sense to buy a rather developed and highly valued region of the Provence. Generally speaking, many developers claim that there will always be a shortage in supply for good quality properties in Provence and Cote d Azur villas. Prices for these kind of properties are already high, but will most probably grow even more in the years to come. The easiest way of getting a feel for good prospects is just to jump in your car and drive around your area. Look for areas with a lot of development going on, or where new housing projects are planned. If you're buying a rental property, bear in mind that if you're going to be doing maintenance and repair work yourself, somewhere relatively close to a large do-it-yourself store is a good idea so that you don't have to spend a lot of time traveling to and from the property.
South of France Real Estate Information: Looking at a French mortgage
When it comes to financing the purchase of Provence rental property, lenders often require larger down payments and higher interest rates. This is because lenders know that owners of rental properties are more likely to default on mortgage payments than on payments for their personal homes. Simply put, you pay more because rental property is a higher risk investment. To improve your chances of getting a good French mortgage, it's important to have good credit and to reduce your credit card and other consumer debt as much as possible. It is also important to make sure you have a little cash reserve left over after you've bought your property. This cash reserve could come in handy when you are confronted with surprise expenses such as repairs (and periods when the house is vacant, if you've purchased a rental property).
Get to know the locale French Tax Laws
Owning a Provence investment property and/or renovating an old Provence property, can provide tax benefits. Getting to know your local and federal tax laws is important for maximizing the profits you can make from investing in real estate. You could for instance look into the possibility of making the investments in your newly acquired property tax-deductible from your rental income or future taxes on the profit you might make when selling the property. Mortgage interest payments on investment properties might also be tax-deductible.
Tax laws might also be different with regards to the area you buy your property. Some areas might offer you additional incentives to buy, buy offering additional tax breaks. Buying property in Aquitaine could for instance be more interesting then buying in a much more popular region or town in the Provence. Do your homework, choose your dream property in South France carefully and watch your investments grow.
According to our latest research by the French 2nd Home Property Association, 38% of all properties sold in 2007 in the Provence South of France were investment properties. There's no question that investing in real estate in Provence can be lucrative, but it's important to choose your properties carefully to make sure you don't end up getting burned.
Choose the right region, neighbourhood or town in Provence
When looking to buy real estate in the Provence, location is all-important. Property investors and developers alike focus on the 3 “L’s” when buying or developing property. The 3 L’s are: location, location and location. Don't forget the old rules still apply: buy the worst property in the best Provence region, not the best property in the worst Provence region. You don't want to end up buying a property that's worth significantly more than neighbouring houses, as this will mean your investment has no room to appreciate in value because the surrounding properties are dragging its value down.
Whether you're buying an Provence investment property to rent or you’re looking to buy a Provence property to renovate for resale, a large part of your success will come down to the region or town you buy into. One the one hand it makes sense to buy an investment property in a more developing or undervalued region in the Provence. On the other hand however, it makes sense to buy a rather developed and highly valued region of the Provence. Generally speaking, many developers claim that there will always be a shortage in supply for good quality properties in Provence and Cote d Azur villas. Prices for these kind of properties are already high, but will most probably grow even more in the years to come. The easiest way of getting a feel for good prospects is just to jump in your car and drive around your area. Look for areas with a lot of development going on, or where new housing projects are planned. If you're buying a rental property, bear in mind that if you're going to be doing maintenance and repair work yourself, somewhere relatively close to a large do-it-yourself store is a good idea so that you don't have to spend a lot of time traveling to and from the property.South of France Real Estate Information: Looking at a French mortgage
When it comes to financing the purchase of Provence rental property, lenders often require larger down payments and higher interest rates. This is because lenders know that owners of rental properties are more likely to default on mortgage payments than on payments for their personal homes. Simply put, you pay more because rental property is a higher risk investment. To improve your chances of getting a good French mortgage, it's important to have good credit and to reduce your credit card and other consumer debt as much as possible. It is also important to make sure you have a little cash reserve left over after you've bought your property. This cash reserve could come in handy when you are confronted with surprise expenses such as repairs (and periods when the house is vacant, if you've purchased a rental property).
Get to know the locale French Tax Laws
Owning a Provence investment property and/or renovating an old Provence property, can provide tax benefits. Getting to know your local and federal tax laws is important for maximizing the profits you can make from investing in real estate. You could for instance look into the possibility of making the investments in your newly acquired property tax-deductible from your rental income or future taxes on the profit you might make when selling the property. Mortgage interest payments on investment properties might also be tax-deductible.
Tax laws might also be different with regards to the area you buy your property. Some areas might offer you additional incentives to buy, buy offering additional tax breaks. Buying property in Aquitaine could for instance be more interesting then buying in a much more popular region or town in the Provence. Do your homework, choose your dream property in South France carefully and watch your investments grow.
posted by Property Alert at
3:13 AM
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