Simple French mortgage advice

Property ownership in France has been a firm favorite with Britons for many years. Driven by strong growth rates and good investment returns for the second home owner and investor alike, non-resident ownership in France has increased, particularly in the last 10 years. Traditional ferry routes enhanced by road and rail links across the Channel, extensive road networks and the ever-growing number of low-cost airlines flying to a growing number of French airports have made traveling across the Channel more accessible and even cheaper.

This proximity to the UK has made French Property one of the most popular options for investment property buyers. The French real estate market is extremely diverse and offers a lot to the potential investor in foreign real estate. The south of France is a prime example and Nice and Marseille airports offer excellent year-round access to the French Riviera and are served by budget airlines such as Easyjet and Ryanair.

The good news for buyers of investment property in France is that there is an abundance of property throughout the south of France; a restored Mas, stylish new builds, a Pieds-a-Terre, family villas or even winter sports apartments. Capital appreciation is good and rental yields are strong. The Côte d’Azur is second only to Paris in terms of price, but you don’t need a fortune to buy it. With the many tourists and large number of conferences throughout the year, particularly in Cannes, a good rental return can be obtained from an investment property, making the South of France an excellent choice for your overseas property investment.

Unlike the UK, a long history of prudent lending in France (lenders do not allow the borrower’s total expenditure on financing payments to exceed 1/3 of their total monthly gross income) has meant that mortgage financing in France is still readily available and of great value . Coupled with an approximate 10% discount on French property prices year-on-year, there is no better time than 2010 to purchase an investment property in the South of France.

For Southern France second home owners and property investors, 2010 is the perfect opportunity to shop in some of Southern France’s most desirable cities such as Cannes, Nice and Antibes. French banks have not suffered as much as their UK counterparts, meaning they are more inclined to lend to foreign or non-resident real estate investors who may not have considered France before. Coupled with some extremely attractive loan rates (2.7% interest for non-residents only plus the ability to repay at any time with no penalties), France is quickly becoming a smart investment for non-resident and foreign property investors alike.

Considerable innovation in mortgage products by some leading banks such as Micos Banca and BNP, coupled with a diverse range of property in the south of France that can deliver good solid returns and investment growth, is prompting the UK property investor to look across the channel. Property in the south of France remains popular with buyers and 2010 could give the foreign property investor a firm footing in the French property market.

It is important to work with an independent mortgage broker registered in France with a Siret number. The company should also have a Carte Demarchage Bancaire/Financier; This means they are professionally registered with the Bank of France to carry out and advise on mortgages in France. The consultant should also have an ORIAS membership; Inscription in this register is compulsory for a natural person resident in France or a company having its head office in France in order to be able to carry out insurance or reinsurance intermediation activities. Professional indemnity insurance is vital and a company must have it in order to be registered with ORIAS.