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France
Full country name: French Republic
Area: 547,030 sq km
Population: 60.18 million
Capital City: Paris (pop 13 million)
People: 92% French, 3% North African, 2% German, 1% Breton, 2% other (including Provencal, Catalan & Basque)
Language: Breton, Catalan, Basque, French, Corsican
Religion: 90% Roman Catholic, 2% Protestant, 1% Muslim, 1% Jewish, 6% unaffiliated
Government: republicn
Head of State: President Jacques Chirac
Head of Government: Prime Minister Jean-Pierre Raffarin
GDP: US$1.58 trillion
GDP per capita: US$26,000
Annual Growth: 4%
Inflation: 2%
Major Industries: Oil refining, steel, cement, aluminium, agricultural products & foodstuffs (wheat, barley, maize, cheese), luxury goods, chemicals, motor manufacturing, energy products
Major Trading Partners: EU (especially Germany, Italy, UK), USA
Member of EU: Yes
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Real Estate Investing in France
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Summary:
Steady growth. Refurbishment of older properties is common but there are equally as many new developments in rural, city and coastal areas throughout France.
Rating: 5 Stars
Euro:
Strong against US $ and linked currencies. The average cost of living is generally lower than other EU Countries especially in country districts. Paris is however is very expensive.
Economic Climate:
There are no limitations on foreign property investment although purchasing regulations vary by type of property. French real estate increased by 30% in the 2001/2002 fiscal year.
Capital Gains Tax:
of 33% is incurred on the sale of second properties within two years of purchase, this rate reduces against additional years of ownership until it no longer applies after 22 years.
Popular Investment Areas:
Due to its size the options in France are diverse. The Dordogne, Charente Maritime, Brittany, and Cote D’Azur as well as cities like Lyons and Paris are all well subscribed.
Price Ranges:
Low budget property is costly to refurbish and may often be found in rural areas but also in ancient parts of towns and villages. The choice of location reflects future pricing and should be carefully considered. The universal appeal of The South of France, thanks to its climate and unique character, generally commands higher prices than other regions, apart from Paris.
Budgetary Guide:
New villas: E’s250,000 +, New apartments: E’s100,000 +, Town Houses: E’s 95.000 +, Detached houses: E’s115,000 to 150, 000, Farm Houses: E’s150,000 to 220,000, Character Houses with land: E’s300,000+ Renovations: E’s 25,000 to 35,000
Service Fees:
Agents often present their properties with the commission included in the asking price, in which case legal fees are the only addition. These start on very cheap properties at around 10% and decrease to around 6.5% for properties of 200, 000 euros upwards to approximately 6.2% on very expensive properties. These legal charges include taxations and re-registration of deeds, apart from the notaires fees, hence reduced rates for new builds. It is worth “shopping around” among reputable notaires who will provide quotes on the total legal charges.
Mortgages:
Standard term 15 years. Mortgage requirement must be indicated at the same time as the initial agreement. French banks will provide up 80% funding.
Information:
http://www.fopdac.com/ - (property & services info)
http://www.touteleurope.fr/ - (French Government)
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