Buying property abroad? Where to buy property? Choose France
Buying property abroad is a dream for many people but it is not for the faint-hearted. Buying a second home or a rental home is often seen as a long-term investment, acquiring property differs from all other investments in that it comes with its own unique set of challenges, cultural, legal, and of course financial.
When looking for property abroad, a holiday home or if you are looking to permanently relocate, we at Harrison Brook Property are here for you. Our work at HB Property is to help you decide where to buy the property, and assist and advise you on how to navigate the foreign and often complicated property markets.
In mainland Europe, our answer to the question “where to buy property” is France.
We love its rich history; unique culture; cuisine – which varies from region to region; geography – from sandy beaches to the snow-covered Alps; climate; the diversity of its people and much much more.
As an investment destination, the French property market is relatively stable and low risk unlike that of some other European nations. The stability of the property market is the result of a strong French economy coupled with an astute banking sector, and prudent lending practices that have maintained stable property prices in the key areas.
The three main areas in France where your money and property purchase can be seen as a safe bet are the French Riviera, the Alps and of course Paris. But then this obviously depends on what you are looking to buy and what you are looking to use it for. We at HB Property specialise in International clients purchasing property in France, we specialise in the French Riviera, where are office is conveniently located, just outside of Nice, but we can cover the whole of France with our panel of French and Monegasque lending partners.
Buying Property Abroad – French mortgages: what you need to know
Generally, French lenders place a lot of emphasis on the ‘repayment ability’ of their clients. This means we need to prove your capacity to repay the loan, by showing all current incomes and all current outgoings, add on the new loan and prove that you are able to repay the loan. This involves showing a debt ratio based on incomes to outgoings, but the bank always need to know who they are lending to, your assets, savings etc to have a complete understanding of a clients personal financial situation. The result is that default rates are low, and this has helped to stabilise French property prices.
Normally to access a French mortgage, the lending institutions will require you to place a minimum deposit of between 15% and 40% of the purchase price of the property depending on your country of residence.
At HB Property, we always have an initial call to better understand a client’s personal financial situation and what they are looking to buy and where. This enables us to give an idea of feasibility and what we think might be possible with our lending partners. But it also makes the client aware as to how much they will need of their own funds and what the potential costs involved are going to be.
Though a number of French retail banks do not offer mortgages to non-residents, we at HB Property have in place all the partnerships with all the French banks who will lend to International clients. These lenders offer this service at competitive interest rates, which currently are some of the lowest on the continent. We at Harrison Brook Property will help you find the solution and bank who offer non-resident mortgages that suit the client best based on their country of residence and sources of income. We offer advice on the most suitable non-resident and expat mortgages for you through our panel of lenders.
HB Property will walk with you from the start of your property journey to the end, and endeavour to help you fulfil your dreams.
So please do not hesitate to get in touch to better understand how we can help you obtain a mortgage and make that French dream become a reality.