If you are looking to invest in South of France you might be wondering about the rental yields in France.
In the practice of investing in property, there are many factors to consider in working towards a successful outcome. The first, most fundamental factor is that you should buy your French property at a good value. This means discovering a property that falls below market value (perhaps a renovation project) or making your purchase at a time when the market is at the bottom of a downturn.
There have been recent signs of an upturn in the French housing market. Prices are expected to rise through the remainder of 2018 and on into 2019. This means that we are currently close to the foot of a downturn, now is a great time to consider buying in France.
Costs vs R
The second consideration is to look at times when costs associated with French mortgages for expats are low, but rental yields are high. As interest rates continue to remain low across the Euro Zone, now is a great time to borrow. In the South of France, rental yields are really coming into their own. Property investors would traditionally look at the long-term for property rental yields to get a return on investment. However, French residential rentals are a little different. Indeed, laws heavily favour the tenant, and market rates aren’t favourable for traditional approaches. The niche in the market that you should aim to exploit opens up the South of France to prosperous property investment.
A property goldmine
The South of France benefits from long-term winter rentals for house hunters, and summer holiday rentals for holidaymakers. A 4 bedroom villa with a pool in the South of France will deliver an average 7-10% rental yield. Around 3/4 of this will come from weekly summer rentals, and the remainder will come from long-term winter rentals. A 4 bedroom villa in the Languedoc region currently costs around €330,000. Therefore, if you have the capital to invest you can get great returns very quickly.
The perfect time
With all the signs pointing to an upturn in the rental yields in France, now is the time to invest to get both the rental yields and the net profit from resale. The French housing market is relatively stable, so when these price increases kick in it’s a rare opportunity to benefit. And with the above benefits associated with property investment in the South of France, investing in housing there could be a fantastic money-spinner for the shrewd investor.
Get in touch!
Here at HB Property, we have a team of expert to help you with your next real estate investment in South of France.
From mortgage broker to property manager, we can assist you purchasing and renting your property.