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French Property Investment


Investing in French Property

If you are looking to invest in France it is definitely worth considering purchasing a property giving you a guaranteed rental. Latitudes offer a selection of properties that are to be purchased off-plan where an insurance-backed guaranteed rental is offered by a rental management company on a three year lease.

This is a classic purchase where some of the development will be purchased by people wishing to use them for permanent or holiday homes. Therefore if you wish to purchase in order to achieve a good capital increase on your investment they offer excellent potential, as much of the development will be owner occupied and therefore easily saleable on the open market.

Buy To Let - Guaranteed Rental

French properties are available with rental returns of approximately between 3.8% - 5.5% guaranteed. The management company will find a tenant and collect rents etc. The property is let unfurnished. The charges that the rental company will make for managing the property plus the rental guarantee will amount in total to just over 10% of the rental. The guarantee will provide that should the property not be let, or rent not be paid, you will still receive the rental quoted to you. Should the property be let for more than the guaranteed amount, you will receive in full the extra amount whilst the tenant is in situ. The rental is also index linked.

What happens when the Lease Term is Complete

If you wish your tenant to leave at the end of the 3 year term you must write to give him notice 6 months prior to the end of the agreement and you can then use it for your own purposes or sell. If the tenant wishes to leave before the end of his tenancy he can give 3 months notice at any time, and if you wish to relet the management company will do this for you, but in the event that you have a void, your guaranteed rent will be paid. Alternatively, you can take the property for your own use at that time.

After each three year lease is over you can renew with the management company for a further period of three years if you wish. A deposit from the tenant is held by the management agency against dilapidations.

This type of purchase gives you more freedom to sell or move in when you wish but it does not allow any personal use whilst letting. Also of benefit is that the development is lived in by many of the owners, not just renters, so that it may be more saleable on the open market. The properties are generally well priced and have good potential for capital increase due to their location.

Leaseback Properties

If you are looking for long term contractual arrangements, leaseback agreements may be available for some properties. Please visit our French Leaseback Properties page for more information.

French Property Investment | Buy to Let | Guaranteed Rental

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