A buy-to-let property in France is an investment which you intend to rent out to tenants. As with any real estate purchase, it pays to plan and be well informed.
Location, location, location
There has been some scandal in France regarding buy-to-let properties. It seems that some unscrupulous estate agents and developers over saturated some markets with more buy-to-let properties than demand warranted. The result was investors without quality, high paying renters who had to sell their properties at a loss.
Buyer, be aware of the market in which you are purchasing. Do your own research to determine your level of buy-to-let competition compared to the demand from would be renters. You also want to make sure that the current rental market will support the payment amount you need to cover your mortgage and expenses.
Rental type
Another factor to consider in the buy-to-let market is the type of rental property you want to own. Are you looking for a vacation home for your family or strictly an investment? Do you want short term holiday rentals in a furnished unit or long term residential rentals in an unfurnished unit?
Property perfect for long term residential letting will have different characteristics then a holiday rental. When purchasing a long term residential rental you will want a location which offers a quality home setting with easy access to jobs, schools, transportation, shopping, churches, and other facilities of daily living. Holiday letting will be the most profitable in tourist destinations with great weather, beaches, shopping, dinning, and other popular attractions. A long-term renter will be looking for a property with a good kitchen, plenty of living, and great bathrooms while a holiday renter will be more interested in the number of beds, showers and amenities available.
Off-plan
As an investor, you should consider purchasing off-plan to get a better value for your money. Purchasing prior to the start of construction on a property can net you big discounts in total price with a quickly rising property value as construction nears completion. This combination of low cost and high value will minimize your mortgage expense while maximizing your rental price.
Regardless of the type of property you purchase or its level of completion, the purchase of a buy-to-let property is a business transaction and needs to be treated as such with professionalism, knowledge and emotional detachment.
by Cheryl Hartzman, AboutFrenchProperty.com - Copyright © About French Property
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