Housing Opportunities In France For International Investors
Trevor Leggett, managing director of French estate agency Leggett Immobilier, comments on the results of the French general election.
He says:
"It's impossible to accurately predict the impact that Hollande's narrow victory will have on the French property market. His pre-election pledges were to increase the upper income tax to 45%, bring more people in to the annual wealth tax band, and introduce a 75% "super tax" band for anyone whose annual income exceeds £1million. He has also pledged to end the austerity measures brought in by Sarkozy and spend his way out of trouble.
"These pledges seem to have some central London estate agents rubbing their hands with glee at the expected influx of the French 'super rich'.
"One thing we can predict with confidence is that this change in governmental strategy will create opportunities for international investors. We are already seeing the euro/sterling rate hitting the 1.25 mark and with french mortgages already amongst the cheapest in Europe it looks like there will be plenty of people looking to both buy and sell over the course of the year.
"This time last year you could get 1.10 euros to the pound which means that for a client with £400,000 to spend they now have around €60,000 more in the kitty than they did 12 months ago. That would pay for a pool, tennis court and a season ticket for the plat de jour at your local brasserie.
"Whatever happens though you can be sure of one thing. France will continue to be the most visited country on ther planet and will, once again, head up just about every "quality of life" survey that the glossy magazines are so fond of publishing!"
"It's impossible to accurately predict the impact that Hollande's narrow victory will have on the French property market. His pre-election pledges were to increase the upper income tax to 45%, bring more people in to the annual wealth tax band, and introduce a 75% "super tax" band for anyone whose annual income exceeds £1million. He has also pledged to end the austerity measures brought in by Sarkozy and spend his way out of trouble.
"These pledges seem to have some central London estate agents rubbing their hands with glee at the expected influx of the French 'super rich'.
"One thing we can predict with confidence is that this change in governmental strategy will create opportunities for international investors. We are already seeing the euro/sterling rate hitting the 1.25 mark and with french mortgages already amongst the cheapest in Europe it looks like there will be plenty of people looking to both buy and sell over the course of the year.
"This time last year you could get 1.10 euros to the pound which means that for a client with £400,000 to spend they now have around €60,000 more in the kitty than they did 12 months ago. That would pay for a pool, tennis court and a season ticket for the plat de jour at your local brasserie.
"Whatever happens though you can be sure of one thing. France will continue to be the most visited country on ther planet and will, once again, head up just about every "quality of life" survey that the glossy magazines are so fond of publishing!"
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