Friday, February 28, 2014

Strong Pound And Low Prices Leading Brits to Look Towards France

Purchasing second homes as an investment
Purchasing second homes
British property investors are increasingly looking towards France for purchasing second homes as an investment, following a syncing of economic conditions that works in their favour. Recently, it had been reported that Spain overtook France as the number one destination overseas for British investors to purchase in. But according to France's English language newspaper The Connexion, this could be a reality that changes as the relative strength of the pound and the lowered prices for homes in France leads to more people looking to buy in the country.
Mortgage lenders, estate agents and currency exchange experts are all experiencing a serious rise in interest from British buyers at the moment, the latest report in the news provider has claimed. The biggest reason for the returning sentiment has been the strength of the pound. It has this week reached a 12-month high at €1.21 to the pound. On top of this, property prices in France have fallen by 1.8 per cent over the course of the last year with only low interest rates propping up the weak sector. This synergy is working to the advantage of overseas investors from the UK who can get more for their money.
And with the eurozone financial health improving all the time, house prices in France are only likely to improve in the long-term, meaning that people will most likely be able to make their money back somewhere down the line. Another potential reason for more Brits in France at the moment offered up by the newspaper is the fact that theFrench property sector is so strong currently. As the market improves, people are able to sell their homes for a higher price before buying something more substantial across the Channel.
Mark Bodega, of currency exchange specialists HiFX, said that France is so attractive at the moment simply because it "ticks all the right boxes". “Borrowing costs have tumbled in recent months; mortgage rates are at their lowest in years, and affordability has been boosted by a slower property market as worries remain that France may well be lagging behind the rest of the Eurozone in terms of economic growth. Of course, there’s also the added appeal of easy access from the UK, better weather and the way of life so adored by British Francophiles,” he said.
via:http://www.propertyshowrooms.com/france/property/news/strong-pound-and-low-prices-leading-brits-look-towards-france_313087.html

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