Obtaining a mortgage in France is easier than one may think. French banks are becoming more aware of foreign buyers and are very keen to lend money at attractive rates and terms. There are many benefits to obtaining a mortgage in France as opposed to your country of residence.
Thanks to a competitive mortgage market and buyer friendly government policies, French mortgage rates are among the lowest in Europe. As a non-resident, you can obtain a mortgage of up to 25 years at 80% of the property value, and interest rates as low as 3.3%, which compares favourably to rates in the UK and Ireland.
A French mortgage can only be taken out against the purchase price of the property including the agency commission, and not against other fees such as notaires charges.
When calculating monthly mortgage repayments, potential rental income that will be generated from the new property may not be included. Also as a general rule, monthly mortgage re-payments may not exceed 1/3rd of your net income, however our mortgage broker will be able to advise you in regards to your particular financial situation.
Popular French mortgage lenders include Abbey National, BNP Paribas, Banque Patrimoine Immobilier and Credit Agricole. You can apply directly or we can put you in touch with an English speaking mortgage broker who will work on your behalf to get the best deal.
In April 2007, the last of the Irish government-sponsored Special Savings Incentive Schemes (SSIAs) will mature, unleashing €14bn in capital into the market. Irish investors, thousands of whom have already accumulated international property portfolios, are once again eyeing property abroad as a shrewd investment and a home in the sun.
There couldn't be a better time to invest in Nice. The imminent completion of the Nice Tramway, the new Voie Rapide (ring-road) and the retiring of the French baby-boomer's in 2010 will propel an already buoyant market.
Nice, capital of the French Riviera, is toujour a la mode (always in fashion) and will continue to be for some time to come. Famed as a classy holiday destination, the well-heeled have been holidaying here since Queen Victoria herself arrived in the 19th Century, announcing to the world that Nice is the place to be seen. 10 million tourists pass through Nice International airport per year, filling the beaches, dining in the restaurants, and generally living the high life.
Property in Nice is not out-of-reach for the Irish buyer, with Ireland now the second richest country in Europe by GDP per capita. With the high value of Irish property, ever-increasing annual salaries and the Euro as a stable currency, Irish buyers can afford a lot more than they think.
Despite publicity to the contrary, second homes are not elegible to be put into a SIPP fund.
Anyone doing so will face an immediate 40% tax bill on the purchase, and a further tax penalty of 30% of the value
of the property. Commercial property may be held in a SIPP without penalty. The government will
be proposing a "Real Estate Investment Trust" scheme some time in 2006/2007 but it
only applies to domestic and foreign investors in the UK property market.