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The uncertainty surrounding the international stock market (French included) is leading more French households towards property investment. With UK property investors being put off by a deflating home market, following Les Français is now distinguishing itself as the most attractive prospect.
Despite all the recent headlines about a certain broker, France is not a country of gamblers, far from it, so no wonder that French households prefer property to shares investment: the French concept of investment is all about security, traditional and predictable assets that will appreciate and be passed on to the next generation. According to the latest study from French newspaper Le Figaro, last month’s black Monday is very likely to push even more French households towards property, either now or once the stock market has stabilised. Least affected share holders are set to liquidate their portfolio and re-invest in bricks and mortar instead – as has already been the case last year following the ‘Dotcom’ crash.
‘So, where are the best buys? Danny Silver of PDF and John Grimes of Sotherby’s both predicted last year, the market is getting more and more refined and at a time where security prevails, the preferred locations are city centres, business parks and the niche luxury property market, which are a safer bet than rural areas and small towns - these logically see less demand from the home market, due to their more volatile appreciation, rental and resale potential.
Rental returns for Buy-to-Lets is likely to settle at around 5.5 to 6% p.a. rental returns this year (which remains attractive) and this percentage could decrease further the more you wait to invest due to the growing gap between property prices (linked to increasing market demands) and rental rates (linked to slow household wages’ increase). This is good news for people who have already invested or propose to do so in next months.
The predicted rise in French property investment and reported market appreciation are good news for British and Irish investors and following in French investors’ footsteps would definitely be a wise move which is set to pay off in the long run; the prospect of safety offered by realistically priced property with strong home demands will ensure good yields, resale potential and eventually return on investment.
So, in essence, there is no need to gamble to increase your profits: chose the safe route instead and avoid a lot of trouble! If only this could apply to some brokers.
Contact us for further info!
France now has the second largest population in Europe, with 63.8 million inhabitants, just behind Germany, and ahead of the United Kingdom (although it has a land mass over twice that of the UK).
According to the French statistical agency INSEE, the population of France grew by 0.6% last year, with 816,000 births and 71,000 new immigrants, set against 526,000 deaths.
France has the highest birth rate in Europe, alongside that of Ireland, whose figures for 2007 are not yet available.
Whilst the number of those getting married decreases, so civil partnerships continue to seduce an increasing number of couples. Around 400,000 couples are now in a civil partnership. The figures were sharply up in 2007 over 2006, in part no doubt to the change in inheritance law introduced by the Government granting the same tax status to both married and civil partnership couples.
Life expectancy continues to increase, and over the last ten years the life expectancy of men has increased by three years, whilst it has increased by two years for women.
Men now have a life expectancy of 77.5 years, and women 84.4 years. French women now have the highest life expectancy in Europe, whilst French men do not fair quite so well, being within the top third in Europe. Swedish men have the longest life expectancy in Europe (78.8 years).
The study also shows that the population in Southern France continues to grow at a faster rate than elsewhere, in part because of the drift of the population to popular regions in the South.
The Cote d’Azur, long time favourite destination, has begun to be eclipsed by the Montpelier-Bordeaux axis, passing through Toulouse. Indeed, Toulouse has seen one of the most spectacular population growths throughout France, with an increase of around 50,000 people over the 7 years.
Contrary to popular belief, most of the new migrants to the area are not retired persons, but those between 30-59 years, many of whom who have relocated in search of employment and a better lifestyle.
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