How to Buy French Homes

Wednesday, December 17, 2008 7:20
Posted in category Real estate

All the countries of the Europe are very well connected. If you do want to stay at the at the center of the European business locations then French homes are the best place for you to be in. you will definitely find it very interesting. If you are going to buy a property in France then you should regularly look out for the some tips and tips related articles.

I would like to give you some tips regarding buying a house in France. They are as follows:

1. Gigantic rental income prospective
France is really the country which is really the home of tenants. Lots of properties have been given as a rent to the tenant. However you will not find any house which is vacant for the new tenants. Hence if you buy a property and you want to give it on rent then it is quiet sure that you will soon get a very good tenant for a very longer period. You will also get a good amount as a rent as well. Hence you can see only one thing in France and that is that you can make a huge profit in rental business here in France.

2. Slowing French market
It is really great to notice that after the sudden rise in the market in 2004 it is now the time for market slowdown. You will hardly find any investor who is not happy by this. However for those who do not find any appreciation in the prices of their property might really feel sad.

3. The rates of the real estate agents are a bit high
I must tell you that the rate of the agents is quiet high here in France. They can charge as high as 15 to 17 % or not lower than 7 to 8%. This is really a huge share and the people coming from North America who are found of lower rates will find it really very expensive.

4. You should be careful about capital gain tax
The French government charges a very high percentage on capital gain. The French citizens are charged as high as 26% of the capital gain. Non French EU citizens are charges up to 16% whereas the non EU members are charged a whooping 33.33% tax on capital gain. Hence it is really required to keep all these taxes in mind while buying or investing in any property. You must know that the capital gain tax is low if you own the property for a longer period of time.

5. Additional charges
You should really know about the additional solicitor and registration fee:
The solicitor charges around 3%. Registration fee accounts to 6%. There is also transfer tax which can be up to 7.5 for resold homes and 1 % for rebuild.

I must say that you should keep all this in mind while you prepare to buy a property in France.

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