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Wednesday 20th September 2017
Latest Domani News
May 2013

NOW IS THE TIME TO FINANCE A FRENCH PROPERTY PURCHASE

Competition between French banks for domestic buyers has created the best opportunity for clients to borrow money in the country since the end of WWII. Non-residents can access these all-time historic low rates with a 20 year fixed rate mortgage now standing at 3.35% and a 20 year tracker mortgages from 2%.


FRENCH MORTGAGE RATES HIT NEW ALL TIME LOWS

Despite the lack of movement in the European Central Bank which has remained stable at 0.75% for the past eight months, French banks have decreased both their rates and margins as competition for the best clients heats up. Non-residents can also access these historically low rates with a 20 year fixed rate now standing at 3.35% and a 20 year tracker mortgages from 2%.




The current rates on offer are 0.25% below previous lows which were last seen at the end of WWII. The cost for a €100,000 loan has now dropped to €572 per month for a fixed rate over 20 years and €502 per month for a variable rate at 2%. These new rates are certainly attracting the attention of investors who can see the value of locking in these rates for long term investments. One new build development in the Alps with 91 units has almost sold out in the past two months. 



If you strip out the inflation element which is currently 1% then the current variable rates are effectively at 1% and fixed rates at 2.35% in real terms. However you look at it, this is incredibly cheap money. 




Now is certainly one of the best moments for those seeking to buy a property in France. The combination of ultra-low rates and soft property prices mean that there are extremely good deals to be had.



For further information on how your clients can access these rates and structure their French property purchase please feel free to contact us.


END OF SEASON DISCOUNTS                                                                                                              

A number of developers have arranged end-of-season discounts to encourage undecided clients and provide a sales boost just before summer.

Sainte-Foy L'Etoile des Cimes

At the Savoyard resort of Sainte-Foy prices have been reduced by up to 10% and the guaranteed rental returns have been increased to 4.3% including personal usage.


These piste-side properties were already around 50% of the value of nearby Val d’Isere so they now represent even greater value. The reductions also mean that of the larger units are now over €57,000 cheaper. These offers are available only until the end of May 2013.


Belle-Plagne Le Centaure­

A "7% cash-back+free parking" offer is in place at Belle-Plagne Le Centaure. With prices for these ski-in ski-out properties ranging from €190,000 to €493,000 (including furniture and parking) this offer provides the purchaser with cash backs values varying from €12,600 to €34,300 (7% cash back calculated on property value only).



SALES SUCCESS AT FERMES DE CHATEL                                                                                        

Our most successful development this ski season was Les Fermes de Chatel in the chocolate-box resort of Chatel in the Portes du Soleil. The combination of prime base-of-slope location and reasonable pricing coupled with France’s low mortgage rates enabled 67 of the 89 apartments (65%) to be sold within just a few months. There are some great units left and some others could come back on line so let us know if you have any interested clients.



NEW LONDON INVESTMENT PROPERTY DESK                                                                            

In response to continued investor appetite for London based investment acquisitions, our London property specialist is successfully marketing a range of on and off-market opportunities. These include pre-let retail & office investment units, prime residential homes, residential buy-to-lets, hotels, development opportunities and more.








 
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