French Property Market on the Up

Given the current economic issues in Greece, Ireland and Italy etc, it would seen that all of Europe is in economic turmoil, but, surprisingly, it has been recently been reported that expats and overseas investors have an increased interest in the French property market.

It has been reported that between June and October this year, the Overseas Guides Company saw a 192% rise in interest in their guide to France. As well as this, it has also been reported that experts think France is one of the more stable economies in the Euro zone, and this is the reason for the increased interest from investors.

Nicolas Sarkozy, the French President, has outlined plans to increase wealth tax limits in order to offer benefits to foreign property buyers and increase the countries income from property sales and the added benefits they can bring, such as money from tourism and even holiday home insurance.

Richard Way, an editor at the Overseas Guides Company, has been commenting that British people looking to move to France will be further attracted by the increase in the wealth tax threshold.

On the subject, he was quoted saying: “Now, if your total chargeable wealth is below €1.3m you do not pay any wealth tax. As from next year there will be just two tax rates: 0.25% for households with wealth between €1.3m and €3m and 0.5% for those with wealth over €3m.”

“Most people are better off under the new system; those who have high value assets but a relatively little income might find it less attractive. Meanwhile, Spain has just reintroduced wealth tax, after abolishing it in 2008; the threshold at which it kicks in is a less attractive €700,000.”

The value of French property has also risen steadily in recent months, and the French Federation of Estate Agents have predicted that house prices will have increased by at least 6% by the end of 2011.

Article written and supplied by Matthew Read on behalf of "Insure My Villa"

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