(Partner Article) As an expatriate, it can be tempting to invest in your host country, especially if the local real estate market offers competitive rates compared to France. While offers are sometimes tempting, investing in a foreign country remains a risky bet, and investing in real estate in France often has more interest, in terms of ease of borrowing, profitability, and stability.
French banks allow you to invest on credit
Borrowing on credit in a French bank when one no longer lives in France is quite possible. Many are banks that agree to finance the expatriate project. Non-resident status often requires more than residents (about 25 to 30% of the purchase price), but the steps are not complicated by your geographic distance.
However, when it comes to foreign investment, French banks are much more reluctant to obtain loans. Knowing very little, if at all, the target country, they fear an unstable economy and a low rental yield. In addition, they will refuse to take a guarantee on a property abroad (the seizure of a property being a French law not applicable abroad).
This article could interest you: Borrow via a bank or broker, advantages and disadvantages
Rates are low
Not only will you be able to invest on credit with the French banks, but they have also the advantage of currently offering very low rates, even to expatriates.
Indeed, according to Anil, fixed-rate loans in the second quarter of 2018 are between 1.18% and 1.45%, which is even lower than in the first quarter of the same year. Thanks to generally stable rates, even degressive, and considering the stability of the rental market, real estate investments in France are therefore low risk.
However, choosing to invest in your country of expatriation carries a risk at the monetary level, because the currency of the country can be devalued and the financial gain can be uninteresting once converted into euros. If it is a developing country, then there are the risks of state failure, collapse of the banking system and political instability.
You could read: How to take advantage of low rates to invest in real estate in France?
Favorable economic and political environment
Indeed, this is another advantage that France offers in terms of real estate investment. Since the presidential election, the French economy has been on the rise. Inflation is rising and thus guarantees high rents, and investments seem less and less risky. In addition, the consequences of the Brexit should be felt in the long term, with a craze for French real estate (especially in the rental of premises and offices), due to a transfer of companies from London to Paris.
The economic and political context of France is therefore very reassuring for the coming years, while some foreign destinations involve risks of instability both economic and political, sometimes difficult to anticipate (insecurity, conflicts, change of head of state). …), which can greatly affect the rental demand of your property.
You could also read: How to make your rents repay your monthly payments?
Cities are attractive, dynamic and the properties are easily rented
Another undeniable asset of real estate in France: the cities of the Hexagon, dynamic and attractive, offer a very good rental profitability. This is particularly the case Paris, Bordeaux and Lyon : Preferred destinations for investment with a strong rental potential. These are also the cities where My expat is present.
The capital, despite a very competitive market with high prices, offers a very high demand and rental yield, as well as an almost guaranteed added value for resale. Rental investment in Paris is therefore low risk and very profitable.
Lyon is also a very good destination for rental investment, with the economic dynamism and ease of access it presents. The City of Lights offers a very important rental demand, attracting as much the French as the foreigners.
Finally, Bordeaux attracts each year more and more newcomers, including many Parisians. Indeed, the city has many assets: Easily connected to the capital, it offers a pleasant quality of life and a mild weather. If real estate prices are higher, this also guarantees the success of your rental investment.
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